Remortgaging is when you take out a new mortgage on a property you already own, rather than buying a new one. You're either switching to a new deal with your current lender or moving to a different lender altogether.
There are a few common reasons why you might think about remortgaging:
- Your current deal is ending, and you don’t want to be moved onto your lender’s standard variable rate (SVR)
- You want to reduce your monthly payments by finding a lower interest rate
- You’d like to borrow more money (for example, for home improvements)
- You’re looking to fix your rate for longer, to give you more certainty
- You want to consolidate other debts
It’s a completely normal part of having a mortgage. In fact, many people remortgage several times over the life of their loan.
When to start thinking about a remortgage
You don’t have to wait until your deal ends to start the process. In fact, it’s usually better if you don’t.
Most mortgage lenders will let you secure a new deal up to six months before your current one ends. This means you can start planning early and avoid rolling onto the lender’s standard variable rate, which is usually a lot more expensive.
Remortgage timeline
How long does a remortgage take?
Remortgaging is typically a quicker process than buying a new home but it can still take some time, so plan ahead to ensure you don’t get caught out.
Let’s take a look at a typical remortgage process timescale from start to finish to help you answer the question “when should I start the remortgage process?” and understand what milestones you’ll encounter along the way.
Check your remortgage eligibility: 4-6 months before your current deal ends
Just like when you took out your original mortgage, lenders have eligibility criteria for remortgaging. Most lenders require that you have a loan to value ratio of 90% or less, but this varies by lender so it’s best to go through a mortgage broker like L&C to help you find the best option for your circumstances. We’ll use our remortgage eligibility checker to find the best deal for you - and that leads us to the second step in the process…
Check what your current lender can offer: 3-6 months before
Before you move to a new lender, it’s worth checking what your current provider can offer you – they may have some good deals available for existing customers. L&C can help you compare what your existing lender can offer with what you can get by switching to a new lender, and in most cases we can help arrange a new deal with your existing lender if that’s the right option.
Shop around: 3-6 months before
If possible, give yourself plenty of time to do your research and find the right deal. Most lenders allow you to apply and secure a rate 3 months before your current deal ends, which means you can move straight across to your new deal when your old one finishes. There are a lot of products on the market and they can disappear fast, so using a broker like L&C can help speed up the search.
Decide which deal is best for you: 3-5 months before
Think about whether you want a rate that can go up and down as interest rates change, or if you would prefer to guarantee your monthly payments for a period of time by fixing. Remember not to focus entirely on the interest rate on offer, you should also take into account any fees you will need to pay.
Submit your application: 3-4 months before
Once we've researched everything for you, found a good deal and you've decided that you’re happy to go ahead, it's then time to submit your application.
Before you do that, we'll send you a Key Facts Illustration (KFI) for the deal we've recommended which sets out all you need to know about the mortgage, what it costs and what fees are involved.
When you submit your online mortgage application, you will be required to provide proof of identification, proof of income and details of your outgoings. It will save time if you are prepared, so get together at least 3 months of payslips, or 2 years of accounts if you are self employed, your passport or driving licence, and bank statements before you apply. Submitting your application through a mortgage broker like L&C is useful as they can help you through the whole process and deal with the lender on your behalf.
Assessment: 3 months before
Once you’ve submitted your remortgage application, the lender will need to assess your income, financial commitments and outgoings to make sure the mortgage will be affordable. They will carry out their remortgage affordability checks, and will also look at your credit rating and carry out a valuation of your property.
Mortgage offer: 2-3 months before
We'll assign you a case manager who’ll help get your mortgage offer issued as quickly as possible and keep you updated through the process. Your new lender will be assessing both you and the property (by way of a valuation) and once your remortgage affordability checks have been completed and the valuation carried out, your new lender should issue you with a mortgage offer.
Conveyancing: 4-8 weeks before
There's also the legal work to be done – lenders sometimes offer the option of appointing their own solicitors or conveyancers for a remortgage, but if you need to find one, we can recommend one for you.
Your conveyancer will undertake all of the necessary legal work and take the process through to completion by arranging for the funds to be transferred from the new lender to your previous lender. If you are borrowing additional money, to consolidate other debt or carry out some home improvements for example, the extra will be paid to you on completion.
Completion
Once your mortgage offer has been issued, double check the information the lender sends you and make sure everything is correct before you complete. If you're unsure of anything, we're happy to discuss it with you. Your solicitor will be in touch to confirm your completion date, and arrange to repay your current mortgage for you. If your current mortgage deal has an Early Repayment Charge which you don’t want to pay, you should make sure you don’t complete until the deal has ended.
So, how long does the remortgage process take? We try to make it as quick and easy as possible, but as you can see from these steps, you should start searching for a new mortgage 4-6 months before your term is up to be sure of getting the best deal.
Types of remortgage deals
When remortgaing, you'll usually havwe to choose between a few types of deal.
