How Long Does It Take to Remortgage Your Home?

Remortgaging can save you money or allow you to release equity from your property to pay for home improvements, consolidate debts, or even buy a second home. But while it may offer many benefits, how long does remortgaging take? 

You can expect a simple remortgage to complete in around 8 weeks. Given the amount of money you could save by remortgaging and the relatively small amount of effort the process requires, it’s worth considering.

Why Should You Consider Remortgaging?

Remortgaging is when you switch your mortgage to either a new deal or to a different lender. Your new mortgage will replace your old one. There are many reasons why you might consider a remortgage, including:

• Your mortgage is coming to the end of its rate, and your lender is about to put you on its more expensive standard variable rate (SVR)
• You want to lower your monthly repayments
• You are on a variable rate mortgage but want more payment stability
• You want to make overpayments on your mortgage
• You want to release the equity in your home for home improvements, to consolidate debt or a large purchase

When Is the Right Time to Remortgage?

The right time to remortgage your home will depend on your particular circumstances. However, it’s common to remortgage when your current deal is coming to an end. It’s usually a good idea to start the process of getting a mortgage around 2 to 3 months before the end of your deal – however it’s possible to start as early as 6 months before your deal ends. Applying for a remortgage 6 months prior to its expiration means you may be able to lock-in to lower rates in the market rather than waiting to see what happens with the Bank of England Base Rate.

When a deal ends, the lender will move the mortgage to its standard variable rate, which is usually higher than the introductory rate. Rather than just accepting this more expensive rate, you can look to remortgage before your current deal ends so you can move to a better rate immediately.

You also don’t always have to wait until your mortgage ends before moving to a new deal. If your lender is not going to charge you any early repayment fees, you could consider leaving your deal at any point if you can reduce your costs by moving to a different rate. Even with early repayment charges, it can still be more cost-effective to switch.  An experienced broker will advise you of the relative benefits and pitfalls to inform your decision.

How Long Does Remortgaging Take?

How long the remortgaging process takes is often not as long or as complicated as people expect. It typically takes around 8 to 12 weeks to remortgage after you make your initial application. The exact timeframe depends on your circumstances and whether you move to a new lender or remortgage with your existing provider. Lenders treat a remortgage as a new application. Therefore, the mortgage provider will want a valuation of your property and to review your income and expenditure to check affordability. 

Any discrepancies with the property’s valuation can cause a delay, as can the legal and conveyancing process. A remortgage is often quicker if you stay with your existing mortgage lender as it is treated, typically, as a product transfer, and you may avoid the need for any extra legal work.

Why Does Remortgaging Take So Long?

If you choose not to product transfer with your current lender and instead remortgage with a new mortgage provider, it will be treated the same as a brand-new mortgage application. Therefore, it will take a similar length of time as your first mortgage did. The new mortgage lender will want to be certain of your finances and affordability. They’ll also want to be sure of the property you wish to remortgage. Your remortgage application is subject to a full valuation and underwriting process; this is what usually takes the most time when remortgaging. Fortunately, as you aren’t buying a new house, the remortgaging process won’t hold up other people in the chain and solicitors’ searches. However, solicitors are involved in a remortgage.

Do You Need a Solicitor to Remortgage?

You’ll only require the services of a solicitor if you remortgage with a new lender. If you switch to a new mortgage with your existing lender, it’s treated as a product transfer. The lender will already know who you are, so there’s no extra legal work required other than amending the Land Registry data to reflect the value of the loan you have on the property. 

However, if you remortgage with a new lender, they’ll require conveyancing. This will confirm your identity, that you own the property, and will amend your property documents with the new lender and loan amount.

If you need more information from one of our expert advisers, please don’t hesitate to get in touch on 0330 433 2927 or enquire now.