How long does a remortgage take?

Last updated: July 2024 | 3 min read

The remortgage procedure generally requires four to eight weeks for completion following your application submission. Timelines may vary depending on many factors as discussed in this article. 

In the landscape of mortgage types in the UK, there are numerous options to choose from.

What is remortgaging?

Remortgaging involves replacing your current mortgage deal with a new one, either with your existing lender or a new mortgage provider.

This process can offer financial benefits such as lower monthly repayments, but its duration impacts these advantages.

You can make informed decisions and maximise benefits by learning about the timeframe of a remortgage and the factors that can extend or shorten it.

Time sensitivity in remortgaging

The length of a remortgage processvaries, ranging from a few weeks to a few months. This duration is significant for those looking to capitalize on lower interest rates or needing to quickly access equity from their property.

In the context of fluctuating market conditions, the speed of completion can affect the rate you secure and the overall cost savings. Learn about the usual time it takes for securing a mortgage offer.

Aligning with personal financial timelines

Remortgaging is often timed with the end of an existing mortgage deal. Aligning the completion of a remortgage with this expiration avoids higher standard variable rates.

For individuals managing other financial commitments, the timing of a remortgage can be critical in maintaining a balanced personal budget and avoiding delays in monthly payments.

Impact on future financial plans

The length of the remortgage process can influence future financial opportunities. Delays may affect the ability to invest in home improvements, consolidate debts, or make other significant financial decisions.

Timely completion supports a smoother transition to new financial arrangements and the realisation of planned objectives.

The remortgage process

Preparing for remortgage

Gathering your financial documents kick-starts the remortgage process. This includes your most recent bank statements, payslips, and proof of identity, such as a valid UK passport. Ensure these documents are current and accurately reflect your financial situation.

Finding the best mortgage deal

Securing a better deal is often the main goal of remortgaging. Researching the market is key. Compare interest rates, mortgage terms, and any additional costs across different lenders. Be vigilant about the terms and conditions of each offer.

Submitting the mortgage application

When submitting your mortgage application, accuracy is paramount. Ensure all information provided is up-to-date and factual. This includes details about your current job, income, and any outstanding debts. Inaccuracies can lead to delays or even application rejection.

Learn more about how to make a successful mortgage application.

Mortgage assessment and valuation

Lenders will assess your application and conduct a property valuation. This can be a physical inspection or a desktop valuation, depending on the lender's policy. The valuation determines if your property provides adequate security for the loan.

Legal aspects of the remortgage process

The legal side and conveyancing involve transferring the mortgage deed from your existing lender to the new one. This step requires a solicitor or a licensed conveyancer.

They will handle the land registry, check for any legal issues with the property, and manage the transfer of funds. Read more about choosing between a conveyancer and a solicitor.

Timeline for different stages of remortgaging

Initial preparation and agreement in principle

Remortgaging begins with initial preparation. You, the homeowner, must gather pertinent documents. This collection includes bank statements, proof of income, and identification. Such preparation lays the groundwork for the next step: obtaining an agreement in principle (AIP). Most lenders offer this non-binding indication of how much you can borrow. This takes a few days to a week.

We also have a more detailed article about AIP.

Securing a mortgage offer: how long it typically takes

This step involves a more detailed examination of your financial situation. Lenders scrutinise your credit report, employment status, and financial commitments.

They also conduct a property valuation. The entire process, from application to receiving a formal mortgage offer, can span from a few weeks to a couple of months. The speed depends on the efficiency of your mortgage broker, the lender's workload, and the complexity of your financial situation.

Finalising the remortgage

The final stage, completion, is where the new mortgage deal is formally established. Legal work, including land registry updates and liaising with previous and new lenders, plays a big role.

If you're changing lenders, the legal work involved can prolong the process. Typically, the completion stage takes between one and four weeks, depending on the efficiency of the conveyancers and the complexity of the transaction.

