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What Happens on Remortgage Completion Day?

Remortgage completion day is the final stage, where your new mortgage product takes over from the previous home loan, and the financial and legal transactions are concluded. What happens on remortgage completion day? We'll explain how it works and what to expect.

Almas Uddin
Almas Uddin

Founder and Mortgage Advisor

Almas Uddin2024-07-17
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Understanding the Process on Remortgage Closing Day

Remortgage completion day is the final stage, where your new mortgage product takes over from the previous home loan, and the financial and legal transactions are concluded. What happens on remortgage completion day? We'll explain how it works and what to expect.

This guide looks at how long does a remortgage offer last, what happens when you remortgage your house, and how quickly can you remortgage from start to finish.

What Happens When You Remortgage on Completion Day?

What happens when you remortgage your house is that you select a new mortgage to repay the previous balance, whether with the same lender or another provider. What does a remortgage mean?

You receive a new loan from the remortgage lender, which takes over your original home loan.

What happens when you remortgage on completion day? Your solicitor will manage the details, fund transfers and other processes and will provide you with a completion statement for your records.

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How Long Does A Remortgage Take

Finding out how long a remortgage takes can confuse many homeowners. The process usually lasts 4-8 weeks from start to finish. This article breaks down the timeline and offers tips to speed things up, helping you smoothly transition to your new mortgage deal.

Keep reading for key insights!

Key Takeaways

  • The remortgage process typically takes 4 - 8 weeks from start to finish. This time can change based on factors like your financial situation, how fast the lender works, and if there are any legal issues with the property.
  • Start preparing for a remortgage 4-6 months before your current deal ends by checking eligibility and shopping around for new deals. Submitting your application 3-4 months in advance allows enough time for processing.
  • Hiring an efficient solicitor or conveyancer is essential as they manage the legal work needed to secure your new mortgage deal. Their speed and efficiency can significantly affect the timeline of the remortgaging process.
  • Keeping good financial standing is crucial throughout the remortgaging process. Paying bills on time and maintaining stable employment helps present you as a favorable candidate to lenders, which can influence how quickly your application moves forward.
  • Communicate clearly with your solicitor or conveyancer about needing quick action and submit all required paperwork promptly. Organizing documents early and making sure everything is submitted on time will help speed up the entire process.

Understanding the Remortgaging Process

To understand the remortgaging process, you should be aware of the various factors that can affect the timeline and know key details about how it works.

Factors that affect the timeline

The remortgage process time can vary significantly depending on several key factors. Each of these plays a crucial role in determining how quickly you can move from your current mortgage deal to a new one.

  1. Lender's Response Time: Every lender has their own set of procedures and timelines for processing applications. Some might work through paperwork faster than others, affecting the overall time to remortgage.
  2. Your Financial Situation: Applicants with straightforward financial situations often find that their remortgage processes move more quickly. Complications such as irregular income or poor credit history can slow things down.
  3. Property Valuation: A vital step in the remortgage process is the property valuation conducted by the new lender. Delays can occur if there are issues scheduling the valuation or if discrepancies arise from the evaluation.
  4. Solicitor or Conveyancer Efficiency: Once you receive a mortgage offer, hiring an efficient conveyancer or solicitor becomes crucial. Their ability to handle legal work promptly greatly influences how long it takes to complete a remortgage.
  5. Accuracy and Completeness of Documents: Submitting all necessary documents in a timely and accurate manner helps avoid delays. Missing information or errors can halt progress until rectified.
  6. Market Conditions: The demand for mortgages fluctuates, leading to busy periods where lenders and conveyancers deal with a high volume of applications, slowing down individual case progress.
  7. Type of Remortgage: Switching products with your current lender (product transfer) generally takes less time compared to moving to a new lender.
  8. Legal Complications: Issues such as disputes over property boundaries or unresolved claims can introduce significant delays into the remortgaging timeline.

Each one of these factors contributes to how quickly you can navigate the steps from choosing to embark on a remortgage journey, submitting your application, and finally arriving at completion day. Proactively managing what you can control helps streamline this process, making your transition to a new mortgage deal smoother and swifter.

Key things to know

Securing a remortgage requires knowing how long the process usually takes, which is typically 4-8 weeks from start to finish. Giving yourself plenty of time to find a new mortgage deal is crucial for a smooth transition.

Mortgage brokers play an essential role in this stage as they can access thousands of deals across various lenders that can assess your monthly payments and mortgage offer before the mortgage application and also helping you secure the perfect loan to value ratio for your financial situation.