Fixed-rate mortgages
With a fixed rate mortgage, the interest rate stays the same for a set period, which are usually 2, 3, 5 or 10 years. This can give you peace of mind, as your payments won’t change.
Tracker mortgages
The interest rate on tracker mortgages tracks the Bank of England base rate, so it can go up or down. These tend to offer lower starting rates, but they’re less predictable.
Discount variable rate mortgages
These follow the lender’s standard variable rate but with a discount. Like tracker deals, your payments can change during the deal term.
Offset mortgages
With an offset mortgage, your savings account is linked directly to your mortgage. Instead of earning interest on your savings, the money in your savings account is used to reduce the amount of your mortgage that interest is charged on
Your L&C mortgage adviser can help you decide which type of deal suits your needs and how much you could save by switching.
Should you stay with your lender or switch?
There are two ways to remortgage:
Product transfer (staying with your current lender)
This is usually the simplest route. You’re just switching to a new deal with the same lender, and you won’t need legal work or a full application. It’s often called a ‘rate switch’.
Full remortgage (switching to a new lender)
This gives you access to the whole market, so you might find a better rate. But it’s a bit more involved. You’ll need to go through affordability checks, provide paperwork, and have your home valued again. The new lender will also carry out legal checks.
If you’re not sure which way to go, it’s a good idea to chat to one of L&C’s expert mortgage advisers. They’ll talk you through both options and help you decide which option is best for your circumstances.
What documents you’ll need
Whether you’re staying with your lender or moving to a new one, it’s a good idea to gather your documents early. You may not need everything if you’re doing a product transfer, but here’s what lenders usually ask for in a full remortgage:
- Proof of identity such as passport or driving licence.
- Proof of address which can include utility bills, bank statements or council tax bills, usually dated within the last 3 months.
- Proof of income
- Last 3 months of payslips and latest P60 if employed
- Last 2–3 years of tax calculations and SA302s if self employed
- Business accounts and personal income details if a company director
- Bank statements, usually the last 3 months, showing your income, bills, and any regular payments.
- Details of your existing mortgage including the balance, the remaining term, your current interest rate, and any early repayment charge.
- Information on your outgoings. You may be asked to list your monthly expenses, including loans, credit cards, childcare and travel costs.
Your L&C mortgage adviser can let you know exactly what documents you’ll need for your situation and help you get everything organised.
What happens during the remortgage process
Review your current deal
Check when your current mortgage ends and what rate you’re paying. Make a note of any early repayment charge.
Compare deals and speak to your L&C adviser
You can use online tools to compare deals or speak to your L&C mortgage adviser who’ll search the market for you. They’ll look at your income, outgoings and how much you want to borrow.
Submit a full application
You’ll need to send your documents and choose a mortgage deal. The lender will check everything and instruct a valuation.
Valuation and underwriting
The lender may carry out a desktop, drive-by or physical valuation of your home. They’ll also check your credit file and assess affordability.
Mortgage offer issued
Once the checks are done, your formal mortgage offer will be sent. This usually takes 2 to 4 weeks from application.
Legal work (if switching lenders)
A solicitor or conveyancer will handle the legal side. If your new lender offers a free legal package, they’ll deal with everything on your behalf.
Completion day
Your solicitor will repay your old mortgage and the new one will begin. You’ll receive confirmation of your new monthly payments.
Fees and costs to watch out for
Early repayment charge (ERC)
If you’re still in your deal, check your lender’s ERC. These can be several thousand pounds depending on how early you exit.
Exit fee
Also called a ‘deeds release fee’. Usually around £50–£300.
Arrangement fee
Some new deals come with an upfront fee, often £995 or more. This can sometimes be added to the loan.
Valuation fee
Many lenders offer free valuations, but if not, expect to pay £150–£1,500 depending on your property value.
Legal fees
If you’re switching lenders, legal work is needed. Many lenders offer a free legal package or even cashback, but it’s always best to talk to your mortgage adviser.
An L&C adviser will talk you through all the potential costs, and help you work out which deals offer the best overall value.
Questions to ask before you remortgage
Here are some helpful questions to think about (or ask your L&C mortgage adviser):
- Is now the right time to remortgage?
- Will the savings outweigh the fees?
- Am I better off staying with my lender or switching?
- Should I fix my rate, and if so, for how long?
- Can I borrow more if I need to?
- What happens if the valuation comes in low?
- What’s the impact on my credit score?
Everyone’s situation is different. A quick chat with your adviser at L&C can help you feel confident in your next steps.
Remortgaging is something most homeowners do at some point, and it can save you thousands over time. The key is to start early, understand your options, and get the right advice. With your L&C mortgage adviser on hand to guide you through, it’s a fairly straightforward process and one that could make a big difference to your monthly budget.
And because L&C’s advice is fee-free, it won’t cost you anything to find out if you could be getting a better deal.
