Remortgaging can be a useful option for property owners in many circumstances. However, there is a decent amount of planning that needs to go into remortgaging before it can be executed well. One aspect is how long the remortgaging process itself takes from start to completion. This article contains advice and information from experts in property conveyancing so you can make an informed decision regarding remortgaging.
How does remortgaging work?
Remortgaging is exactly what it sounds like – moving from one deal to another for the same property. This can either be with the same provider or a different one. In the case of the former, it won’t be a significant change other than the amount you will have to pay each month (mortgage rate). The remortgaging process typically includes:
- Research other deals and lenders
- Weigh up costs – there are costs associated with remortgaging which should be considered alongside the savings compared to the current rate. This can include fees charged by new lenders, conveyancing services, valuation costs, and early repayment charges if changing before the end of the mortgage.
- Obtain an Agreement in Principle – also known as a Decision in Principle, this will give an indication of how much a lender is willing to give for a particular mortgage.
- Apply for the remortgage – this can be done in person, online, or over the phone. Do note that supporting documentation will be required, along with a credit check.
- Legal work – while not as involved of a legal process as conveyancing, care must still be taken to complete the legal work accurately. It’s recommended to appoint a licensed conveyancer for the type of property you want to remortgage.
- Completion – the completion date for remortgaging is the same as the day that the new plan starts and the old mortgage has been paid off.
Factors which might affect the time it takes to remortgage
It typically takes between 4 to 8 weeks to remortgage your home from the date of applying. However, as is often the case with processes that concern property law, the timeframe can be extended unless managed effectively. The primary consideration here is gathering all the relevant paperwork. If you’re remortgaging with a new lender, this can include payslips from the last 3 months, your last P60, bank statements from the last 3 years, and tax returns from the last few years for those who are self employed. However, these checks are far less stringent if you are choosing to remortgage with your current lender. The remortgaging process can also be extended if it takes a while for lenders to provide information on Agreements in Principle.
If you’re thinking about remortgaging, we advise starting to research other deals and lenders early on. This will give you a good idea of what alternatives are available and allow you to secure the new deal so you can switch over seamlessly. Enlisting the help of a legal property expert will also help maintain communication with lenders and gather the necessary documentation.
Why remortgage?
There are many potential reasons why you might want to remortgage your property. Although the most attractive reason will be dictated by your situation, the property you are currently mortgaging, and the deal you have with your lender. These reasons can include:
- You want a better deal than your current lender is able to offer.
- Your existing mortgage rate has come to an end.
- Raise cash against the property without having to sell.
- You want to avoid rising interest rates.
- The property has gained value over time.
- Offers flexibility.
Expert property solicitors in the North East
Toomey Legal are experienced conveyancers for both residential and commercial property. We can provide support with sale, purchase, transfer of equity, business transactions, new builds, and more. What’s more is that our services are fixed fee, meaning that you know exactly what the costs are when deciding whether or not to remortgage your property. Get in touch with a member of the team for tailored legal advice.