How Long Does It Take to Remortgage? | Think Plutus (2024)

FAQs

How Long Does It Take to Remortgage? | Think Plutus? ›

On average, you can expect it to take around 6 to 8 weeks to remortgage.

The remortgaging process typically takes from 4 to 8 weeks after you apply. For most applications, you'll need to speak to one of the lender's mortgage advisers, who are qualified to advise you about the best deal for your needs.

The fastest way to remortgage is to get a new mortgage with your existing lender; this process is called a 'product transfer'. Time scales vary but product transfers generally take around a week.

The name can be a little confusing as a 'Day One Remortgage' does not have to take place on Day 1 of property ownership. It refers to the process of remortgaging a property that you have only just bought, or purchased within the last 6 months. This can of course include owning it for just one day!

Whether you should fix your mortgage for 2 or 5 years depends on you and your individual circ*mstances. Fixing your mortgage for 2 years can give you certainty and stability in the short-term, and can also be the right choice if you only plan on staying in your home for a few years.

Why does remortgaging take so long? If you choose not to do a product transfer, opting instead to remortgage to a new lender in order to access a better deal, it is essentially a brand new mortgage application. For this reason, it takes roughly the same amount of time as your original mortgage application.

It is certainly possible to remortgage with poor credit. Different bad credit situations will require different mortgage solutions. Don't worry if you have a bad credit score, it doesn't always mean you can't remortgage your property. There are likely to be options available to you.

The process of remortgaging with the same lender tends to be fairly straightforward. If all you are doing is moving to a new deal and not changing anything else, your existing lender may be happy to proceed without another affordability check, credit check or property valuation.

Throwing in an extra $500 or $1,000 every month won't necessarily help you pay off your mortgage more quickly. Unless you specify that the additional money you're paying is meant to be applied to your principal balance, the lender may use it to pay down interest for the next scheduled payment.

Should I remortgage early or wait? ›

Paying your mortgage off early, particularly if you're not in the last few years of your loan term, reduces the overall loan cost. This is because you'll save a significant amount on the interest that makes up part of your payment agreement.

Switching to a new mortgage with your current lender is sometimes known as a product transfer. Not much will change other than the amount you repay each month, assuming your new rate is different. If you remortgage with a different lender, they will pay off your existing mortgage and your debt transfers over to them.

Start looking around six months before your rate ends, so as to avoid delays that result in you being stuck on your lender's SVR. You want a better rate. If you're already tied into a mortgage deal then it's likely you'll have to pay an early repayment charge (ERC) to ditch it.

There are two main ways to pay off your debts through remortgaging. You could either: remortgage to a cheaper deal, which reduces your monthly mortgage payment, freeing up money to pay off debts, or. remortgage and in doing so release equity in a lump sum to pay off your debts.

You may find it difficult to remortgage if you've had a drop in income, recently changed jobs, become self-employed, or are facing redundancy. Other circ*mstances can also have an impact. For example, if you start a family or go on maternity or paternity leave, this can affect your remortgage application.

What happens if I do nothing? You will usually be moved to a 'standard variable rate' (SVR) mortgage. As the name suggests, this means your mortgage payments can go up or down. The interest rates are often higher for SVRs than they are for other types of mortgages.

It typically takes four to eight weeks to release equity through remortgaging, however, this does vary depending on the complexity of your circ*mstances. Make sure you leave yourself enough time to get the funds for whatever you need them for by applying more than eight weeks in advance.

Remortgaging is when you move your mortgage on your existing property, from one lender to another. Your new mortgage will then replace your old one. You may want to remortgage if you're: Coming to the end of your existing mortgage deal. Searching for a deal that better suits your needs.

Remortgaging can be quite simple. It usually takes a lot less time and effort than sorting out your first mortgage. It might be worth checking what deals are available with your existing lender, before remortgaging with a new one.

In most cases, you may refinance a conventional loan as soon as you want. You might have to wait six months before you can refinance with the same lender. But that doesn't stop you from refinancing with a different lender.