Sometimes, the cost of paying for your home can get a little overwhelming. Especially if you have seen your income drop or other circumstances mean you need to free up some cash quickly. One way many people try to get a little more balance is to remortgage. Remortgaging can help you save a little on your monthly payments or release some of the equity in the home.

When it comes to money, time can often be of the essence, so should remortgaging be something you are considering, you probably want to know how quickly it can be done. Much depends on the lender but typically you can see remortgaging your house taking three months from application to completion. However, this is not a set-in-stone timescale, and some lenders can move much faster, others a little slower.

In this blog, we look at remortgaging and how long it can take so should it be an option you are considering you know how and when to proceed.

What is remortgaging?

When you remortgage a property, you apply for a brand-new mortgage but remain living in the same property. You’ll switch lenders in most cases, with the old mortgage being replaced by the new one. This is often done when your current deal is reaching its end, you want to borrow some additional money against your home, or you have found a deal that is more affordable and better suits your needs.

Is remortgaging the same as getting a mortgage?

Pretty much! You’ll follow the same processes as when you applied for the mortgage that secured you the property in the first place. This will include affordability checks, supplying personal information and more. Perhaps the biggest difference is the time. Remortgaging is typically a faster process than when you first buy a home.

So now, let’s look at the timescale for remortgaging your home.

How long does a remortgage take? The key steps to follow

The full remortgaging process can take around three months, but it is often recommended to give it six months. This way you have longer to spot a host of deals and find one that suits you better.

Many lenders allow you to lock in their rate six months before the agreement is due to begin, giving you a great saving before the deal is gone for good. In most cases, you’ll be switching to a new lender, but should you be sticking with your existing lender, you could find everything completed in as little as a week. This is known as a product transfer as you are simply moving from one mortgage product to another with the same lender. This is often favoured by many as you won’t need a mortgage valuation or a conveyancing solicitor.

Should the rates from your current lender not be suitable, you can start shopping around to find the best deals and begin the remortgage process.

Get all of your mortgage paperwork

With any mortgage application, you’ll need to have plenty of info to hand. This helps you clarify with the lenders any information they need to know and gives you a clearer understanding of your current situation.

You should be looking for how much you owe, how long is left on the mortgage and any other information specific to the mortgage you are currently using.

This shouldn’t take long if you are organised as your paperwork and documents will all be together. If not, give yourself a few hours to source and sort it all! Get this info together three to six months before your deal ends.

Check if you are eligible for remortgaging

Ideally, approximately six months before your current deal ends, check whether you will be eligible for remortgaging. Lenders have specific criteria, and it could be that at this time, you don’t meet them. Contact a mortgage saving expert like us! We can advise you on the best options for the circumstances you are currently in.

Assess what your current lender is offering

Once you have an idea of whether you are eligible for remortgaging your home, you should look at what your current lender is offering. Many will look at ways to keep your custom so may offer enticing rates. This product transfer can be an ideal money saver, but you should be wary as things aren’t always as clear as you may think. Using the expertise of a mortgage adviser, they will be able to illustrate where your current lender may be better or worse than options available with other lenders. Aim to start this process six months before your current deal ends.

Find the best remortgaging deal

With information from both your existing lender and new ones, you can start to assess what works best for you. It would be best to start actively comparing the offers 3-6 months before your current deal ends. This is because many lenders will allow you to apply and secure their deals well in advance of your current offer expiring.

You could choose to do this yourself, which is great if you know the right questions to ask and which small print to check. However, if you don’t you could find yourself missing out on much better options than the one you settle on. That’s why a mortgage broker is often advisable. They can tackle the issues you may not feel confident about and find the best deal.

This process should take no more than a few hours, but should you be looking to do it yourself, just remain aware that the lender may be by appointment only and slow down your progress.

Secure an agreement in principle for the remortgage

Now that you, or you and your broker have found a remortgaging deal that ticks all the right boxes, you can apply for your agreement in principle from the new lender. This is their way of saying you should be able to borrow a certain amount of money at a certain rate. As you’ll have found from when you got your first mortgage, this is not a mortgage offer and is simply an indication of what could be lent. You’ll have provided basic information in your application but remember that all the documentation you gathered earlier is still vital.

You should secure your agreement in principle within a day or so but aim to have it at least three months before your current deal expires.

Double check you have all the relevant documents for a remortgage application

With an AIP in place, you are partway there. You just now need to make sure your mortgage application gives the lender everything they want. We mentioned in the first step that you should have got all your paperwork together. Assuming you did, you now just need to add a little more to it to ensure your application is complete.

Pull together all the existing mortgage paperwork, and in addition, make sure you have:

• 3 months’ worth of bank statements.
• Proof of earnings for the past three months.
• Proof of address from a utility bill or bank statement that is no older than three months.
• ID. A passport or driving licence is ideal.

This shouldn’t take long but give yourself an hour or so to make sure you have everything. Aim to do this 3 months before the current mortgage expires.

Submit your remortgage application and have it assessed

With paperwork all collated, an agreement in principle in place and a deal that seems favourable, all you have to do now is submit the official application. If you have appointed a broker like Mortgage Saving Experts, we can do this for you. Should you be doing it yourself, just make sure you miss nothing out!

The application will now go to the lender who reviews it alongside all the other documents you have provided. This can take them as long as four weeks due to the fact they will not only check over the application but also value the property to ensure that the amount being lent matches the value of the home. Should all be ok, and your paperwork be complete, you’ll receive a mortgage offer. It would be recommended that you apply 2-3 months before your deal ends. This gives you 4 weeks for it to be assessed, 4 weeks for conveyancing to be completed and a spare few weeks should any problems arise.

Receive your remortgage offer

Your mortgage offer should be received within a day or two of the lender approving your application and valuing the property. In some cases, the lender may ask for additional information for you to get the new mortgage and in others, they may even decline the application altogether.

If your application is rejected, you should speak with the advisor or broker you chose to help you see what options remain open to you.

If your application has been approved, you are given a seven-day period to review and decide if this is definitely what you want to do. If it is, conveyancing can begin.

Completion and conveyancing

Despite staying in the same home, you’ll still need a conveyancer or solicitor to carry out some of the legal aspects of a property transaction. This can take two to three weeks and sometimes longer.

They will ensure everything with the remortgaging is correct and that the funds are moved correctly and as quickly as possible. Once this is done, the land registry is updated to reflect your new mortgage and you are ready to start paying back your new, more affordable mortgage.

Remortgaging can be a slow process, but it is essential to start it early. This way you can find the most affordable deals. Choosing to use the services of an experienced mortgage broker like Mortgage Saving Experts will help. Our knowledgeable team can use their expertise to help you find something affordable and much more attuned to your needs. Contact us today to find out more about the remortgaging options that may be available to you.