How Long Does It Take To Remortgage?

Remortgaging can be a wise choice to get a lower interest rate and lower monthly mortgage payments. It also provides an opportunity to you use your home’s equity for things like home improvements or paying off debts. But how long does the remortgage process take and how can you speed it up?

What is a Remortgage?

Remortgaging involves switching your existing mortgage to a new one, whether that be because your current deal has come to an end or you want to borrow more for home improvements. The remortgaging process usually takes around 4 to 8 weeks and using a mortgage broker can speed up this process.

What is the Remortgage Process?

The remortgage process follows the same process as your original mortgage application, but with two key differences:

• Your property will already be confirmed as mortgageable
• The conveyancing process is much simpler and more streamlined

The remortgage timeline is as follows:

Review mortgage options

It is advisable to start reviewing your mortgage options 3 months before your current mortgage deal ends. In that time, you will receive a letter or email from your current lender confirming the expiry date and information about any changes in the their interest rates, if you choose to stay with them.

Find new lender

If you don’t want to stay with your current lender, it’s time to search the market for a better mortgage product. A whole-of-market mortgage adviser, like us, will search through all the available lenders to make sure you get the best deal. A mortgage broker can also help you get an Agreement in Principle (AiP), which gives you an idea of whether a lender is willing to lend the amount you need, without a full credit check. Importantly, this step doesn’t commit you to a specific remortgage deal, so you can consider all your options.

Apply for mortgage

After deciding on which mortgage deal to go for, you will need to provide all the necessary documents to secure the new product. A mortgage broker will handle all the paper and complete the remortgage application for you.

Mortgage offer

Typically, you will receive the mortgage offer within 10-15 days of the application date. Your mortgage adviser will also instruct a conveyancer to obtain a valuation on your property to calculate the loan-to-value ratio, which influences the amount they are willing to lend you.

Completion

Once the legal work has been finalised, your old mortgage will be closed and your new mortgage will commence. Any additional funds will also be paid to you.

When is the Right Time to Remortgage?

It is best to speak to a mortgage broker at least 3 months before your current mortgage deal ends. This is plenty of time to complete all the paperwork and ensure a smooth transition between your old and new mortgage deal.

If you know your situation has changed drastically since your original mortgage application, you should contact a mortgage broker as soon as possible. This will enable the mortgage broker to look at the current market and advise on any steps you can take to improve your chances of remortgaging.

If Boon Brokers helped with your mortgage, we will automatically notify you via text, email, and post when there are only 6 months left on your current mortgage. At that point, our broker will get in touch to secure a remortgage offer letter. Getting the offer early, which is usually valid for 6 months, ensures you are prepared for the remortgage well before your current mortgage expires.

How Long Does a Remortgage Process Take?

On average, the remortgaging timeline typically ranges from four to eight weeks. If you are remortgaging with the same lender, known as switching products, or your remortgage is straightforward the remortgage process tends to move swiftly.

A typical timescale for an offer letter to be issued is 5-10 working days. More complex remortgages can take much longer for underwriters to process and could take several weeks to offer.

After the initial consultation with the mortgage broker, they’ll likely categorise you based on your situation and give you an estimated turnaround time based on their expertise.

Keep in mind that while a mortgage broker might estimate how long your remortgage could take, much of the process is beyond their control. Delays can occur if a meticulous mortgage underwriter requests more information, slowing down the process considerably.

Is it Worth Remortgaging Early?

In rare cases, you might think about remortgaging before your current mortgage deal ends, especially if the interest rate is higher than what other deals in the market offer.

When remortgaging early you should be aware that there may be an Early Repayment Charge payable if you exceed your overpayment facility. Sometimes the amount charged can exceed any savings you make by remortgaging early.

To check if you have an Early Repayment Charge you can call your lender and ask or check your original mortgage documentation. Early Repayment Charges are highlighted clearly within your mortgage terms and conditions.

How Long Does a Mortgage Offer Last?

Mortgage offers come with varying expiration times. Typically, they are valid for 6 months. Once a mortgage offer is issued, it’s legally binding for the lender during that time. However, it becomes legally binding for you, the borrower, only when you formally accept it.

You can extend your mortgage offer if your situation remains the same or improves since your first application. But if there’s a negative change after the initial offer expires, the lender isn’t obligated to extend it. If they do agree to an extension, you usually get 1-3 more months with the same mortgage product.

What Happens if I Don’t Remortgage?

If you don’t remortgage when your current mortgage deal ends, you will be reverted to the default Standard Variable interest rate.

Standard Variable Rates (SVRs) are flexible interest rates set by lenders at their discretion. Since lenders can determine SVRs independently, without considering broader economic factors, these rates are usually higher than the competitive rates provided during your initial mortgage term.

To avoid the SVR, most borrowers will remortgage onto a new mortgage product and benefit from the lower more competitive interest rate.

Speed Up the Remortgage Process with a Fee-Free Mortgage Broker

A mortgage broker can streamline the remortgage process and remove a great deal of stress from your shoulders.

Crucially, if you build a relationship with a reputable fee-free broker, like Boon Brokers, you will not need to pay any broker fees when a remortgage is required. Since people usually remortgage multiple times throughout their mortgage term, not paying a broker fee each time (averaging £500 in the U.K according to the government’s Money Helper service) can lead to saving thousands of pounds over your mortgage journey.

Boon Brokers is a Whole of Market Mortgage, Insurance and Equity Release Brokerage. We provide fee free no-obligation advice. Contact us to book your remortgage consultation today.