How Long Does It Take To Remortgage?
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The Remortgage Timeline
If you decide to remortgage with a new lender, it will take 4-8 weeks to complete the remortgage process. The day you start the remortgage application with your mortgage broker to the day you get your mortgage offer, it may take anywhere from 2-4 weeks. Your remortgage solicitor then takes around 3-4 weeks for all legal work to be completed.
Staying with the same lender for your remortgage is called a ‘product transfer’ or ‘product switch’ which can be very quick and involve no legal work. A product transfer takes 1-2 weeks. Should I remortgage with the same lender or a new one? is one of our most frequently ask questions, to find the answer let’s look at the remortgage process.
What is a Remortgaging?
Remortgaging is the process of switching an existing mortgage deal with a new one at the end of the fixed term. Clients often choose to remortgage their properties for better rates to save up on their monthly payments.
Some of the common reasons for remortgages are fixed terms coming to an end, settling existing debts, making BTL investments, or home improvements. In recent years with higher mortgage rates, it is important to get the remortgage timing of your remortgage right.
The Process of Remortgage.
Start Comparing
In the current high interest rate market, you will need to plan your remortgage well in advance. You should start the process at least 4 months early to avoid higher standard variable rates.
Always look for the best mortgage rates, but do not ignore the fees and other charges associated with it. These could be arrangement fees, valuation fees, and broker fees. Always speak to a fee free mortgage Broker like MariannaFS who would happily help you cost-free. Check latest remortgage rates here.
Say Hello to a Mortgage Broker
Timing your remortgaging is key and for that you should talk to an independent mortgage broker. Mortgage brokers and advisors know the mortgage market very well and they can find you the most suitable mortgage deal with their ample expertise in the field.
Expert mortgage brokers can save you time by choosing the right lender and the right mortgage deal suitable for you, they will completely handle the mortgage application while updating you with the whole process.
Mortgage Applications
Your mortgage broker will prepare the paperwork and submit the application which involves a credit check, income affordability and a valuation. The application usually takes 1 -3 weeks until the mortgage is approved. Once your mortgage is approved your lender will issue a mortgage offer.
Completing Your Remortgage
Once the mortgage is offered, your lender will send a copy to you and your solicitor or conveyancer. Your solicitor then checks the condition of the mortgage offer and other legal formalities of transferring the property from one lender to the new one. The whole process could take up to 4 weeks.
Once the solicitor has completed the legal formalities, they will complete the remortgage at the end of the early repayment charges from the existing lender.
What is the Quickest Way to Remortgage?
The quickest way to remortgage is to stay with same lender and change the mortgage rate, which is called a product transfer. The product transfer process is very quick compared to remortgaging to a new lender.
While changing the product does not involve an income check, credit check and does not require any legal work, making the process a lot quicker. Staying with same lender does save time but may not be the best remortgage option. Always compare if you should remortgage or stay with the same lender.
What Could Delay the Remortgage?
Remortgaging your property takes a shorter period compared to purchasing the property.
However, it is important to note that many steps are involved in the process of remortgaging your property and the circumstances are different for different borrowers.
Therefore, the time taken for a property to be remortgaged differs from one borrower to another and the legal team who do the conveyancing.
What Paperwork is needed for a Remortgage?
An experienced mortgage broker would help you tremendously, gathering all paperwork required for the remortgaging of your property. The documents required for remortgage would be more or less the same as the paperwork you were asked to give at the time of getting your current mortgage deal.
The key documents you would need for remortgaging your property are:
- Bank statements for the last three months.
- The Utility bill belonging to your current address.
- Income proof as a payslip and P60.
- Company accounts or SA302 & tax overview (in case you are self-employed)
- Proof of ID
- Existing mortgage details.
Depending on your circumstances, your lender may want to see additional paperwork at the time of application.
Key Stages of the Remortgage Process
Stage 1: Preparation for Remortgage at Least 3 Months in Advance
Stage 2: Application & Securing Remortgage Deal
Stage 3: Lender Income Assessment & Valuation
Stage 4: Mortgage Offer Issued
Stage 5: The Legal Work (Conveyancing)
Stage 6: Completion and Change of Rate
Why Should You Remortgage?
There are many different reasons why mortgage holders choose to switch to a new mortgage deal. Here are some of the most important reasons why you should remortgage.
Fixed Rate Coming to an End
Once the fixed term of your mortgage ends, you would normally be switched to a standard variable rate (SVR) where the interest rate is higher. This may lead to you paying more interest over time. Remortgaging to a new deal that provides you with a lower interest rate allows you to extend your fixed-rate term and save potential money spent on your mortgage repayments.
However, always ensure that the costs to be incurred for closing your existing mortgage and getting your new deal approved are less than the benefits offered by the new mortgage deal.
Buying Another Property
If you are thinking to buy another property and are looking for additional funds to help you finance your purchase, you can get your property remortgaged and raise the deposit from the raised equity in your property.
Home Improvement
If you have a plan to do some home improvements to your property, like a new kitchen or adding extensions, remortgaging can help you raise the funds required to do the same forming equity in your property.
Adding or Removing People
If you want to add or remove people from your existing mortgage deal you will need to remortgage the property. As you change the names involved by remortgaging, your lender would want to carry out credit/affordability checks of all parties involved before approving the name change.
Paying Off Existing Debts
On many occasions a remortgage is used to pay off current debt. Always seek advice if you are going to raise funds against your property as you may lose your property if you don’t keep up with monthly payments.
Some FAQs with Remortgaging.
Do I need a Mortgage Broker to Remortgage?
An independent mortgage broker has access to the whole of the market. They would get you the best possible remortgage rate by scanning the whole market, offering a personally tailored result that others simply don’t give. A mortgage advisor will compare all mortgage options which are right for you.
Working with a fee free mortgage broker can benefit you by saving time in finding the right mortgage and saving money on other mortgage and broker fees.
Should I go Direct to Bank?
Your bank can offer remrotgage service but which could be a lot longer than you think. Going direct to bank means you will get a mortgage deals only from your bank not from whole of market. which means you do not know if you have a better deal or not.
Going to a bank direct may save you on broker fees. But working with No Fee mortgage broker like MariannaFS will save you on broker fees and they make sure you do not miss on the mortgage deal. Our team will scan the whole of market including your high street bank.
Do I need a Solicitor?
Remortgaging with a different lender will need legal work which in turn needs a solicitor. But in most cases your new lender will offer free legal service to carry out the work.
But if you choose to stay with same lender doing the product transfer, this does not require the solicitor.
What happens if Remortgage Takes Longer?
If you do not complete the remortgage on time that may push your current mortgage on a higher interest rate. The savings involved in changing mortgage lender may be lost if the remortgage process does not complete on time.
Now you know when it is the right time to remortgage your home, speak to our expert mortgage brokers and let them do the hard work for you.
How long does it take for a remortgage to complete?
Remortgage can take around four to eight weeks from the time mortgage application submitted to lender. If you have a fixed-term mortgage rate that is ending, then you should start the process before 12 weeks to find a new remortgage deal.
Why sometime remortgage taking so long?
In some cases remortgage take longer than usual due to many reasons like property valuation, lender processing delays, Income assessments and legal matters. Remortgage with same lender, a remortgage can be completed in as little as two to four weeks.
Is it hard to get a remortgage if you self employed?
Remortgage is not always easy, but it’s not impossible either. Being your own boss when working as self-employed and thinking to remortgage will requires proving your income proof. Most lenders will want to see at least a year’s worth of audited accounts, while others will ask for two years which can be difficult for the new business.
