Remortgaging is something most homeowners will need to do several times throughout their lives. In the UK, mortgage terms only tend to last two, three, or five years, which means you’ll need to remortgage as often as every two years. You can even remortgage early if you want, though there are fees and early repayment charges to consider.
What you may wonder if you are reaching the stage where you’ll have to remortgage soon is how long exactly the process will take. Not only that but what happens in between? This guide covers everything you need to know about the remortgaging timeline.
How long does a remortgage take?
How long does it take to remortgage? It depends on whether you’re remortgaging with a new lender or your current one.
- Remortgaging, on average, takes between four and eight weeks if you’re remortgaging with a new lender.
- Remortgaging with your current lender takes about a week.
If you remortgage with a new lender, they have to conduct the same affordability and valuation checks that you initially went through with your current lender. If you remortgage with your existing lender, this is technically just moving your mortgage product and doesn’t require as many checks.
Existing lender remortgaging timeline
Remortgaging with the same lender is technically a product transfer, not a remortgage. You will still enter a new mortgage agreement, but since it’s with the same lender, there are fewer checks and processes to go through. After all, funds won’t need to be transferred, valuations won’t need to be carried out, and even affordability checks may be waived since they’re already done.
That’s why remortgaging with your existing lender can take as little as a week, sometimes less.
You can start the process the week before your fixed-rate term ends, or after it ends. So long as your accounts are in good standing order, there should be minimal delays.
New lender remortgaging timeline
To remortgage quickly and smoothly, you’ll want to follow this timeline:
1. Four to six months before your fixed-rate term ends
You should start hunting for your next mortgage deal within the last six months of your mortgage deal. If your financial situation has significantly changed (for example, you’ve improved your credit score, you earn more, or your home value has greatly increased), then you’ll want to go to a broker. Going to a broker lets you see multiple lender offers at once.
The reason you’ll want to start this early is that if you go with a new lender, you will need to make a fresh application. If you find a rate you like, get a mortgage in principle.
2. Three to four months before your fixed-term rate ends
If you plan on going with a new lender and have a specific mortgage offer you want to secure, then you’ll want to make the application between three and four months before your fixed-term rate ends. This is because new lender remortgages can take between four and eight weeks to carry out their affordability and valuation checks.
3. Three months before your term ends
Your new lender will carry out their checks and valuation around this time. If you have all the documents you need in advance, this can go by quickly and smoothly.
4. 4 to 8 weeks before your term ends
In the last one to two months conveyancing will happen. Conveyancing refers to all the legal matters that need to be completed to arrange for the funds transfer from your new lender to your previous one.
If you intend to consolidate debts into your new mortgage or add a new person to your mortgage, then conveyancing can take longer.
5. Completion
You can negotiate with lenders in advance, so you should be able to organise so that your remortgage starts the day your current mortgage ends if you want. You can also usually lock in a rate up to six months in advance but only officially start your new mortgage later.
