Ever wondered, ‘How long does it take to remortgage?’ You’re not alone. This guide demystifies the remortgage process, offering a clear timeline and essential tips for a swift and successful remortgage.
How long does it take to remortgage?
The remortgage process typically takes between 4 to 8 weeks to complete after you have applied. This timeline can vary based on several factors:
- Lender Response Times: The speed at which your chosen lender processes applications.
- Document Preparedness: How quickly you can provide necessary documents like proof of income and identification.
- Property Valuation: Time taken for the lender to instruct a remortgage valuation to assess the value of your property.
- Using a Mortgage Broker: Engaging a broker can streamline the process, as they efficiently manage application details and liaise with lenders.
Being organised and responsive, especially when working with a mortgage broker, can help expedite the remortgage process. It is always recommend that you start your remortgage journey 6 to 3 months before your current deal ends. Below we break down and discuss the remortgage process further.
Here’s a quick break down of all the remortgage process and the timescales you can expect at each stage.
- Finding a broker and consultation (1-2 weeks): Before diving into the remortgage process, you’ll need to research and choose the best mortgage broker. Have a chat with the broker about your financial situation and needs, and they’ll search for the best deals tailored to your circumstances.
- Application and credit assessment (1-2 weeks): Once you’ve picked a mortgage deal, your broker will assist you in completing the application and gathering the necessary documents. The lender will then run a credit check and evaluate your finances to determine if you’re eligible for the remortgage.
- Property valuation (1-2 weeks): Your lender will need to determine the current market value of your property, which may involve a basic automated remortgage valuation or a more thorough in-person assessment.
- Mortgage offer (1-2 weeks): If everything checks out and the lender approves your application, they’ll issue a formal offer for a mortgage with all the terms and conditions. Your broker will go through the offer with you to make sure it meets your expectations.
- Legalities and conveyancing (4-8 weeks): A solicitor or licensed conveyancer will handle the legal work on behalf of the lender, including checking property titles, reviewing the offer, and preparing necessary documentation. Your broker might suggest a solicitor, or you can choose your own.
- Wrapping up the new mortgage (1-2 weeks): After completing the legal work and reviewing and signing all documents, your solicitor will coordinate with the lender (through the broker) to set a completion date. At this point, your new mortgage will be in place, and the old one will be paid off.
Related Reading: How soon can you remortgage before your fixed rate ends?
Factors that influence how long it takes to remortgage
However, various factors can influence the timeline:
- Job or income changes: If you’ve recently changed jobs or become self-employed, lenders may require additional documentation to verify your income, potentially lengthening the process.
- Property valuation: If you’re switching to a new lender, they’ll need to determine your home’s value. While this is often done quickly using a desktop valuation, discrepancies in value might lead to delays.
- Legal work: Remortgaging involves some legal work, such as verifying your identity and property ownership. Using the new lender solicitors can often save you time and money.
- Lender’s Processing Time: Different lenders have varying processing speeds. Some may handle applications faster than others, affecting the overall timeline.
- Credit Score and History: Lenders will review your credit score and history. Any issues or discrepancies in your credit report can slow down the process.
- Debt-to-Income Ratio: Your current debts relative to your income are scrutinized. High debt levels might complicate the approval process.
- Existing Mortgage Terms: Early repayment charges or specific terms in your current mortgage can affect the timing and feasibility of remortgaging.
- Market Conditions: Economic factors and housing market trends can influence lenders’ responsiveness and valuation accuracy.
- Documentation and Paperwork: The speed at which you gather and submit required documents like bank statements and proof of income can impact the timeline.
- Conveyancing Delays: If there are complications in the legal transfer process or issues with the property’s title, this can extend the time needed to complete the remortgage.
Working with a Mortgage Broker: Can It Accelerate Your Remortgage?
Engaging with a mortgage broker can streamline your remortgage process, potentially reducing the time it takes. Brokers’ expertise in handling applications and liaising with lenders can expedite the entire procedure.
Fee Free Remortgage Advice
At YesCanDo Money, our trusted mortgage brokers make all the difference when it comes to remortgaging. Our professional advisers not only grant you access to an extensive range of exclusive deals typically unavailable to the general public, but they also offer personalised guidance tailored to your unique needs.
Remortgage Process Timeline & Tips
Understanding the timeline for the remortgage can help you plan and manage your expectations. The process can vary depending on individual circumstances and the complexity of the mortgage application. Here’s a breakdown of the remortgage timeline into stages, their approximate durations and a checklist of things you should do at every stage:
Step 1) Preparation
Timeframe: (1-2 weeks)
Before beginning the remortgage, spend some time researching your options and preparing your documentation. This includes checking your credit score with credit reference agencies, estimating your property’s value, and gathering necessary documents such as payslips, bank statements, and proof of identity.
Checklist & Tips:
- Research and instruct the best mortgage broker who can provide valuable advice and assistance through the remortgage process.
