If you’re remortgaging your property, you’re likely wondering – how long does it take to remortgage in the UK? The remortgage process typically takes between 4 and 8 weeks, depending on whether you stay with your current lender, switch to a new one, or release equity. To find out more about the remortgage process and timeline, continue reading.
What is a Remortgage?
A remortgage works by replacing your current mortgage with a new one, either with your existing lender (known as a product transfer) or a new lender. Your new mortgage will then be used to pay off your old one, allowing you to stay in the same property with potentially lower interest rates and an alternative repayment method.
The Bank of England revealed a minor dip in remortgaging approvals, which decreased slightly from 38,400 to 38,100 in January compared to December last year. This shows us that demand for switching lenders remains quite stable and that homeowners are still actively remortgaging.
Best Time to Remortgage
The best time to remortgage is around 3 to 6 months before your current fixed-rate mortgage deal expires. This allows access to a new rate without transitioning onto your lender’s higher standard variable rate (SVR), helping avoid any early repayment charges (ERCs).
How Long Does it Take to Remortgage and Release Equity?
Remortgaging and releasing equity typically take up to 8 weeks, although this can vary depending on your circumstances.
Many homeowners secure a new deal and borrow money if the value of their property has increased. This borrowed money is often used to cover costs for home renovations and living expenses. However, while releasing equity can be beneficial, you’ll be increasing the size of your mortgage, so your monthly repayments will go up.
Fastest Way to Remortgage
The fastest way to remortgage is to stay with your existing lender and opt for a product transfer.
Sticking with your current lender allows for the simplest remortgage process involving an easy change in mortgage deals as your contract comes to an end. Your lender will want to keep you as a customer, which is why a more improved and competitive offer is given to encourage you to stay. Remember, staying with your current lender may speed up the process, but it doesn’t guarantee the most affordable option.
The Remortgage Process & Timeframe
The remortgage process takes between 4 and 8 weeks from application to completion. However, certain factors, like switching lenders, may affect the typical remortgage timeline.
Assess New Deal & Contact a Remortgage Advisor: 1-3 days
The first step is to assess your new mortgage deal from your existing lender. Once you’ve checked your new deal, the next best step is to contact a remortgage advisor to compare with other offers from different lenders. Mortgage brokers offer specialist guidance and access to exclusive deals, helping you understand any confusing legalities to make the most informed decision.
Choose a Suitable Mortgage Deal: 3-7+ days
After assessing the options available with your mortgage advisor, it’s time to weigh up your options. Choosing the most suitable mortgage deal takes time, and it’s important to consider both your current and future circumstances. With help from your mortgage advisor, you can factor in additional fees, such as valuation fees, exit fees, and early repayment charges.
Complete an Agreement in Principle (AIP): 1-2 days
An Agreement in Principle (AIP) indicates how much you could borrow from a lender for a remortgage based on earnings and outgoings. In most cases, your mortgage advisor will complete an AIP on your behalf if they have all the relevant information needed.
Apply: 1-3 days
Once accepted for your AIP, your application can begin. Applications shouldn’t take too long, as your mortgage advisor should have all the key information. In addition to general information, you may also be asked to provide several months of bank statements, payslips, and bills to prove you can afford repayments. If any of the information you provide is incorrect, delays may occur.
Wait for Lender Assessment: 2-4 weeks
Lender assessment takes the longest during the remortgage process, contributing to the lengthy 4- to 8-week timeframe. Your lender will assess the information provided and perform a separate credit check before valuing your property. If you switch lenders, you’ll repeat similar steps as when you got your first mortgage, since it’s considered a brand-new application.
Hire a Solicitor or Conveyancer: 1-3 weeks (if switching)
If you decided to stay with your existing lender, a solicitor or conveyancer isn’t needed – you’ll just switch to your new mortgage deal immediately. However, if you’re switching lenders, you’ll need to hire a solicitor or conveyancer to manage the legal work involved in the final stage of the remortgage process.
Please note that timeframes may vary.
Timeframe Summary
Stage | Estimated Timeframe |
Assess new deal & contact a remortgage advisor | 1-3 days |
Choose a suitable mortgage deal | 3-7+ days |
Complete an Agreement in Principle (AIP) | 1-2 days |
Apply | 1-3 days |
Wait for the lender assessment | 2-4 weeks |
Hire a solicitor or conveyancer | 1-3 weeks |
Can You Speed Up the Remortgage Process?
You can’t ‘speed up’ the remortgage process, but you can follow some helpful tips to ensure minimal delays throughout:
- Stay with your existing lender to shorten the process
- Hire an experienced remortgage broker for invaluable support
- Provide information on time to avoid delays
- Ensure information is accurate to prevent mistakes
- Communicate with your lender on time
How JG Mortgages Can Help You Remortgage
At JG Mortgages, we offer full-service remortgage broking. Our expert team handles everything on your behalf, from initial consultation to remortgage completion. We secure low-interest deals to cut payments, assist with equity release, and offer tailored guidance throughout the entire process. Our trusted remortgaging service provides real insight into the latest trends and regulations in the market to help you make the best decisions.
Contact our friendly team today to arrange a free consultation!
Remortgage FAQs:
Is remortgaging as hard as getting a mortgage?
Remortgaging is generally not as hard as getting a mortgage, especially if you stay with your existing lender and have a positive, proven track record.
How long does it take to remortgage a house?
Remortgaging a house typically takes 4 to 8 weeks, which is the general remortgage timeframe.
Can you remortgage in 2 weeks?
Yes, remortgaging can take just 2 weeks, but it’s only possible with straightforward product transfers with your existing lender.
What is the 6-month rule for remortgages?
The 6-month rule for a remortgage is a guideline most lenders require, which means you should ideally own a property for at least 6 months before asking for a remortgage.
Do you need a deposit for a remortgage?
You don’t usually need a cash deposit to remortgage in the UK, as you aren’t buying a new property and already own your home with equity built up through repayments.
