How long does it take to remortgage? Well, that depends on a number of factors including:
- How long it takes to gather documentation relating to the mortgage application
- The turn around time of the mortgage lender
- The turn around time of your conveyancer
- And last but not the least, the complexity of your mortgage application
Typically, the remortgage timescale is up to two months. It is important to ensure that you give yourself enough time if your current mortgage deal is due to finish in the next few months. This will help you avoid the usually expensive SVR (standard variable rate) that the fixed mortgage deals tend to revert back to at the end of the deal period. If timed right, you should be able to transition from the earlier deal to the new deal without paying the expensive SVR.
New mortgage regulations have made applications tougher with lenders using a stricter income and affordability assessments. They will do stress tests to determine whether you will still be able your mortgage if the rate increases. This makes it harder to get a remortgage if you have changed jobs recently, especially if you have become self-employed. Read about self employed mortgages and how to get them here.
Typically the remortgage process begins by getting a mortgage agreement in principle. The lender will perform a credit search and agree to lend you a figure that they would be willing to lend you for mortgage purposes. However, this is not guaranteed and a full assessment will have to be made before a lender can issue a mortgage offer. For purchases, an agreement in principle is a good way of showing the estate agents and vendors that your offer is credible.
A mortgage application will then have to be submitted with the lender in order for them to fully assess your affordability and circumstances. They will take in to consideration:
- Your income – the majority of lender will want to see evidence in the form of payslips or self-assessments if you are self-employed. This will help them decide what monthly mortgage repayments you can afford.
- Your outgoings – evidenced by bank statements, lenders will need to get an idea of what you spend per month and what on.
- A valuation of the property – this will confirm the property value and whether it’s a suitable property to mortgage against.
How long does it take to remortgage?
After the lender has reviewed the above, a formal mortgage offer will be produced providing they are satisfied. The amount of time it takes to get to this stage depends on the overall complexity of the application. Any discrepancies will hold up the process as the lender will be more cautious about lending. There may also be issues if the property value has fallen below the mortgage amount (i.e negative equity). In general, it will take between 18-40 days for the processing of the mortgage application and an offer to be produced.
Gathering your required documents efficiently and staying in regular contact with your mortgage broker, lender and conveyancer are all ways of which you can ensure that the process runs smoothly and in a timely manner.