How Long Does a Remortgage Take?

How Long Does a Remortgage Take?

This page was last updated on 1 May 2022

How Long Does a Remortgage Take In 2022?

Remortgaging is the process of updating your current mortgage situation. It’s a way of getting a new mortgage with a different interest rate or with more favourable terms.  Remortgaging is typically done when your current mortgage period is coming to an end, and you think that you can obtain more favourable interest rates. 

When you remortgage, you take out a new loan to pay off your old one. This new loan is usually for the same amount as your old one, but it may have a different interest rate or terms.

Why would you want to remortgage?

People find themselves wanting to change their current mortgage situation for a number of reasons. Your property might now be worth more than when you bought which would affect your loan to value ratio. You could have experienced a significant change in your life, for example, having a child or starting a new job with an increased income.

Remortgaging might give you the opportunity to free up money to spend on a big purchase. You may be able to get lower interest rates than your current mortgage or a different repayment period, which could save you money in the long run.

You should have the opportunity to change your repayment plan in line with your life changes, and remortgaging can offer this opportunity.

Disadvantages of Remortgaging

There are a few disadvantages to remortgaging, so it is not a decision that should be taken lightly. Firstly, you might have to pay fees to your new lender, which could be a significant amount. You’ll also need to bear in mind that you may be charged an early repayment fee to your current lender if you attempt to repay your loan before the end of the term. A mortgage advisor should be able to help you avoid these risks. 

Additionally, when you remortgage, your home is technically seen as being security for the new loan. This means that if you can’t keep on top of your repayments, you could risk losing your home.

Finally, it can take time – typically around six weeks – to go through the remortgage process, so it’s important to bear this in mind if you’re planning on switching mortgage lenders as you don’t want to get your timing wrong.

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How does remortgaging work?

You can go about remortgaging in one of two ways.

Product Transfer

This is when you remortgage with the same mortgage lender, but you switch the rate or the term.

The process of product transfer is much simpler than taking out a new mortgage. You won’t have to go through any eligibility and affordability checks as you have already been through all of this with your current lender. The process can be very quick, and you will save time and money on solicitor fees.

Changing Mortgage Lender

If you do not want to stay with your old lender, you will need to find a different lender from which to take out a new mortgage. You can find a mortgage lender by checking out your local high street, or you might use comparison websites to compare different remortgage deals from lenders that have branches in your area. Remember to always do your own research to find the best mortgage deal for your personal circumstances. 

You will need to provide the mortgage lender with details of your existing mortgage, including the remaining balance and interest rate. Your remortgage application will be subject to the same affordability tests as any other application for a fresh mortgage, so you will need to undertake a credit check and an investigation into your other debts before you can secure your new deal.

 If you are self-employed, you will need to provide proof of earnings such as tax year overview documents, the last two years trading accounts or an accountant reference alongside your credit score. 

Why is timing so important when you remortgage?

By remortgaging, you will not change your remaining mortgage term or the length of time left to run on it. Most mortgage lenders have early repayment charges, which means that you will be charged for leaving early. The other side to this is that you will want to spend as little time as possible on your lender’s SVR once your fixed period has expired. Therefore, if you want to save money and protect your credit score, you should plan your remortgaging moment carefully. 

If you do want to remortgage, make sure that at least five weeks remain before the end of your existing mortgage term – this should be enough time for a remortgage application to go through without encountering any further fees.

How long does it take to remortgage?

So how long does it take? Unfortunately, this is not a simple question to answer. The application process normally takes at least two weeks from beginning to end however it can occasionally take up to a couple of months. It all depends on how easily you can get the paperwork together.

If you are changing your mortgage lender, there will be a significant amount of legal paperwork to complete. You will need to leave time for the conveyancers to verify your identity and the fact that you own the property. They will also need to register the new mortgage provider with the Land Registry and arrange the release of the funds.

Remortgage process timescale

Remortgaging can be an intimidating process, but it does not have to take too long if you go about things in the right order. The first thing that needs to happen is a valuation, which will allow you and your mortgage broker to work out how much they think your home is worth on today’s market. This information then allows them to find the best deals available for you, as well as come up with a payment plan for this new loan deal.

Once all of these calculations are done, the application form must be filled out and submitted by either yourself or your mortgage broker, depending on who has been appointed by the new mortgage lender. You should aim to do this a few months before your fixed-rate period ends, but you can do it even earlier as some lenders will hold a mortgage offer for up to six months. 

Once you have an offer from your new mortgage lender, your conveyancing solicitor will begin to carry out the conveyancing process. They may request a redemption statement from your current lender to determine how much more money you need to pay back. 

