The chances are 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 deal as early as you can.
Timescales of a remortgage
The average time a remortgage takes is eight weeks. Although it is very possible to complete a remortgage in as little as 4 weeks. The more organised you are with your paperwork the quicker the remortgage will be.
Remortgaging now is a great time to not only grab a historically low-interest rate but also it is a superb 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 rates and best deal at no cost!
Table of Contents
What is the remortgage process?
In the first part of this guide, we will take you through the process of remortgaging. This will allow you to understand what will be done and more importantly what you will need to provide in order to get the remortgage completed as smoothly as possible.
What do you want to achieve from the remortgage?
Great interest rates – One of the main reasons for remortgaging is to take advantage of the interest rates being at a historical low. The chances are that you will be looking at a far lower interest rate than you are presently on and therefore a good saving on your monthly payments.
Home improvements – 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, bathroom or increasing the size of your home by having 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 – 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 or mortgage consultant whether it would make sense to consolidate any of your debts. Either way, you will need to have details of all these on the application.
Paying too much for your mortgage?
Chances are you could save money with a better rate
How do I start my 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! Using a broker like YesCanDo Money can save you the headache of finding the best available deal.
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.
Make remortgaging easy. Get a mortgage broker!
A mortgage broker will search the whole mortgage market. That’s every mortgage available in the UK to find you the very best rates and deals. 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 deal, they will submit your details and the mortgage application to the existing or new lender.
The mortgage broker will see the whole remortgage process right through to completion. They will liaise with you, the mortgage lender and the conveyancer, making the whole process far easier and smoother.
How much does a mortgage broker cost?
Although a lot of mortgage brokers charge for their services it is possible to get a no-fee mortgage broker. All mortgage brokers get paid by the mortgage lenders however you will find that the bigger more organised mortgage brokers do not charge you extra. This will save you anywhere from £500-£1,000!!! These FREE brokers are called no fee mortgage brokers or fee free mortgage brokers.
How do I find a fee-free mortgage broker?
- Ask around and see who your friends or family use.
- Google – “whole of market free free mortgage broker” and you will get a list of mortgage brokers that will be able to help.
- Spend ten minutes making sure they will be able to look after you and give you exceptional customer service. The easiest way to do this is to look at their website and ask yourself “Does it look modern and helpful?”.
- Have a look at their reviews! Facebook and Google reviews are always a good shout. There should be plenty of 5-star reviews.
- Customer service – Do they make it easy to communicate with? Do they use modern digital lines of communication such as Whatsapp (speak to a mortgage advisor on WhatsApp) and Facebook messenger?
Will I need to have a valuation on my property?
You will need a valuation on your property. In recent years the mortgage lenders have been doing these 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 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 get a mortgage?
When you bought your property you will have used the services of a solicitor or conveyancer. It 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 debt consolidation.
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 banks and building societies will charge for 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 and 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!
Is it possible to 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 on your current mortgage.
- The second is to increase the term. Increasing the term on your new mortgage will reduce your monthly payments, 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 releasing equity as part of your mortgage renewal the extra funds raised will be sent to you through bank transfer by your conveyancer.
How soon after getting a mortgage can you remortgage?
The soonest you will be able to remortgage is 6 months before you rate ends / your renewal date, 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 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.
Do I need a good credit score to remortgage?
When you remortgage every lender will check your credit score 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.
Who are the FCA?
All mortgage brokers are authorised and regulated by the Financial Conduct Authority FCA. This is for your protection and to make sure that the service and deal you get is the right one for you. You can find our FCA details in the line at the top of this paragraph.
What to do next!
Give us a call at YesCanDo Money. We have been established for over 30 years and offer a no-fee whole of market mortgage broker service near Havant, Fareham and Portsmouth in Hampshire UK. 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, deals, and incentives.
We will be able to advise you whether staying with your existing provider or remortgaging to a different lender is best for you. What is even better is that we can do both of these for you and at no cost!