What Happens During The Remortgage Process?
If your current mortgage deal is coming to an end, remortgaging can help you secure a more suitable interest rate, reduce your monthly repayments or even release equity for home improvements. However, many homeowners are unsure what the process actually involves.
It’s often the case that remortgaging is much more straightforward than arranging your original mortgage. Here’s a step-by-step remortgage guide to what you can expect.
Step 1: Review your current mortgage
It’s a good idea to start looking at your options around six months before your current deal ends. This gives you plenty of time to compare products and avoid automatically moving onto your lender’s Standard Variable Rate (SVR), which is often higher than fixed-rate deals.
Check:
- When your current deal ends
- Whether any early repayment charges apply
- Your remaining mortgage balance
- Your property’s current estimated value
These details will help determine which deals may be available to you.
Step 2: Speak to a mortgage broker
Rather than approaching one lender, speaking to a mortgage broker allows you to explore a wider range of mortgage products from multiple lenders.
A broker can:
- Compare available deals on your behalf
- Explain the differences between fixed, tracker and other mortgage products
- Assess your affordability
- Recommend options that suit your circumstances
- Handle much of the paperwork for you
This can save both time and money while helping you make an informed decision.
Step 3: Gather your documents
Although you’re already a homeowner, lenders still need to assess your application.
You may be asked to provide:
- Proof of identity
- Recent payslips or accounts if you’re self-employed
- Bank statements
- Proof of any additional income such as bonuses or overtime
- Details of your existing mortgage
Having these documents ready can help prevent unnecessary delays.
Step 4: Submit your application
Once you’ve chosen a suitable mortgage, your broker will submit your application to the lender.
The lender will review your:
- Income
- Outgoings
- Credit history
- Loan-to-value (LTV) ratio
- Property details
Some lenders may carry out a physical valuation, while others use an automated valuation based on recent property data.
Step 5: Receive your mortgage offer
If your application is successful, the lender will issue a formal mortgage offer.
This document confirms:
- Your interest rate
- Monthly repayments
- Mortgage term
- Any fees or conditions
Your broker will explain everything clearly so you know exactly what you’re agreeing to.
Step 6: Legal work and completion
Many remortgages require legal work, although it’s usually much simpler than when purchasing a property. In many cases, the new lender will provide a solicitor or licensed conveyancer at no additional cost.
The legal representative will:
- Repay your existing lender
- Register the new mortgage
- Complete the transfer
Once everything is finalised, your new mortgage begins and your monthly payments will switch to your new lender.
Don’t leave it until the last minute
Starting the remortgage process early gives you more choice and reduces the risk of paying a higher interest rate if your current deal expires before your new mortgage is ready.
An experienced mortgage broker can guide you through every stage, answer your questions and help you secure a mortgage that meets your current needs.