What is Remortgaging?
Remortgaging means switching your mortgage to a new deal, either with your current lender or a different one. Most people remortgage to get a better interest rate when their current deal ends, potentially saving hundreds of pounds each month. Other reasons include releasing equity from your property, consolidating debts, or changing your mortgage terms.
The process is similar to getting a new mortgage, but typically simpler since you already own the property. There's no chain to worry about, and many remortgage products include free valuations and legal services.
Step 1: Check Your Current Deal
Start by reviewing your existing mortgage. Check when your current rate ends - this is crucial timing. Look for any early repayment charges that might apply if you switch before your deal ends. Also note your current rate and outstanding balance.
Your annual mortgage statement or online account should have this information. If not, contact your lender to get the details. Understanding your current position helps you compare new deals effectively.
Step 2: Compare New Deals
Begin searching for new deals around 6 months before your current rate ends. This gives time to secure a rate (most offers last 3-6 months) and complete the process before you fall onto an expensive SVR. You can compare deals yourself or use a broker to search the whole market for you.
Consider what type of rate you want (fixed, tracker, etc.), the term length, and any fees involved. Sometimes a slightly higher rate with no fees beats a lower rate with a large arrangement fee, depending on your balance and planned hold period.
Step 3: Gather Your Documents
You'll need proof of income (payslips, P60, or accounts if self-employed), bank statements (usually 3 months), proof of ID and address, and details of your current mortgage and property. Having these ready speeds up the application process.
If you're self-employed, gather your SA302 tax calculations and tax year overviews from HMRC, plus any company accounts. Requirements vary by lender, so your broker can advise exactly what you'll need.
Step 4: Submit Your Application
Your broker submits your application to the chosen lender with all necessary documents. The lender will perform credit checks, verify your income, and assess affordability. For remortgages, they'll also value your property - often using a desktop valuation rather than a physical visit.
This stage typically takes 2-4 weeks depending on the lender's workload and how quickly any queries are resolved. Your broker manages communications and keeps things moving.
Step 5: Legal Work and Completion
Once the lender approves your application, solicitors handle the legal transfer. Many remortgage products include free legal services through the lender's panel solicitors. They'll check the title, conduct searches, and prepare the legal transfer of the mortgage.
This typically takes another 2-4 weeks. You'll sign the mortgage deed and other documents. On completion day, the new mortgage pays off your old one, and you start paying your new lender.
How Long Does Remortgaging Take?
The entire process typically takes 4-8 weeks from application to completion. Starting 6 months early gives plenty of buffer time and ensures you don't end up on your lender's SVR even temporarily.
Delays can occur if there are queries about your application, property issues arise in the valuation, or legal complications emerge. Working with an experienced broker helps navigate any issues quickly.