How Long Does It Take to Remortgage?

Time is of the essence in property, so it pays to be fully up to speed with the processes you may encounter.

Remortgaging is a property process that can take time, but do it right, follow our guide, and all should run smoothly. Typically, it takes 4-8 weeks to remortgage, but things can slow it down, and in some cases, speed it up. Conveyancing, for example, can be a strain on the timeline, but if you’ve completed all the other steps in a timely manner, you could be reaping the rewards of a new mortgage deal within just a few weeks.

Let’s have a look at the remortgaging process and how long it takes so you can keep your property plans on track.

What does remortgaging mean?

Remortgaging is when you switch to a new mortgage lender to take advantage of a better deal. You can do this with your current lender, but this is known as a product transfer rather than a remortgage.

Homeowners typically remortgage when their current deal is approaching its end so they can seamlessly move from one deal to another, avoiding early repayment charges. To ensure this happens, it’s advisable to start hunting for new mortgage deals around six months before your current deal ends.

The remortgaging timeline

We’ve mentioned that it could take around 4-8 weeks for you to successfully remortgage, but plenty of work needs to go in before that too. 4-8 weeks is simply the average time it takes to remortgage from applying for a mortgage to getting approval.

Collate all your existing mortgage paperwork

Before you remortgage with a new lender, you’ll need to gather all your mortgage paperwork for your current deal. You’ll need to check how long is left on the current deal, whether there are any early repayment charges, and what the remaining balance is.

Shop for new mortgage deals

With your current deal nearing its expiry, your lender will start to reach out to offer new deals, some of which may be quite appealing, but there is always something better out there! Start approaching mortgage brokers or lenders directly to see what is on offer. Do this sooner rather than later, preferably while you have 3-6 months left on your current deal. This way, you can move from one deal to another without having spent any time on the SVR of your current lender.

Research how much remortgaging costs so you can get a clearer understanding of any fees you may encounter. It could end up that you spend more on this new deal compared to a product transfer with your current lender.

When you’ve found something that you think aligns with your budget and goals, approach the lender or instruct your broker to issue an agreement in principle.

Secure an agreement in principle with a new lender

If your broker has helped you find a great deal, or you’ve sourced one yourself, you’ll want to get an agreement in principle in place. This isn’t your new mortgage offer, but it will give you a good idea of what you can borrow and how much it will cost. This can be a quick process, and you should have an answer in minutes. You can apply for an agreement in principle or leave it to a broker if you prefer.

Applying for the new mortgage

With an agreement in principle in place, you can now complete the official application process. As you are moving to a new lender, the process is a little slower than if you were sticking with your original lender. The good thing is, with an AIP in place, you are already part-way there.

Before completing the application, double-check that you have everything the lender requires to officially review it. This is, in effect, a brand-new mortgage application, so all the information you gave your initial lender will be needed again. This includes:

• Proof of income (typically 3 months of payslips)
• Proof of expenditure
• ID
• Proof of current address

You might also be asked for copies of utility bills and other financial commitments so the lender can double-check your affordability.

Take some time to ensure that everything the lender asks for is carefully collated. If you followed the initial step, a fair chunk of your paperwork will already be in place. This can be a speedy process, but occasionally the lender may ask for clarification on certain issues and require more evidence or information. This can slow remortgaging down, so try to prepare as much as possible in advance.

The valuation

The lender will want to ensure that the amount of money being requested is a fair reflection of the property value. This is for their own security. Should you default on payments, they want to know that, if they need to sell the home, they can get their money back. If you are trying to borrow too much, they might cancel your application and ask you to apply for a smaller amount, which could see you pushed onto higher interest rates or different terms than those you hoped for.

The decision

The lender reviews the application and all your supporting documents against their valuation of the property. If all seems affordable, they will be happy to lend. However, as you might recall from your initial mortgage, lenders sometimes want to dig a little deeper.

This is known as a referred application, and it’s where the lender hasn’t approved or denied your application. They simply want a little additional information before making a decision.

Unfortunately, applications for remortgaging are sometimes denied, despite the same lender previously giving you an agreement in principle. The reasons can vary, but it could be more indicative of the current market rather than anything you have done.

If you are fortunate enough to have your application approved, you’ll have seven days to decide if this is the mortgage you want to proceed with. It’s worth noting that you can’t actually go ahead with your remortgaging until these seven days have passed.

Conveyancing

This is possibly the slowest-moving aspect of how long remortgaging takes. You may be waiting two weeks, potentially even a month, for conveyancing to be completed. This is the legal part of the remortgaging process and sees the mortgage move from one lender to another. You need to hire the conveyancer yourself, so you should do this as soon as your mortgage is approved. Some lenders will include conveyancing as part of an incentive to choose them. Just be aware that the costs for this are probably factored into your arrangement fees.

Can you make remortgaging faster?

There are a few things you can do that can help speed up the remortgaging process. The most important one is to have all your paperwork prepared in good time and be quick to answer any questions the lender or broker may have. Failing to prepare in good time will only cause the process to face unnecessary delays.

Also, consider how much you want to borrow. If the amount is quite large and presents the lender with more risk, they may want more information from you or dig into your credit history a little deeper.

Ultimately, how quickly the process works is down to you. If you can provide the correct information, answer questions, and match the lender’s criteria, nothing should slow you down from remortgaging.

Should remortgaging not be something you are considering, you might instead be looking to sell. Why not speak to us? Our team at SellHouseFast.uk ensures speedy house sales for all properties in the UK. We buy homes for cash, regardless of location, condition, or type, meaning that you’ll always get a sale. Call our fast sale experts today to find out more.