Once you've chosen a remortgage deal, applying for a decision in principle (DIP) becomes the next critical step. A DIP gives you confirmation that a lender is potentially willing to offer you the loan based on early information provided.

Also important to note are remortgage valuations; their costs range from $250 to $1,500 depending on your property's size and value. Yet, many lenders now include this service free with their remortgage packages, making it an extra perk when considering how to remortgage efficiently.

Timeline for Remortgaging

Check eligibility for remortgaging 4-6 months before your current deal ends. Shop around for new deals 3-6 months in advance, then submit your application 3-4 months prior. Arrange conveyancing services 4-8 weeks before completion.

Check eligibility 4-6 months before current deal ends

Start checking your eligibility for a remortgage 4-6 months before your current deal expires. This timeframe gives you ample opportunity to understand the requirements of potential lenders, including their criteria on loan-to-value ratios which typically should be 90% or less.

Ensuring you meet these criteria early can greatly improve your chances of approval and allow time for any necessary adjustments.

Early preparation involves gathering all relevant financial documents and reviewing your credit report score. Lenders will scrutinize these details closely, so identifying and resolving any issues ahead of time can streamline the process.

By handling this step well in advance, you position yourself as an attractive candidate to lenders, potentially securing more favorable terms for your remortgage.

Shop around 3-6 months before

To ensure that you find the best remortgage deal, it is advisable to start shopping around 3-6 months before your current deal ends. This timeframe allows you to explore a wide range of options and gives you enough time to make a well-informed decision.

By doing so, not only can you potentially unlock the secrets of better rates and terms, but it also provides ample time for any unexpected delays that may arise during the process.

Moving forward - Submit Application 3-4 Months Before

Submit application 3-4 months before

Submit your remortgage application 3-4 months in advance. This allows ample time for the lender to process your application, review your financial information, and provide a decision.

It's crucial to be proactive and organized when gathering all necessary documentation as it can expedite the application process considerably.

Ensure that you have all required paperwork completed accurately and submitted on time. Being proactive at this stage will facilitate a smoother transition through the subsequent stages of the remortgaging process.

Conveyancing 4-8 weeks before

The conveyancing process typically takes about 4-8 weeks before the remortgage is finalized. During this period, a conveyancer or solicitor handles the legal work required to secure the new mortgage deal.

They ensure that all necessary paperwork is completed accurately and help navigate any complexities involved in transferring the property title from one lender to another. Additionally, this phase may also include a remortgage valuation conducted by the lender to determine the current value of the property.

Completion

After completion, the new lender will notify you of your new monthly repayments and update the land registry. This typically takes about 4-8 weeks from start to finish, providing a clear and efficient resolution to the remortgaging process.

Tips to Speed Up the Process

Communicate urgency to solicitor/conveyancer, submit paperwork on time.

Communicate urgency to solicitor/conveyancer

Urgently conveying the need for prompt action to your solicitor or conveyancer is crucial to expediting the remortgaging process. This can help ensure that all legal work and documentation are handled swiftly, helping to meet tight timelines.

By clearly communicating your urgency, you can motivate them to prioritize and efficiently carry out their responsibilities, ultimately speeding up the entire remortgage procedure.

Additionally, keeping an open line of communication with your solicitor or conveyancer is essential in achieving a seamless and efficient remortgaging process. It allows for quick resolution of any potential issues that may arise during the legal work phase.

Prepare and submit paperwork on time

Gather and organize all required documents early in the process. Submit pay stubs, tax returns, bank statements, and any other requested paperwork promptly to avoid delays. Keep an eye on deadlines and communicate with your existing lender to ensure everything is submitted on time.

Maintain good financial standing

To secure a smooth remortgaging process, maintaining good financial standing is crucial. Credit reference agencies assess your credit score, employment status, and income stability to gauge your financial health.

Paying bills on time, keeping debt levels low, and avoiding new credit inquiries can positively impact your credit rating and demonstrate responsible financial management.

Furthermore, being transparent about all sources of income and having stable employment history can strengthen your application. It's also advisable to avoid large expenditures or taking out new loans in the months leading up to the remortgage application as this could raise red flags for lenders.

Frequently Asked Questions

What role does Habito play in remortgaging? What are the benefits of remortgaging with a new lender?

