How Long Does Remortgaging Take?

Remortgaging is a process where you replace your current mortgage with a new one. It can help you save money by getting a better deal, reducing your monthly payments, or releasing equity in your property. However, one of the most common questions people have when considering remortgaging is how long it takes. In this article, we’ll discuss the factors that can affect the remortgaging timeline and give you an idea of what to expect.

Factors that can affect how long remortgaging takes

1. The lender’s process The time it takes to remortgage will depend on the lender’s process. Every lender is different, and some may take longer than others to process your application. Some lenders may take longer to check your credit history, income, and employment status, while others may have a faster process. Before choosing a lender, it’s essential to research their process and find out how long it usually takes for them to process a remortgage application.
2. The complexity of your application If your remortgage application is complex, it may take longer to process. For example, if you’re self-employed, have multiple sources of income, or have a history of bad credit, the lender may need to take more time to review your application. Additionally, if you’re releasing equity or adding a guarantor to your mortgage, the lender may need to do more checks, which can take longer.
3. Your property type The type of property you own can also affect how long it takes to remortgage. If you have a leasehold property, for example, the lender may need to do additional checks to ensure that the lease is valid and there are no outstanding issues. Similarly, if your property is unusual or non-standard construction, the lender may need to carry out additional surveys or valuations, which can take longer.
4. Your existing mortgage deal If you’re remortgaging before your current deal has ended, you may need to pay an early repayment charge (ERC). The ERC can vary depending on your lender and the terms of your existing mortgage, but it can be a significant amount of money. Before remortgaging, it’s essential to check if you’ll need to pay an ERC and factor this into your decision. If you do need to pay an ERC, it can add to the overall time it takes to remortgage.
5. Your solicitor A solicitor is essential in the remortgaging process. They will handle the legal aspects of the remortgage, including checking the title and handling the transfer of funds. The time it takes for your solicitor to complete their work can affect how long it takes to remortgage. If you have a solicitor already, make sure they have experience with remortgaging, and they’re available to start work as soon as possible.

How long does remortgaging take?

Now that we’ve discussed the factors that can affect how long it takes to remortgage let’s look at the typical timeline for the process.

1. Researching your options Before remortgaging, it’s essential to research your options and find the best deal for you. This can involve comparing mortgage rates, fees, and terms and checking your credit report. This stage can take anywhere from a few hours to a few weeks, depending on how much research you need to do.
2. Getting a mortgage offer Once you’ve found a lender and a mortgage deal you’re happy with, you’ll need to apply for a mortgage offer. This stage can take a few days to a few weeks, depending on the lender’s process and the complexity of your application. During this stage, the lender will carry out checks on your credit history, income, and employment status. They may also ask for additional documentation, such as bank statements, payslips, and proof of identity. Once the lender has completed their checks, they’ll issue a mortgage offer if they’re satisfied with your application.

3. Valuation and survey After you’ve received a mortgage offer, the lender will carry out a valuation of the property. This is to ensure that the property is worth the amount you’re borrowing and that there are no significant issues that could affect the property’s value or future saleability. The valuation can take a few days to a few weeks, depending on the lender’s process and the complexity of the property. If the property is unusual or non-standard construction, the lender may need to carry out a more detailed survey, which can take longer.
4. Legal work Once the lender has completed their valuation and survey, you’ll need to instruct a solicitor to handle the legal aspects of the remortgage. The solicitor will check the title, handle the transfer of funds, and ensure that the remortgage is registered correctly with the Land Registry. The legal work can take a few days to a few weeks, depending on the solicitor’s workload and the complexity of the remortgage. If you’re using the same solicitor who handled your original mortgage, the process may be quicker as they’ll have access to the previous documents.
5. Completion Once the legal work has been completed, the lender will transfer the funds to your solicitor, who will pay off your existing mortgage and register the new one with the Land Registry. The completion can take a few days to a few weeks, depending on the solicitor’s workload and the complexity of the remortgage. Once completion has taken place, your new mortgage will start, and you’ll begin making payments according to the terms of the new mortgage.

In summary, the time it takes to remortgage can vary depending on a range of factors, including the lender’s process, the complexity of your application, the type of property you own, your existing mortgage deal, and your solicitor. However, as a general guide, the remortgage process can take anywhere from four to twelve weeks, depending on the complexity of the remortgage and the speed of the parties involved.

Tips to speed up the remortgage process

If you’re looking to remortgage and want to speed up the process, there are a few things you can do:

1. Prepare your documentation Before applying for a remortgage, make sure you have all the necessary documentation ready. This can include bank statements, payslips, proof of identity, and proof of address. By having everything ready, you can avoid delays caused by missing documents.
2. Use a mortgage broker A mortgage broker can help you find the best deal for your circumstances and guide you through the remortgage process. They’ll also be able to recommend lenders who have a faster process, which can help speed up the process.
3. Check your credit report Before applying for a remortgage, check your credit report to make sure everything is accurate and up to date. If there are any errors on your report, this can cause delays in the remortgage process.
4. Use the same solicitor If you’re using the same solicitor who handled your original mortgage, the remortgage process may be quicker as they’ll have access to the previous documents and be familiar with your circumstances.
5. Be available During the remortgage process, you may need to provide additional information or answer questions from the lender or solicitor. By being available and responding quickly, you can help speed up the process.

In Summary

Remortgaging can be a great way to save money or release equity in your property. However, it’s essential to understand that the process can take some time, and it’s important to plan accordingly. As we’ve seen, the remortgage process typically takes between four to twelve weeks, depending on a range of factors. By understanding the process and taking steps to prepare, you can help speed up the process and ensure a smooth remortgage experience.

It’s worth noting that the length of time it takes to remortgage can also depend on the lender’s workload and the time of year. For example, some lenders may have a backlog of applications during busy periods, such as Christmas or the summer months. Similarly, some lenders may have longer processing times for certain types of applications or property types. Therefore, it’s worth doing your research and finding out which lenders have a faster process for your circumstances.

In summary, if you’re considering remortgaging, it’s essential to plan ahead and understand the process. By doing so, you can help ensure a smooth and efficient remortgage experience, and potentially save money on your mortgage payments or release equity in your property. Remember to shop around for the best deal, prepare your documentation in advance, use a mortgage broker if necessary, and be available to answer any questions from the lender or solicitor. With these tips in mind, you can help make the remortgage process as quick and painless as possible.