Correct at 30/06/2023
The remortgage process is usually less involved than buying a new home and it may be easier than you think. However, it still needs a bit of thought before going ahead so that things run smoothly. Read on for the full remortgage process explained, so you know what’s in store.
A good place to start is to think about what you’re hoping to achieve by remortgaging. For example, are you looking to save money by getting a lower interest rate than you’re currently paying? Do you want to change the terms of your mortgage to make it more flexible? Perhaps you want to release equity built up in your home.
If your initial deal has ended or is about to end, remortgaging can help secure the best new deal and potentially save you money.
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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.
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…
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.
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.
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.
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.
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.
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.
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.
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.
Whatever the reason for remortgaging, talking to a mortgage broker can help you find the best deal. We can also advise on how much you can afford to borrow – whilst giving you expert advice about which mortgage best fits your needs and circumstances.
If you are interested in remortgaging your property, or you just want to see which options are available to you, give L&C a call or get started online. Our expert advisers will be able to find the best option for you and your property, quickly and hassle free.
It usually takes between four to eight weeks after you submit your application to get your remortgage offer from the lender, but if there are any issues along the way, they can delay the process.
Putting your online remortgage application together is quick and easy with L&C. Once you’re happy with the mortgage we’ve recommended you can complete your remortgage application online using our unique application system, then we’ll help you get the correct paperwork together and get your application underway with your new lender. We’ll keep you updated along the way and you can track your application’s progress in your online portal.
Yes, a loan will affect your remortgage application in that it will be accounted for in your monthly outgoings and can have an impact on your affordability for remortgaging. If you miss any loan repayments, this will affect your credit score, which can affect your eligibility for new deals.
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