In this day and age speed is of the essence. With all the technology we have at our fingertips you would think that there would probably be an app on your phone enabling you to switch mortgage lender at the drop of a hat.
However I’m afraid it isn’t all that simple but do not despair! If you are keen to switch or get your hands on some extra cash for the all important new kitchen or bathroom you can still get remortgage relatively quickly.
The main reason it can’t happen instantly is that if you are remortgaging you are changing mortgage provider, this is a legal transaction. Therefore the new lender has to appoint a property lawyer (or you do) to carry out the usual checks, a bit like when you bought the house in the first place.
The usual process, once the mortgage application is underway, is that the lawyers send you – the borrower – and a questionnaire to complete. I always tell my clients that it is vitally important not to delay completing this, as it will have a real effect on when the mortgage will complete. If you are using a mortgage broker they will be able to assist you in completing the questionnaire. It is usually a bit repetitive and asks you the same questions your mortgage company will have asked; things like who your home insurance is with, who your existing lender is etc.
Along with the questionnaire they also send out a mortgage deed which has to be signed and witnessed.
How To Speed Up The Remortgaging Process
So given the above you think it would take weeks and weeks to sort out, sometimes this can be the case as you are reliant on the efficiency of the lawyers. However my record for a remortgage was seeing the clients on a Friday and the remortgage completed the following Friday.
How did this happen? Well lenders are becoming more innovative when it comes to the application process so the process to get you to mortgage offer can be really quick, potentially the same day!
Some high street lenders have really streamlined their systems with automated valuation systems so you don’t have to wait in for a day so the surveyor can come round and check the value of the property. Another innovation is a lender using data from your Experian credit report to verify your income so you don’t have to give them payslips (your broker still needs at least 3 months worth).
Depending on how much you want to borrow and how much your property is worth (what the Loan to Value is or LTV). The lender may see you as very low risk and issue the mortgage offer very quickly and instruct the lawyers straight away.
If you want to borrow more than you currently owe for home improvements then the lender may want to see plans and estimates, in which case the mortgage offer might not be that quick.
In summary I always say as a rule of thumb three to four weeks is the average time it takes for a remortgage to go through, but as I said above one week is certainly possible if you have all your paperwork in place and it’s a straightforward request.
If you would like to discuss your mortgage requirements in confidence, contact me for an informal chat to get started. Call 020 3355 4841 or email email@example.com