Whatever your reason for remortgaging, you are probably wondering how long it will take.
When you remortgage you move your loan from one lender to another. This can enable you to switch over to a better mortgage, and possibly borrow some more money at the same time.
Finding a new mortgage shouldn’t take too long but what happens then? From applying to completion can take around 4-8 weeks. In between there’s all sorts of legal work, checks and processes.
Always try to allow plenty of time to find the best deal and overcome any unexpected hiccups.
Here’s our guide to how long it takes to remortgage your home.
What exactly is a remortgage?
You can only remortgage if you are currently a homeowner, with a main mortgage.
Remortgaging is the process of moving your mortgage, from one lender, to another.
So if you originally took out a mortgage with Halifax, it could be possible to remortgage to the Nationwide.
You apply for a new mortgage with Nationwide. When this is ready, the money is used to completely repay the Halifax.
You then make your monthly repayments to Nationwide.
Why do people remortgage?
Each borrower will have their own reasons. The most common is to switch to a better interest rate and/or borrow more money.
A remortgage may be needed to consolidate other debts, or to move to a lender with more flexible criteria.
If you break up with a partner then a transfer of equity remortgage could allow you to transfer a joint mortgage to one person.
How long does it take to remortgage?
Ideally, when you remortgage you should allow up to 3 months, from start to finish.
Most of the time an average remortgage application will take 4-8 weeks. But occasionally there can be hitches and glitches that delay the process, and many of these cannot be planned for.
In the next section we will go through the mortgage process in detail.
But for now, just imagine that a remortgage is in two separate parts:
PART
This is the new mortgage.
The new lender you are applying with needs to complete quite a few different checks and assessments. Plus your property needs to be valued.
PART
This is the legal work, or conveyancing.
Only a solicitor can do this work. It happens behind the scenes mostly and is not as in-depth as when you originally bought your home.
Both of these have a lot of moving parts. There’s many different boxes to check and bits of information needed.
A delay can come from either section, but generally it is the new mortgage that can slow things down. The main reason for this is that you already own your home, so the legal work needed is not as comprehensive and there are no other parties to deal with, or chase.
But some lenders are more thorough (fussy) than others, while a number of lenders are just slow. If you have a specific timeframe in mind then let your broker know before you choose your remortgage lender. It may be necessary to go with a company that is more efficient, rather than the cheapest.
CONTACT A REMORTGAGE EXPERT
If you wish to investigate your re-mortgage options we can put you in touch with a fully qualified whole of market mortgage broker.
The remortgage process
The amount of time and effort you have to commit will depend on whether you are using a mortgage broker.
A broker’s job is not just to search tirelessly through hundreds and thousands of different mortgages until they find the one hidden gem that’s right for you.
They can also help you get together the right paperwork (and check it) and deal with any issues that arise during the whole process.
Yes, you will need to pay the broker a fee for this work.
But by doing so you will not have to deal directly with the majority of hassles that can arise and you get access to the best lenders.
Here are the key steps involved when remortgaging your home.
RESEARCH
There’s a considerable number of different mortgage deals available to someone looking to remortgage.
Before you do any research, find out what your existing lender can offer you. Typically they may have two or three different options.
Then it’s time to compare these offers to those in the wider market. Doing this can take some time, and you also need to include any fees and charges into the calculations.
If you use a mortgage broker then they will do this work for you. Don’t forget that a whole of market mortgage broker has access to the widest possible range of lenders, plus some deals only available to brokers.
Once you have found a suitable deal it’s time to move to the next stage.
DIP
A DIP, or Decision in Principle, is like a ‘mini’ mortgage application and is done with a specific lender.
It’s not compulsory to apply for a DIP, but many people do, just to check their options. A DIP includes a soft credit check and a basic affordability assessment.
However, whilst very useful, a DIP is not a guarantee that your full application will be approved.
APPLY
Once you are happy to go ahead, it’s time to make a full mortgage application to the lender.
Your mortgage broker can do this for you to save time.
You’ll need to find a few basic documents first:
Proof of ID: Normally your driving licence or passport.
Proof of address: A recent utility bill or bank statement.
Bank statements: The last 3-6 months. (Why do mortgage companies need bank statements?)
Expenditure: A breakdown of your monthly outgoings and financial commitments.
Proof of earnings: For employees this would be the last 3 payslips and a P60. If you are self-employed then you will need 2 years of accounts or SA302.
