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What is Product transfer?
Last verified 31 October 2026
A product transfer is when a mortgage borrower stays with the same lender and moves to a different product, or renews their existing one, usually with no extra borrowing. The FCA's own definition allows only product or arrangement fees to be added to the balance.
Why it matters to landlords
Landlords meet it when a fixed rate ends. The lender may offer a new deal without a new application to another lender, which is quicker than a remortgage but only shows you that lender's products. The FCA says lenders may use a lighter affordability check when a customer switches to a similar but more affordable deal, and that this is optional for lenders. The FCA also says most buy-to-let loans are not regulated by it, so a buy-to-let lender follows its own criteria.
Before accepting, check the contract for any early repayment charge, because the FCA says its rule changes do not alter when one can be charged. For tax, HMRC treats fees and incidental costs of getting or repaying a mortgage on residential lets as finance costs, which get basic rate relief only. Keep the offer and the fee for your records.
Example
Tom's two-year fixed rate on a £150,000 interest-only buy-to-let ends on 31 December 2026. His lender offers a new five-year product with a £999 fee added to the balance and no new borrowing, so the balance becomes £150,999. He records the fee as a finance cost, not as an ordinary expense.