Once this has all been done, there will be a settlement which needs to happen within 20 days after completion, so it is important not to leave things too last minute.Your new lender will contact you with your new payment dates and amounts. At this point, the Land Registry would need to be updated on the value of the loan secured on your property. 

You should be aware that remortgaging can take anything from less than a week to more than four weeks depending on how much you want to change and what your current financial status is. It is only complete when your old mortgage is repaid and your new mortgage has begun. 

What is the fastest way to remortgage?

The fastest way to complete this process is to remortgage with your existing lender as you will not need to go through eligibility and affordability checks, and there is much less legal work involved. 

However, you may find that you get better deals when you remortgage through a new lender. In this case, the application will be treated like your very first mortgage application, and you will have to go through a full underwriting and valuing process.

As long as you have all of your paperwork organised, you should be able to arrange for a remortgage with a new lender within the necessary timeframes. Therefore do not let the length of time it takes to remortgage put you off from securing the best deal for you.

remortgage process timescale

How to speed up the process

There is not a huge amount you can do to speed up the process, so the best thing to do is to be prepared.   

You can use an online calculator to work out how much you can afford to borrow and to find out what sort of mortgage deals you can get. This will speed up the process as you should have a good idea of what type of loan you need.

Check your credit report to ensure that there are no mistakes or information that could adversely affect your application, such as previous missed payments or other loans. You may be able to resolve these problems before moving on to the next step.

Remortgaging is the process of updating your current mortgage situation. It's a way of getting a new mortgage with a different interest rate or with more favourable terms.

An online mortgage calculator will give you an idea of how much you will be able to borrow and what your monthly payments will be. You will need to provide information such as your income, bank statements and how much you spend on things like credit cards and loans, maintenance and pensions. You will also have to state how many people are applying for the mortgage and your reason for applying.

It may also speed up your process to contact a mortgage advisor. This could be useful if you are considering taking out an interest only mortgage. A broker can advise you on the best deals available, but they will usually charge a fee which is taken from the loan amount itself.

How much will it cost?

There are three key costs that you should expect when remortgaging – legal fees, arrangement fees and valuation fees.

The arrangement fee covers all of the expenses involved in setting up the new mortgage, including reference reports, legal work etc. It varies between lenders, so shop around to find the best deal.

how long does a remortgage take

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The valuation fee covers the cost of reporting on the property value, which is done by an independent surveyor. It does not reflect work needed on the house but simply reports whether the current value reflects what you paid for it if it was bought recently. Be aware that some mortgage lenders may offer a free valuation report, and often they will just do a remortgage valuation on the computer, which is called a ‘desktop valuation’. 

You may also be required to pay early repayment charges if you are paying off part or all of your previous loan before the end of the original term, which is likely to be three years. These charges often come in at 5%, so keep this information in mind when choosing your remortgaging deal.

When you apply for a remortgage, lenders will ask for proof of your income and outgoings so that they can check how much you can afford to pay back. Many lenders use this information across all applications, so it is important not to exaggerate figures or forget anything as there are hefty fines for doing so.

How will I know my case has been completed?

Once your remortgage is complete, you will receive a letter from your lender confirming this. You will also be given a mortgage statement that will outline all of the payments you have made and how much you still owe.

The remortgaging process can be lengthy, so you might want to prepare yourself for this. Having an idea of what is involved in the process and how much it will cost will mean that you are not anxiously wondering how long the mortgage application process will take.

How long for remortgage money to come through?

This will depend on a number of factors, such as the type of mortgage you choose and how long the application process takes. Generally speaking, you should expect to receive the money within a few days of the completion date of the remortgage. Given the uncertain timeframes, it is important not to rely on remortgaging as an urgent way of releasing equity or getting tax free cash. 

What happens after I have completed my remortgage?

Once your remortgage is complete, you will need to make sure that all of the payments on your new home loan are made on time. You should expect to receive a statement from your new lender outlining how much is outstanding and when it needs to be paid.

You may also wish to consider whether you want an offset account attached to your mortgage, which can help reduce interest and, therefore lower monthly repayments. 

Additionally, speak with a mortgage broker who can look at ways of reducing the amount of interest that accumulates or even pay off all or part of the remortgaged loan using lump sum investments.

how long for remortgage money to come through

Is it possible to reduce my monthly mortgage repayments when I remortgage?

It is possible to reduce your monthly mortgage payment when you remortgage, and this is a common reason for people to undertake this process.

