The chances are that if you are wondering how long it takes to remortgage you may feel you have left it too late. On the other hand, you may be extra keen to sort get a new mortgage deal as early as you can.
Remortgage Process Timescale
Remortgaging now is a great time to not only grab an interest rate before they rise further and also it is a good time to sort out your finances. In this guide, we will show the quickest and most efficient way to remortgage and a few tips on getting the lowest interest rates and best mortgage deal at no cost!
How long does remortgaging take?
The average time a remortgage takes is 8 weeks. The shortest amount of time it takes to complete a remortgage is 4 weeks. The more organised you are with your paperwork the quicker the remortgage will be.
In the first part of this guide, we will take you reasons why people remortgage. This will allow you to ask yourself the right questions. Learn what you will need to provide to complete your remortgage as smoothly as possible.
What do you want to achieve from the remortgage?
You should always start with the end in mind and consider what you want to achieve from your remortgage. Below we list a few reasons why people remortgage,
remortgage before end of fixed term
One of the main reasons for a remortgage is to make sure you get a fixed rate before interest rates rise further. The chances are that you will be looking at a higher interest rate than you are presently on however it may be possible to keep your monthly payments similar to what they are at present. We have a lot of experience and examples where we have extended the term of the mortgage to keep our client’s monthly repayments as low as possible.
Are you wanting to raise some money on your new mortgage to enable you to make some home improvements on your property? Perhaps you are looking at putting in a new kitchen, or bathroom or increasing the size of your home by raising funds for an extension. The lender won’t want all the fine details of your home improvements however they need to know how much you will need to carry out the improvements. If you are intending to have major works done on your property now will be a good time to start getting builders’ quotes together.
Debt Consolidation Remortgage
When you apply for a mortgage the lender will need to understand all your finances including any credit cards or loans you may have. You will need to get sound financial advice from a mortgage advisor on whether it would make sense to consolidate your debts. Either way, you will need to have details of all these on the application.
How to remortgage
When you are remortgaging it makes sense to go and get the very lowest interest rate you can. With over a hundred banks and building societies offering mortgages and over 14,000 different deals available it can seem like a mortgage minefield!
You could try one of the many comparison websites however the problem with these is that not any of them compare the whole mortgage market! In fact, some of the comparison websites search just a handful of the thousands of mortgage deals available.
Save time and money by using a fee-free mortgage broker!
Remortgaging with a fee-free mortgage broker like YesCanDo Money can save you the headache of finding the best available mortgage deal.
A mortgage broker will search the whole mortgage market. That’s every mortgage available in the UK to find you the very best mortgage rate and new mortgage deal. This is just the start of what they will do for you, it gets even better!
Once you are happy with the mortgage and your broker has found you the best available new mortgage deal, they will submit your details and the mortgage application to your current lender or a new lender.
Supported through the remortgaging process
The mortgage broker will see the whole process of your remortgage right through to completion. They will liaise with you, the mortgage lender, and the conveyancer, making the whole process far easier and smoother.
Frequently Asked Questions
Will I need to have a valuation on my property?
You will need a valuation on your property. In recent years mortgage lenders have been carrying these out using desktop valuations or occasionally they may do a ‘drive-by’ valuation survey. A ‘drive-by’ means a surveyor will literally take a quick look at the outside and make sure that are happy with the valuation and standard of the property.
Depending on how much you are looking at borrowing the mortgage lender will sometimes want a physical valuation survey. This means you will get a call from a surveyor who will make an appointment to come and inspect your property. This usually takes less than an hour and is just a little more detailed inspection for the mortgage lender.
Will I need a solicitor to remortgage?
When you bought your property you will have used the services of a conveyancing solicitor. It is similar when you remortgage although there is a lot less the conveyancer will need to do as you already own the property. The conveyancer’s main job role is to use the money raised with your new mortgage lender to pay off your old lender. They will also bank transfer any money you have raised for home improvements or the consolidation of debt.
What fees can I expect to pay when I remortgage?
Let’s start off with some good news! It is very easy to remortgage at no cost to you and occasionally at a profit! Although mortgage lenders will charge valuations fees, legal fees, and arrangement fees most do offer incentives to new customers to avoid this.
This is where your free mortgage broker will come into their own! Not only will they search the whole market to find you the lowest rate but they will also search to find you the best new customer incentives. Most can be done at no cost to you and a few even offer small cash backs of £250 on top of free incentives so you could even make a profit!
Can I reduce my monthly mortgage repayments when I remortgage?
There are two ways you can save money on your monthly payments.
The first is by getting a lower interest rate offered by the new lender which is better than the rate on your current mortgage.
The second is to increase the term. Increasing the term on your new mortgage will reduce your monthly repayments, however, over the term, you will end up paying far more in added interest.
How long does it take to remortgage and release equity?
The average remortgage takes 8 weeks if you are organised and have all the paperwork and information to hand that will be needed. If you are remortgaging with your existing lender and releasing equity alongside your mortgage renewal the extra funds raised will be sent to you through bank transfer by your conveyancer with the mortgage offer.
How soon after getting a mortgage can you remortgage?
The soonest you will be able to remortgage is 6 months before your rate ends however, tread carefully. Unless you are on a variable rate there is a good chance your current mortgage will have early redemption charges. When you took out your existing mortgage with your current lender you will have received a mortgage offer. On the mortgage offer, it will show clearly early repayment charges. These can be significant therefore take care and get your mortgage broker to have a look before you make any costly mistakes.
Early repayment charges are often referred to as ERCs
Do I need a good credit score to remortgage?
When you remortgage every lender will check your credit report details and credit score with credit reference agencies before offering you a mortgage. Most lenders use Experian and or Equifax and you will need a reasonable score. If you are concerned about your credit score at all we would suggest you get a report from Experian and then show it to your mortgage broker before you get a mortgage application with a new lender underway. Also read this blog to learn what to avoid to help keep your credit score healthy.
How YesCanDo can help you remortgage quickly
Give us a call at YesCanDo Money. We have been established for over 30 years and offer a no-fee whole-of-market UK fee-free mortgage broker service. We are a team of 15 mortgage advisers and managers that are at hand to help you. We look at the overall value of the rate, fixed-rate deals, and incentives.
A mortgage advisor from our experienced team will be able to advise you whether staying with your current lender or remortgaging to a new lender is best for you. What is even better is that we can do both of these for you at no cost! We take care of the whole remortgage process by talking to your current mortgage provider and completing any necessary paperwork right through to your remortgage completion. Our clients love that we use WhatApp to update them through the whole process and we are on hand for any questions big or small making remortgaging a stress-free process.
How long does it take to remortgage certain mortgage lenders?
Below we have written comprehensive guides on how long it takes to remortgage with 7 of the mainstream mortgage lenders.
- 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?
- Can you remortgage with the same lender?
- How soon can you remortgage before your fixed rate ends?