UNDERWRITING
When you send a mortgage application to a lender they need to assess it and carry out some checks. This process is known as ‘underwriting‘.
The lender’s underwriting department will carry out a credit check and credit score. They will also look into your debt-to-income ratio, this compares your loan payments to your gross income.
If these initial checks look OK then the lender will instruct a valuation of your property. As you already live there, many lenders will make do with a virtual valuation, which is basically an estimated value. If you are applying for a loan to value over 75-80%, or your property is old or of non-standard construction, then a physical valuation is more likely.
During this stage, it’s possible that the lender may have some questions, or require further information from you. Your broker will help with this. Obviously, it’s a good idea to reply to these requests asap as any delay will cause the overall timeframe to increase.
Once the underwriting phase is over, and the lender is happy, then they will issue your mortgage offer.
LEGALS
A solicitor, or conveyancer, will be needed to work on the legal side of a new mortgage. When remortgaging, it’s sometimes possible to use the lenders’ solicitor, at a reduced cost.
There’s broadly three elements to this:
- The current mortgage lender. They need to liaise with your current lender so that this mortgage can be fully repaid and the legal charge removed from your property.
- The new mortgage lender. They need to secure the new mortgage to your property with a first legal charge.
- The property. Some basic checks to make sure you are actually the owner, and to see if there are any other charges or restrictive covenants in place.
Most of this is straightforward and rarely causes any issues or delays. Obviously without a property chain there are no other parties to interfere with the progress.
If you have an unusual property then this may raise further questions or enquiries, which will take additional time. Examples of these would be properties with extensive land, those with habitable outbuildings, church conversions, flying freehold or houses with a public footpath.
COMPLETION
Completion is the final stage and is handled by the solicitor. Completion can only take place when the mortgage has been offered (accepted), and the legal enquiries have been satisfactorily answered.
The solicitor will first request the mortgage money from the new lender. Once received this will be forwarded on to your current mortgage company, to repay their loan in full.
This procedure will include removing one mortgage charge and then registering a new one.
If you are borrowing more money on your mortgage, perhaps for debt consolidation or home improvements, this will be sent to you by the solicitor.
How to speed up the process
When remortgaging, some elements are out of your control.
But there are things you can do to help the overall process and minimise delays.
Before you apply you need to get mortgage ready: make sure all of your paperwork and financial information is organised and to hand. Ask your broker what documents will be needed, and allow time get this together.
It can sometimes be hard to know what your credit status is. So it makes sense to obtain a copy of your credit report, and for any other borrowers, to check that everything looks right.
In the months before you apply don’t apply for any new credit, particularly expensive Payday loans, and try to curb any excess spending.
Avoid changing jobs. Easier said than done, but changing your job a few months before applying for a mortgage can make remortgaging more difficult.
Reply to queries and requests immediately.
If you need a quick remortgage then let your broker know asap. They will be able to choose a lender that has fast processing times and the capacity to receive new applications.
What’s the fastest way to remortgage?
The fastest way to remortgage is via a mortgage product transfer with your current lender.
How long does a remortgage with the same lender take? These often take just a few days to a week to setup.
Product transfers are quicker because there are no:
- Income checks
- Credit checks
- Affordability assessments
- Valuations/Surveys
- Legal enquiries
Because of this they also have the lowest fees, as there’s no solicitor or surveyor needed.
BUT…
When you remortgage with the same lender you won’t be able to:
- Borrow more money
- Change who is on the mortgage
- Alter the repayment method or term
What can cause delays?
On average, a remortgage will take 4-8 weeks once you have made your application.
But some applications will take longer and there are various reasons why a remortgage can be delayed.
LENDER
Some lenders are slower than others. If a lender has just launched a market leading fixed rate, they will be overrun with new applications, and this will slow the processing time down.
Some are just always slow!
🙄
CREDIT ISSUES
The new lender will use a credit reference agency to check your credit report and formulate a credit score. Any issues here could either delay your mortgage or result in a rejection.
PAPERWORK
Missing paperwork will cause delays. Find out what’s needed in advance and get everything organised. With payslips and bank statements, lenders need consecutive dates, without gaps.
COMPLEXITY
If something about your situation is more complex, or non-standard, then it will usually take longer. Recent changes in employment or unusual properties will trigger extra questions.
VALUATION
With a remortgage the lender is mostly interested in the value, and in many cases they won’t even ask for a physical inspection. Occasionally this can lead to a discrepancy in figures. You think it’s worth one figure, and they this it’s worth another. This is only really an issue where you need a higher LTV.