- Obtain a detailed credit report and address any discrepancies.
- Organise your documents including 3 months of bank statements, recent payslips, proof of identity (passport or driving license), and proof of address.
- Review your financial situation with your broker to understand how much you can afford to borrow.
Step 2) Finding the right deal
Timeframe: (1-4 weeks)
Research potential remortgage deals and compare them based on factors like interest rates, fees, and repayment terms. This may involve seeking advice from a mortgage broker, who can help you find the best deals and negotiate with a mortgage provider on your behalf to get you a mortgage agreement. The time spent in this stage depends on how quickly you can find a suitable deal and how responsive the broker or lender is.
Checklist & Tips:
- Compare various mortgage deals and make notes on key features such as interest rates, fees, and loan terms.
- If you are using a mortgage broker, prepare questions about fees, terms, and mortgage features.
- Remeber to be clear about your priorities, whether it’s lower interest rates or better repayment terms.
Step 3) Mortgage application
Timeframe: (2-4 weeks)
Once you’ve chosen a deal, submit your mortgage application with the chosen lender. They will assess your financial situation, review your documentation, and conduct a credit check. They may also require a property valuation to confirm its value. Delays can occur if the lender requests additional documentation or if the property valuation is disputed.
Checklist & Tips:
- Double-check the application for completeness and accuracy.
- Prepare for possible additional documentation requests.
- Respond promptly to any inquiries from your lender and broker quickly to avoid delays.
How long does a remortgage application take?
A remortgage application typically takes 2 to 3 weeks to process. This time frame is an estimate and can vary depending on factors such as the complexity of the application, the efficiency of the lender, and the responsiveness of the applicant in providing necessary documentation.
During the mortgage application process, the lender will assess your financial situation, review your credit history, and request supporting documentation such as proof of income, statements, and identification. If you’re using a mortgage broker, they can help streamline the process by liaising with the lender and ensuring all required documents are submitted promptly.
It’s important to keep in mind that each mortgage provider has its own underwriting guidelines and processing times. Some may process applications more quickly, while others could take longer, especially if there are any issues or concerns that need to be addressed. To expedite the process, make sure to provide complete and accurate information, and respond promptly to any requests for additional documentation.
Step 4) Mortgage offer
Timeframe: (1-2 weeks)
If your application is approved, the new mortgage lender will issue a formal mortgage offer, which outlines the terms and conditions of your new mortgage. Carefully review the offer to ensure it meets your expectations and consult with your broker or legal advisor if you have any questions.
Checklist & Tips:
- Thoroughly review the mortgage offer for terms and conditions.
- Consider consulting with a legal advisor or financial expert if unsure about any terms.
- Understand the implications of the mortgage offer, including any fees or charges.
How long does a remortgage take after the offer?
After receiving the new mortgage offer, the remortgage typically takes around 3-6 weeks to remortgage completion. During this time, the legal work is carried out, and the funds are transferred between your current mortgage provider and the new mortgage lender.
It’s important to note that the exact duration may vary depending on individual circumstances and the efficiency of communication between all parties involved. If there are any complications or delays in the legal work, it could potentially take longer than the estimated 3-6 weeks.
Step 5) Legal work (2-4 weeks)
Timeframe: (2-4 weeks)
A solicitor or conveyancer will handle the legal aspects of the remortgage, such as preparing and reviewing paperwork and conducting searches to ensure there are no issues with the property’s title. They will also liaise with the new lender and your current lender to facilitate the transfer of funds.
Checklist & Tips:
- Ensure your solicitor has all the necessary documents.
- Keep in regular contact with your solicitor to stay updated on the progress.
- Choose a solicitor experienced in Remortgage Conveyancing
Step 6) Completion
Timeframe: (1-2 weeks)
When all the necessary forms have been filled out and the money has successfully changed hands, your remortgaging process is complete. Your new lender will provide you with information regarding when your first payment date is due along with any other relevant data to help you manage your mortgage.
How long does a remortgage take to complete?
From beginning to end, the entire remortgage process to a new lender can take anywhere from 8-16 weeks to complete. Be mindful that these timelines are merely estimates and could be influenced by many factors like your personal situation, lender responsiveness, or even how intricate the application is.
How long does it take to remortgage with your current lender?
Remortgaging with your current lender can usually be completed in 5 to 7 days. If it’s an easy switch and arranged over the phone, though shopping around to see if you can still find a more cost-effective overall deal elsewhere may still be worthwhile.
If you are considering remortgaging with your current lender, this is known as a mortgage product transfer. This process is generally quicker than switching to a new mortgage lender and usually involves fewer affordability checks. Your current lender has already approved a loan secured against your home, so you shouldn’t need it formally valued again. By opting for a product transfer with the same lender, you can also remortgage without using a solicitor.
Related Reading: Should I Remortgage With The Same Lender: A Comprehensive Decision-Making Guide
Below we have written comprehensive guides on how long it takes to remortgage with 8 of the mainstream mortgage lenders. Check out our detailed guides on how long a remortgage takes with top lenders like TSB, HSBC, and Barclays for specific remortgage insights.
