It is rare; however, it is possible to be declined for a product transfer mortgage.
With most product transfer applications, if you have a good payment history with your mortgage payments and your lender is confident that your circumstances haven’t changed then they won’t perform a credit search and affordability assessments.
However, if you have missed or late payments with your mortgage and your lender suspects that your personal situation has changed since you took out your original mortgage then checks can be performed causing your application to be declined.
Also, your lender reserves the right to conduct full affordability and credit score checks on any customer pre and post offer until completion. These spot checks could cause a declined product transfer mortgage application.
As part of our service, we perform free product transfer mortgages for our customers helping them overcome any hurdles that we face along the way.