Halifax Product Transfer for Existing Mortgage Customers
What is a Halifax Product Transfer?
A Halifax product transfer is a process where existing customers of Halifax mortgages can switch their current mortgage deal to a new Halifax mortgage product. This can be done before or after your current mortgage deal ends. It’s a simple and efficient way to potentially secure a better mortgage rate without the need for conveyancing.
Ready to start your product transfer? Fill in our quick and easy Halifax Product Transfer Form.
Benefits of a Halifax Product Transfer
The benefits of a Halifax product transfer are manifold, and they extend to both the client and the role a mortgage broker can play in facilitating this process. This process provides a unique opportunity to reassess and realign the mortgage product with the client’s current financial situation and future goals. Let’s delve into the specific advantages involved.
How a Mortgage Broker Can Help
As a mortgage broker, facilitating a Halifax product transfer provides several benefits. As part of this process, we can offer our clients a selection of mortgage products tailored specifically to meet their individual needs. It also allows us to assess our clients’ finances (including general insurance policies) and offer advice about the most effective course of action for them. Lastly, we can assist them through the transfer process to ensure it goes smoothly.
Benefits Existing Halifax mortgage Customers
Halifax product transfers provide our clients with tailored mortgage offers based on factors like their current credit profile, usage of accounts, and the energy efficiency of the property. No upfront legal fees are payable when making this choice – making switching a cost-effective option.
Halifax Product Transfer Rates
Halifax offers a system of custom rates for each existing mortgage holder. This means that your options may differ from the standard rates. For example, as of July 1, 2023, the typical rates for a 2-year fixed mortgage under 60% loan to value (LTV) were 5.58% with a £999 fee or 5.89% with no fee.
It’s important to note that the Halifax standard variable rate is currently 8.49%. If you are on this rate, it may be beneficial to explore a product transfer on your mortgage balance to secure a lower interest rate. You will have no early repayment charge and therefore the process could be quick and you will benefit from a new monthly payment.
When to Choose a New Halifax Product Transfer Rate
Following a change in policy effective 5th December 2022, Halifax existing customers can now select and secure a new Halifax Product Transfer rate up to six months before their current mortgage product ends. This means that if your client’s existing rate ends on 31st December, a new rate can be selected from 1st July.
Factors to Consider
When considering a Halifax product transfer, there are several factors to consider. These include:
- the product fee,
- the interest rate,
- and the term of the new mortgage deal.
The product fee may be paid upfront or added to your borrowing. While the mortgage interest rates on fee-charged products can be considerably lower than the interest rates on products with no product fee, it’s important to consider whether the saving on interest when using a fee-paid product can outstrip the cost of the fee.
It’s also important to consider the term of the new mortgage deal. If your client plans to make overpayments or their borrowing level or mortgage term is likely to change, a fee-charged product may not be the best option.
Case Study: A Successful Halifax Product Transfer
Frequently Asked Questions
Who is eligible for a product transfer?
Existing customers of Halifax mortgages are eligible for a product transfer. It's a great option if your current deal is ending soon or if Halifax's current mortgage rates are more favourable than your existing rate.
How long does product transfer take?
The product transfer process with Halifax is typically quick and efficient. It can take a few weeks from the application to the completion of the transfer, but this can vary depending on individual circumstances.
Is a product transfer easy?
Yes, a transfer is generally straightforward. Halifax makes the process easy for existing customers, with no need for conveyancing and no upfront legal fees.
What is a mortgage product transfer?
A mortgage product transfer is a process where you switch your current mortgage deal to a new product with the same lender. It can potentially secure a better interest rate and save money in the long run.
Is a remortgage the same as a product transfer?
The term "remortgage" can be used in two contexts. It can mean switching your mortgage to a different mortgage lender. However, it can also refer to changing your mortgage deal with your current lender, which is essentially the same as a product transfer. Both involve switching to a new mortgage product with your current lender. Both options can potentially offer better rates, but they involve different processes.
About Halifax Mortgages for Existing Customers
Halifax, part of Lloyds Banking Group, is one of the UK’s premier mortgage lenders, boasting outstanding customer service and a competitive Halifax mortgage rate. Halifax also offers existing customers the unique chance to review their current mortgage deal and potentially secure an improved one through a product transfer – giving you peace of mind knowing you can find an improved one through them!
Product transfers with Halifax allow existing customers to switch their current mortgage deal for one offered by Halifax with greater benefits or rates, such as extended terms or more attractive rates. The process is quick and efficient with no legal fees needed when switching products.
Halifax provides existing customers with an array of mortgage products suited for switching, such as both fixed-rate and variable-rate options, that best meet their current financial circumstances and future plans. Customers have complete freedom in selecting a product that best meets them.
As mortgage brokers, we can assist in the product transfer process with Halifax to ensure you find the ideal transfer option for your circumstances – be it lower monthly payments, shorter mortgage terms or freeing equity from your home – whether this means a reduced monthly payment, shorter terms or equity release Halifax product transfers could be the right move for you.
A Halifax product transfer can be a beneficial option for existing Halifax customers. It offers the opportunity to secure a better mortgage rate and save money in the long run. A mortgage broker knows it’s important to understand the benefits and considerations of making the decision of staying with Halifax or moving to a new lender.
Halifax Product Transfer Form
Please take note of the following...
Product Transfers with Halifax may be available if your existing residential mortgage is either on the standard variable rate or is within 6 months of the expiry of fixed or discounted rate agreements.
Please complete and submit the below form and one of our advisors will be in touch.