Common delays and how to avoid them

Early repayment charges and their impact

Early repayment charges (ERCs) often catch homeowners off guard during remortgaging. These charges apply when you repay your mortgage early, during a fixed or discounted rate period.

Understand the terms of your current mortgage deal thoroughly. ERCs can be a significant expense, offsetting the savings from a new mortgage deal.

To avoid this pitfall, carefully review your mortgage agreement for ERC clauses. Consider waiting until the ERC period ends before remortgaging.

Alternatively, calculate if the savings from a new deal outweigh the cost of ERCs. Remember, a mortgage broker can assist you in this evaluation, ensuring you make a financially sound decision.

How changes in mortgage rates can affect timelines

Mortgage rates fluctuate, influenced by economic factors and the current market value of properties. These changes can impact the remortgaging timeline, especially when switching to a new lender.

A rise in interest rates might prompt quicker processing by lenders, as homeowners rush to secure better deals.

Conversely, lower rates might slow down the process due to increased application volumes. To stay ahead, keep an eye on interest rate trends. Contact your mortgage broker early if you anticipate favourable rate changes.

Timely submission of your remortgage application can help you capitalise on beneficial rates before they shift.

Strategies to speed up the remortgaging process

Working effectively with a conveyancing solicitor

Your conveyancing solicitor plays a vital role in the remortgaging process. To speed up proceedings, maintain open communication with them. Ensure they have all the necessary information about your mortgage application and property.

Prompt responses to their queries can reduce delays. Check the property's title and prepare the transfer deed.

Ensuring all documents are in order

Timely, document readiness will lead to a swift remortgaging process. Gather and check all required documents early.

This includes your identification, proof of income, bank statements, and a recent utility bill. If you're self-employed, have your tax returns and business accounts ready. Double-check for accuracy and completeness.

Errors or missing information in these documents can cause delays. Keeping them organised and readily available for your lender or solicitor expedites the process.

Special considerations for remortgaging

Remortgaging for self-employed individuals

Self-employed individuals face many challenges during the remortgaging process. Lenders scrutinise your income stability more closely. They usually require at least two years of accounts or tax returns.

This thorough review ensures your income is sustainable and reliable. It's wise to prepare these documents in advance. Also, expect a deeper credit check. Lenders may contact credit reference agencies for detailed credit report details. Keep your financial records organised and up-to-date. This will demonstrate financial responsibility and stability.

Borrowing additional money: what it means for your timeline

Borrowing more money during remortgaging can extend the timeline. This additional borrowing requires careful evaluation by the lender. They assess your outstanding mortgage balance, current property value, and ability to repay.

Expect a more detailed assessment of your financial situation, including a credit history review. If you seek to borrow significantly more, the lender might request a new property valuation. This adds time to the process.

To streamline this step, ensure you have all necessary financial documents ready. Having a good grasp of your finances helps negotiate an appropriate arrangement with the mortgage lender.

FAQs

How long does a remortgage take with the same lender vs a different lender?

When you stay with your current lender, the process is often swifter. It can take a few weeks. Switching to a new lender, however, typically requires more time, up to several months. This difference stems from the need for a new lender to conduct thorough assessments, including credit checks and property valuation. Your current lender already has much of this information, simplifying the process.

What can I do if my remortgage is taking too long?

First, regularly communicate with your mortgage broker or lender to stay updated. They can offer specific advice based on your situation. Ensure all your documents are in order, as missing or incorrect information can cause delays.

If you're with a new lender, inquire if there are any outstanding requirements or issues. For those with current lenders, a direct inquiry can sometimes expedite the process.

Can the type of property affect the remortgaging timeline?

Yes, the property type can influence the timeline. Unique properties, like listed buildings or non-standard constructions, may require more detailed valuation, extending the timeline.

Properties in areas with fluctuating market values might also need additional assessment. In contrast, standard residential properties in stable areas usually experience quicker remortgage processes.

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