By James Evans, Director, TouchPoint Mortgages.
If you have a mortgage with Barclays and your current fixed-rate deal is coming to an end, you may be wondering what to do next.
One option is to remortgage to another lender. However, you may not need to go through the process of changing lenders to secure a new mortgage deal.
A Barclays product transfer allows you to switch to a new mortgage rate while keeping your existing mortgage with Barclays. It can be a straightforward way to secure a new deal, but there is an important question you should ask before accepting the rate offered to you: **is it actually the best deal available for your circumstances?**
At TouchPoint Mortgages, we help homeowners compare their mortgage options, including product transfers with Barclays and remortgages with other lenders. Our aim is to help you find a suitable deal without paying more than you need to.
Whether you live in Littlehampton, Rustington, Angmering, Arundel, Worthing, or elsewhere in the UK, here’s what you need to know about Barclays product transfers and how we can help.
A product transfer is when you switch from your existing mortgage deal to a new one with the same lender.
For example, imagine you took out a five-year fixed-rate mortgage with Barclays. Your fixed rate is now coming to an end, and you want to secure another fixed rate to protect yourself from potential interest rate changes.
Rather than moving your mortgage to another bank or building society, you could choose a new mortgage product available to existing Barclays customers.
This is known as a product transfer, sometimes referred to as a rate switch.
In many cases, the process is relatively straightforward because you are staying with your existing lender and are not applying for an entirely new mortgage with a different provider.
However, choosing a new rate is still an important financial decision. The interest rate, product fee, fixed-rate period and other mortgage features can all affect the overall cost of your borrowing.
If your Barclays mortgage deal is approaching its end date, it is worth reviewing your options well before your existing rate expires.
Barclays allows eligible customers to secure a new rate up to 90 days before their current deal ends.
The process generally involves the following steps.
The first step is to establish when your current deal ends, how much you owe and what interest rate you are currently paying.
You should also consider whether your circumstances have changed since you originally took out the mortgage.
For example, you may now have a different income, be planning to move home, want to borrow additional funds or wish to reduce your mortgage term.
These factors can influence whether a straightforward product transfer is the most appropriate option.
Barclays offers existing mortgage customers a range of rates when they come to switch their deal.
You may be able to choose between different fixed-rate periods, products with arrangement fees and fee-free alternatives, depending on what is available and which products you qualify for.
However, the first rate you see is not necessarily the best option for you.
At TouchPoint Mortgages, we can review the Barclays product transfer options available to you and compare them against suitable alternatives across the wider mortgage market.
This means we can look at the bigger picture rather than simply focusing on the interest rate displayed by your existing lender.
If a suitable Barclays deal offers good value, a product transfer may be the most straightforward option.
If another lender offers a more suitable deal, remortgaging could be worth considering instead.
The important thing is to make an informed decision based on your circumstances, rather than automatically accepting a new rate or assuming that changing lenders will save you money.
Once a suitable option has been identified, the next step is to arrange the new rate.
With a straightforward Barclays product transfer, there is generally no need to instruct a solicitor or arrange a new property valuation, although product fees may apply.
Where you use TouchPoint Mortgages, we can help you navigate the process, explain the available options and arrange the recommended deal in line with the applicable lender and network requirements.
A product transfer can offer several advantages over moving your mortgage to another lender.
Because you are remaining with Barclays, a straightforward rate switch can involve less administration than a full remortgage.
A product transfer will generally avoid the legal and valuation costs associated with a remortgage, although you may still need to pay a mortgage product fee.
Some remortgage products also include incentives such as free legal work or a free valuation, so it is important to compare the actual costs rather than assume one option will always be cheaper.
Barclays states that eligible customers switching their rate without making other mortgage changes will generally not need a new income and affordability assessment, provided their circumstances have not changed in a way that affects affordability.
This can be particularly helpful if your income or employment circumstances have changed since you first took out your mortgage.