When is the right time to remortgage?
Most people choose to remortgage because their current interest rate deal is about to end. When this happens, your rate will ‘revert’ to the lender’s SVR (not good).
Aim to speak to your mortgage broker at least 3 months before this date. This allows enough time to research the best deal and then apply for it.
Even if your new mortgage is approved really quickly, mortgage offers are valid for six months.
So you can sit back and relax, your work is done!
Why is timing important?
You will want to time your remortgage just right so that; it’s not too early and you end up paying early repayment charges, and it’s not too late so that you spend time paying the much higher standard variable rate.
Don’t worry about the exact date this needs to happen.
Presuming your mortgage has been approved, your broker will not start the new deal until the current one has finished. Ideally this would be the day after any ERCs end.
Ready to explore your options?
If you’re just about to start your mortgage journey and could use the guiding hand of a professional, don’t hesitate to reach out to a reputable mortgage broker.
An independent mortgage broker can access over 100 lenders on your behalf. They will make the process smoother and more profitable than going it alone.
Keep reading, keep asking questions. The more you know, the better decisions you can make.
Find a mortgage broker
FREQUENTLY ASKED QUESTIONS
When you remortgage your home, there are a lot of things to consider. You need to make sure that you’re getting the best deal on your mortgage, and that you’re doing everything you can to secure your financial future. But one important thing to think about is whether you need a solicitor when remortgaging.
You definitely needed a solicitor or conveyancer when you bought your home but do you still need one even though you are not moving?
When you remortgage, you are essentially taking out a brand new mortgage to replace your current one.
This process can be quite complex, as it entails transferring the balance of your original mortgage over to the new lender, and there are a number of legal documents that need to be drawn up and agreed upon in order for everything to go through smoothly.
For these reasons a solicitor is needed. However, it might be possible for you to use the lenders solicitor, which should be a lot cheaper.
A mortgage buyout involves removing someone from both the title deeds of the house and the mortgage.
If the property is currently owned 50/50 and you buyout your partner, the joint mortgage will be transferred to one persons name, you. You then become the sole owner with 100%.
Your partners 50% ownership will have a value and that needs to be paid over to them as part of this process. In nearly all mortgage buyouts this payment will be made as a lump sum, and many people use a capital raising remortgage to fund this payment.
The official term for buying someone out is ‘transfer of equity‘ and a remortgage is convenient way of doing this.
Remortgaging is a convenient opportunity to borrow some extra money, by increasing your mortgage.
This extra amount will have the same interest rate as your main mortgage and can be used for: home improvements, new car, debt consolidation etc.
Borrowing extra money should not cause any delays, providing the lender is aware and happy with the reason. Extra paperwork may be needed. For example if you are building an extension, or a loft conversion, the lender may ask to see the quote and associated plans.
It’s easy to assume that if you’re borrowing the same amount, you won’t need to provide proof of your income. After all, you’ve been keeping up with payments for years, right?
While that may be true if you stick with your current lender (product transfer), any new lender will want to see that you have a steady income and can keep up with repayments.
Yes, there are a few lenders that allow you to borrow extra money to pay off unsecured debts.
Debt consolidation is a financial strategy that involves taking out a new loan to pay off several smaller debts. The idea is to combine multiple outstanding debts into a single, larger loan with a lower interest rate and a more manageable monthly payment. This can be a good option for people who are struggling to keep up with multiple debts and want to simplify their finances by consolidating them into a single arrangement.
The process of remortgaging involves replacing an existing mortgage with one from a new lender.
But is a cash deposit necessary when applying for a mortgage with a new lender?
When remortgaging, you should not need a deposit as it involves exchanging one mortgage for another without moving home. The equity you have built up in your home is effectively the ‘deposit’, and is used to calculate the LTV.
A day one remortgage is a mortgage option that can be used shortly after buying a property, and differs from a traditional remortgage in that the property owner’s name may not yet be properly updated at Land Registry.
In order to qualify for a remortgage, many lenders enforce the “six month rule” which requires the owner’s name to be on the Land Registry for a minimum of six months.
Fortunately, there are lenders who provide mortgages without this requirement, but applicants typically must present evidence of ownership, such as the title deeds and a signed property purchase agreement, to be eligible for the loan option.
Yes this is possible.
If you want to rent out your own home you will need to change the mortgage. Switching to a buy to let mortgage will allow you to do this.