Habito's role in remortgaging

Habito plays a crucial role in remortgaging by helping individuals find the best deals and navigating the application process. The company's assistance allows customers to streamline their search for suitable remortgage options, ensuring they can make informed decisions regarding their financial needs.

Habito's support involves handling the entire application process while guiding clients through finding the most appropriate remortgage deal. This approach ensures that customers receive personalized help tailored to their specific requirements, ultimately saving time and effort in what can often be a complex procedure.

Fixed-rate mortgages

Fixed-rate mortgages provide stability and predictability by locking in a consistent interest rate for a set period. With the help of a mortgage broker, you can explore various fixed-rate options to find the perfect remortgage deal that aligns with your financial goals.

Many lenders now include free remortgage valuations as part of the remortgaging process, making it easier to assess your property's value without additional costs. By gaining access to competitive rates through a mortgage broker like Habito, you can streamline the application process and secure a beneficial fixed-rate mortgage tailored to your needs.

Moving on to "Legal process for remortgaging with a new lender"...

Legal process for remortgaging with a new lender

Moving on from fixed-rate mortgages, the legal process for remortgaging with a new lender involves several key steps. After choosing a suitable mortgage deal, you'll need to engage a solicitor or conveyancer to handle the legal aspects of the new mortgage.

They will oversee tasks such as conducting property searches, verifying ownership, and ensuring that all legal requirements are met before finalizing the remortgage. This phase typically takes 4-8 weeks before completion.

Once your decision is made and paperwork is in order, communicating effectively with your solicitor or conveyancer can help speed up the conveyancing process and ensure everything runs smoothly according to plan.

Benefits of remortgaging

Remortgaging can bring several benefits, including saving money by securing a lower interest rate and changing the terms of the mortgage. By taking advantage of better rates in the market, homeowners have an opportunity to reduce their early repayment charge payments.

Furthermore, remortgaging can also provide a chance for borrowers to access equity they have built up in their homes over time. This infusion of funds could be used for home improvements or other investments, offering financial flexibility that is not available with standard mortgages.

Potential pitfalls to avoid

Failing to provide complete personal information, credit reports, and details about the current mortgage can cause severe delays in the remortgaging process. Not obtaining a decision in principle (DIP) before applying for a remortgage deal can lead to uncertainty about a lender's willingness to lend.

Giving insufficient time to sort out a new mortgage deal may result in potential issues or unexpected delays.

Avoiding these pitfalls is critical for ensuring a smooth and timely remortgaging experience.

Conclusion

Discovering how long does it take to remortgage can help you plan ahead. Checking eligibility, shopping around, and submitting your application are key steps in the process. Communication with your solicitor, timely paperwork submission, and maintaining good financial standing can also speed things up significantly.

Understanding these timelines and tips will make the whole process smoother for you.

How to Remortgage a House UK

What happens on remortgage completion day in contrast to a first-time mortgage completion? The biggest difference is that you aren't moving, so you don't need to collect keys or organise storage and onward delivery of your belongings.

Instead, what happens when you remortgage your house is that you apply for a new loan to supersede the first mortgage, which makes remortgaging quicker and less complex than a mortgage.

When can you remortgage a house, and what do you need to do to ensure the transaction completes? The first step is to apply for a remortgage, using an independent broker in most cases to select the ideal product or lender.

Once you have successfully applied, do you need a valuation to remortgage? Much depends on the lender and circumstances, but yes, most lenders will want to revalue the property. They will run through eligibility checks and affordability assessments before they make a formal offer.

How to remortgage a house UK means you'll require a solicitor to manage the paperwork and transactions between the two lenders.

What does a remortgage mean if you are a leaseholder? The process is the same, but you'll likely need the freeholder's consent to proceed with a remortgage application. Your solicitor or conveyancer will handle the title deeds and mortgage deeds, registering the remortgage with the Land Registry.

How Long Does a Remortgage Offer Last?

Once a lender has confirmed their remortgage offer, it remains valid, provided none of the details change, for up to six months. How quickly can you remortgage depends on several variables, but most lenders require four to eight weeks to complete.

How to remortgage a house UK with a convenient completion day is also variable. However, lenders typically like to agree on a date with you that falls on a weekday, and completion can occur up until roughly 5 pm.

What Happens When You Remortgage That Can Cause Delays?

Most of the time, how to remortgage a house UK is straightforward, and your remortgage will complete without any issues. However, being aware of potential problems can help you pre-empt delays and avoid any complications.