However, if you want to borrow more, change your mortgage term or make other changes, additional checks may be required.
Some homeowners simply prefer the convenience of staying with their current lender, particularly when the alternative would involve a more involved remortgage process.
A product transfer can provide that convenience while allowing you to secure a new rate.
However, a product transfer is not automatically the cheapest option. A remortgage with another lender could still offer better overall value, depending on the rates, fees and mortgage features available.
This is where taking advice can make a real difference.
When Barclays offers you a new mortgage rate, it can be tempting to accept it immediately, particularly if the process appears quick and straightforward through the Barclays app or online banking.
However, you may not know whether that deal represents the best value available to you.
As an independent, whole-of-market mortgage adviser, TouchPoint Mortgages can review the suitable mortgage options available through our intermediary channels and compare them with the alternatives available to you.
This includes considering whether a Barclays product transfer is competitive or whether another lender could offer a better deal.
In some circumstances, we may be able to identify a more competitive rate or a product that offers better overall value than the option you were considering directly.
**We cannot guarantee that we will always beat Barclays’ direct offer.** The rates available depend on your mortgage details, loan-to-value ratio, eligibility and the products available at the time. Some products are available only through particular channels, while others may be exclusive to existing customers.
The benefit of using TouchPoint Mortgages is that we can assess the options available to you and help you understand which route is most appropriate for your circumstances.
A mortgage with a lower interest rate does not always work out cheaper overall.
For example, one product might offer a lower rate but charge a substantial arrangement fee, while another might have a slightly higher rate but no product fee.
The best option will depend on factors such as:
– Your outstanding mortgage balance.
– The interest rate available.
– The product fee and any other applicable charges.
– The length of the fixed-rate period.
– Your plans to move home or repay the mortgage early.
– The overall cost of the deal over the period you intend to keep it.
We can help you compare these factors so that your decision is based on the overall cost and suitability of the mortgage, rather than the headline rate alone.
It is sensible to start reviewing your mortgage options several months before your existing deal ends.
Barclays allows eligible customers to secure a new rate up to 90 days in advance, so preparing early gives you time to consider the available options.
If you leave your mortgage arrangements until the last minute, you risk having less time to review the alternatives before your current deal expires.
Once your existing fixed rate ends, you will generally move onto the lender’s applicable follow-on rate unless a new arrangement takes effect. This could mean paying more each month than necessary.
At TouchPoint Mortgages, we can help you review your mortgage arrangements in advance and establish the options available to you.
We can also help you consider whether it is worth securing a rate early and reviewing your options again if rates change before the new deal starts, subject to the relevant lender’s rules.
You may be able to switch your Barclays mortgage rate yourself through the Barclays app or online banking. However, doing so without advice means you are responsible for deciding whether the selected product is suitable for you.
By using TouchPoint Mortgages, you benefit from having a mortgage adviser review your options and explain the differences between a product transfer and a remortgage.
– Review the available Barclays product transfer rates.
– Compare suitable alternatives from other mortgage lenders.
– Understand the impact of product fees and other costs.
– Consider the appropriate fixed-rate period for your circumstances.
– Understand the potential advantages and disadvantages of switching lenders.
– Arrange a suitable mortgage deal and guide you through the process.
We provide whole-of-market mortgage advice, helping homeowners make informed decisions about their mortgage rather than simply choosing the first rate they are offered.
We also provide ongoing mortgage support, so you have someone to turn to when your next mortgage review comes around.
TouchPoint Mortgages is based in West Sussex and helps clients locally and across the UK.
If you have a Barclays mortgage and your current deal is coming to an end, we would be happy to review your options.
Whether you are based in Littlehampton, Rustington, Angmering, Arundel, Worthing, or further afield, we can help you establish whether a product transfer or remortgage could be the right option for you.
You do not need to assume that accepting the first rate offered by your existing lender is your only choice.
Send your message and we will be in touch, alternatively you can book an appointment to chat to one of our team.