There are various options available to help remortgaging customers reduce their monthly repayment fees. Some mortgage brokers may recommend ‘offsetting’, which allows customers to hold savings accounts against their mortgage debt which could result in an equivalent or lower monthly repayment fee.

You may also choose to extend the term of the deal if this would mean the total amount repaid came to cheaper than if you had remained with your original loan. Finally, most lenders offer special deals for customers who remortgage at specific times, such as when they have built up a good score on your credit file after making previous payments on time. Doing this means that you could benefit from a lower rate of interest.

How soon after getting a mortgage can you remortgage?

You are usually able to remortgage after around six months of owning your home, which means you can often switch mortgages partway through the term.

This is especially useful if you think that another lender will offer you a better deal because it could help you reduce your monthly payment fees, although there may be some early repayment charges involved. It’s important to note that these rules vary between lenders, so it is worth double-checking with a mortgage broker first before assuming anything.

What happens to my credit rating when I remortgage?

Remortgaging has no effect on your credit rating unless you go over your limit or fail to make your payments on time which would result in an increase in the number of black marks next to your name. So this is one less thing to worry about when it is time to remortgage. 

Make remortgaging easy, get a mortgage broker

When you remortgage, it’s important to get the right deal for you. This can be difficult to do on your own, which is where a mortgage broker comes in. They will know about all the different deals available and can help you find the best one for your needs. They will also help with the paperwork and make sure everything goes through smoothly.

Over 55 and a home owner? Try our equity release calculator and see how much money you can get from your house, tax-free, in 30 seconds

Learn More About Mortgages In The UK

How do mortgages work in the UK?

Buying a home or land is expensive. A mortgage is a financial product that helps people purchase their own home or land.This is especially true for a first time buyer, as it might be the only route onto the property ladder.

The minimum credit score for a mortgage

ou can still be approved for a mortgage to buy a property if you have a poor credit score. However, someone with a poor credit score will probably have a higher interest rate than someone whose credit score is good. Buyers with a low credit score may also need to pay a bigger deposit.

fixed term Contract Mortgages

A fixed term contract is a way of describing certain types of employment. If your current employment contract is due to end after a certain period of time, or after a specific piece of work is complete, you are likely on a fixed term contract. 

how long does a mortgage application take?

After sending off the final application waiting for the decision can be frustrating. Many prospective homeowners ask ‘how long does it take?’ but the truth is the mortgage approval process is always different for each customer.

how long does conveyancing take?

The entire conveyancing process will normally take anywhere between 8-12 weeks, however you should be prepared for this to take much longer depending on your circumstances and wider factors. This articles explores what the timescale involves.

Mortgages if You are bankrupt

There is no hard and fast rule when it comes to what lenders will accept your mortgage application if you want to get a mortgage after bankruptcy. They will lend to discharged bankrupts and consider each case individually. 

what stops you getting a mortgage?

Everyone wants to get the best deal when it comes to buying a home and getting a mortgage when they buy a home. However, being too ambitious can lead to your application being rejected. 

how much do mortgage advisors charge?

Fees for mortgage brokers can be off-putting. A mortgage is an expensive financial product, and often buyers want to save as much money as possible. This might limit their options when it comes to using a mortgage broker.  However, not everyone advisor charges a fee.

IVA Mortgage

When you have an IVA, mortgage acceptance is still possible. However, involuntary agreement mortgage lenders can be hard to find. Typically, a high street company will be more less keen to give you a mortgage. 

Article author

James Lloyd

I am the primary writer and author for Help and Advice, having originally helped start the site because I recognised that there was a need for easy to read, free and comprehensive information on the web. I have been able to use my background in finance to produce a number of articles for the site, as well as develop the financial fitness assessment tool. This is a tool that provides you with practical advice on improving your personal financial health.

Outside of work I am a keen rugby player and used to play up to a semi-professional level before the years of injury finally took their toll.  Now you are more likely to see me in the clubhouse enjoying the game.

Email – james@helpandadvice.co.uk

Linked in – Connect with me 

Frequently Asked Questions

How soon after getting a mortgage can you remortgage?

You are usually able to remortgage after around six months of owning your home, which means you can often switch mortgages partway through the term.

How long for remortgage money to come through?

This will depend on a number of factors, such as the type of mortgage you choose and how long the application process takes.

How much will it cost?

There are three key costs that you should expect when remortgaging – legal fees, arrangement fees and valuation fees.

What is the fastest way to remortgage?

The fastest way to complete this process is to remortgage with your existing lender as you will not need to go through eligibility and affordability checks, and there is much less legal work involved.

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