- How long does a TSB Remortgage take?
- How long does a HSBC Remortgage take?
- How long does a NatWest Remortgage take?
- How long does it take to remortgage with Halifax?
- How long does a Nationwide remortgage take?
- How long does a Barclays remortgage take?
- How long does a Santander remortgage take?
- How long does a Virgin Money remortgage take?
How To Prepare For Your Remortgage
Before starting the remortgage process, it’s essential to make sure you’re in the best position possible. Follow these tips to prepare:
- Check your credit score: Your credit score plays a significant role in determining the interest rates and new mortgage deal available to you. Check your credit report for any inaccuracies and take steps to improve your score, such as paying down debts and ensuring all bills are paid on time.
- Evaluate your home’s value: Research comparable properties in your area to estimate your home’s current value. This will help you determine how much equity you have, which can affect the mortgage deals available to you.
- Calculate your loan-to-value (LTV) ratio: The LTV ratio is the percentage of your home’s value that you’re borrowing. A lower LTV often results in lower mortgage interest rate and mortgage deals. To calculate your LTV, divide your outstanding mortgage balance by your home’s value and multiply by 100.
- Gather necessary documents: To streamline the remortgage process, gather documents like recent payslips, bank statements, and proof of identity. Having these on hand will make it easier to provide them when requested by a new mortgage provider.
- Research potential deals: Look for a new mortgage deal that suit your needs and financial situation. Consider factors like interest rates, fees, and repayment terms when comparing deals. Don’t be afraid to shop around and negotiate with mortgage lenders to secure the best offer possible.
How to choose the best new mortgage deal
When searching for the right remortgage deal, keep the following factors in mind:
- Interest rates: Getting the best mortgage rates This is the most crucial aspect to consider, as it directly affects your monthly repayments. Look for the lowest interest rate that meets your needs, but also consider whether a fixed or variable rate is more suitable for your circumstances.
- Fees and charges: Remortgaging often comes with fees such as arrangement fees, valuation fees, and legal costs. Some lenders may offer “fee-free” deals, but they might have higher interest rates. Weigh the pros and cons of fees versus interest rates when comparing offers.
- Flexibility: If you anticipate changes in your financial situation, such as a higher income or the possibility of overpaying on your mortgage, look for flexible deals. Some mortgages allow overpayments, payment holidays, or the ability to switch between repayment types without incurring penalties.
- Early repayment charges (ERCs): Check whether your existing mortgage has early repayment charges, which are fees you’ll need to pay if you leave your existing lender early. If the costs of early repayment charges outweigh the potential savings from remortgaging, it might not be the right time to switch.
Frequently Asked Questions
How quickly can you remortgage?
You can typically remortgage within 4 to 8 weeks, though this can vary based on lender processes, your financial documentation, and property valuation.
What are the stages of a remortgage?
The stages of a remortgage typically include consultation with a broker, application submission, credit assessment, property valuation, receiving the mortgage offer, and completing legalities and conveyancing.
Why does remortgaging take so long?
Remortgaging can take time due to factors like lender response times, the complexity of the applicant’s financial situation, property valuation processes, and the thoroughness of legal checks.
Is remortgaging as hard as getting a mortgage?
Remortgaging is generally simpler than getting a first mortgage, as it often involves less stringent checks, especially if you’re remortgaging with the same lender.
How long does it take to remortgage and release equity?
Remortgaging and releasing equity usually takes between 4 to 8 weeks, depending on the lender’s efficiency, property valuation, and the speed of legal procedures.
How long does a remortgage take with the same lender?
Remortgaging with the same lender can be quicker, often taking around 2 to 4 weeks, as the lender already has most of your details.
How long does it take to complete a remortgage?
Completing a remortgage usually takes about 4 to 8 weeks, subject to lender’s processing time, property valuation accuracy, and the completion of legal formalities.
Is it worth remortgaging every 2 years?
Remortgaging every 2 years can be beneficial if it leads to better interest rates or terms, but consider potential fees and early repayment charges.
What is the 6 month lending rule?
The 6 month lending rule is a guideline used by some lenders, stating that a property must be owned for at least 6 months before it’s eligible for remortgaging.
What do lenders look at when remortgaging?
Lenders typically assess your credit score, income stability, current property value, loan-to-value ratio, and overall financial health when considering a remortgage application.
Conclusion
Remortgaging can be a smart financial move if done correctly. By understanding the process, knowing what factors to consider, and preparing yourself for the journey, you can secure a better mortgage deal and potentially save thousands of pounds over the course of your mortgage. Don’t be afraid to ask questions, seek professional advice, and take the time to find the best mortgage deal for your unique situation. With patience and diligence, you’ll navigate the remortgage with confidence and reap the financial benefits and more than likely lower monthly payments.