What Happens When You Remortgage if the Lender’s Funds Are Delayed?

If the new lender does not remit the funds via your solicitor on time, the remortgage completion can stall. This is unusual, but you could find how quickly can you remortgage is affected by one or two days due to banking issues or software faults.

What Does a Remortgage Mean With a Cash Lump Sum?

Borrowers can deposit cash towards the new property, alongside the remortgage, to reduce their loan value. When can you remortgage a house can be affected if you have not transferred the lump sum in good time or the funds are not yet available on completion day.

What Happens When You Remortgage Your House and Have Paperwork Issues?

Missing paperwork, signatures or forms can all contribute to remortgaging delays. However, your solicitor should triple-check all the documentation and ensure everything is ready to go in advance of the completion day. How quickly can you remortgage is impacted by any paperwork issues, so verifying the accuracy of all the forms and legal contracts is important.

How Much Are Legal Fees for Remortgage Services?

Most homeowners will work with a solicitor or conveyancer throughout the remortgage process – although that isn't mandatory if you are confident handling all the documents and deeds independently. If you haven't paid your solicitor's charges, you could find this affects what happens on remortgage completion day if they aren't prepared to proceed.

Finding Out How Quickly Can You Remortgage

The biggest factor in what happens when you remortgage your house is the lender and remortgage product you choose. If you're unsure how to remortgage a house UK, what to expect from the process, or don't know what does a remortgage mean for your long-term finances, please get in touch.

Revolution Finance Brokers are independent, whole-of-market, and provide specialist remortgage expertise to ensure you make informed choices and select the most competitive remortgage options for you.

Almas Uddin
Almas Uddin

Founder and Mortgage Advisor

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Frequently Asked
Questions

When your remortgage is approved and completed, the new lender (or existing lender with a new product) transfers the funds to settle your original mortgage balance. If you are remortgaging to release equity, any balance will be transferred to you via online banking. Your solicitor will usually prepare the completion statements and register the change with the Land Registry, although you can deal with these administrative tasks yourself if you wish.

When you remortgage, you select either a new mortgage product with your current lender or a different mortgage with an alternative provider. The new lender transfers the funds to clear the original mortgage, and you then start making monthly repayments against your new remortgage.

A remortgage is a process of changing the mortgage against your property. The right options depend on multiple factors such as the property value, the equity you own, your finances and income, and your reasons for remortgaging. Most homeowners remortgage to switch to a different product with lower interest rates or because they are in a fixed-term contract which is about to end.

Most lenders will require a valuation to demonstrate what the property is worth. They use the valuation figure to assess the maximum they can lend (the Loan to Value), which is generally up to around 90%, although it could differ depending on the perceived risk linked with your application.

The easiest way to remortgage a home is to work with an independent broker who can recommend the right options, liaise directly with the remortgage lender, and check your paperwork and application to ensure everything is accurate and complete, avoiding any delays in reaching remortgage completion day.

Remortgaging simply means you take out a new mortgage to replace the one you have now. There are many reasons to remortgage, from switching to a more competitive deal, looking for a lender that offers greater flexibility to make overpayments, or because you want to raise capital from your equity to pay for home improvements, for example.

Remortgage offers tend to remain valid for up to six months, and the expiry date will be shown on the formal offer to lend you receive from your selected remortgage provider. What happens when you remortgage by accepting an offer? Provided none of the important details change (such as your income or credit score), the lender will be happy to arrange completion against your schedule. For example, if you have a fixed-term deal ending in three months, you can advise them of this and schedule completion to coincide.

What happens when you remortgage in terms of legal costs? Legal fees for remortgaging depend on the complexity of the process. Straightforward remortgages tend to cost around £300. However, many remortgage providers offer free legal services as an incentive to select their products for your remortgage, so you may find that there aren't any additional legal costs to budget for. It is worth double-checking the terms to ensure free legal services are truly free and there isn't an additional product or admin charge rolled up into your loan.

Remortgages usually take up to four or eight weeks to complete. What happens when you remortgage if the lender needs to schedule a full valuation, conduct additional affordability assessments, or refer the application to their underwriters to make a decision? You might find your remortgage takes a little more than two months.

You can remortgage any time you wish, and there are no limits on how often you decide to remortgage. What happens when you remortgage  in a fixed-term deal? It is usually advisable to wait until the contractual period ends because a lender will charge early settlement fees if you remortgage to another product or lender before the end of the term.

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The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature.

We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.

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