Remortgaging is a normal part of having a mortgage - but it can feel a little overwhelming if you haven't done it before.

So how long does it take to remortgage? Are there any tips for getting through the process? How do you get the best new mortgage deal? And does it take any longer to remortgage and release equity?

How long does a remortgage take?

It usually takes four to eight weeks to remortgage, but it can be much longer or shorter depending on your choice of lender, broker, and your individual circumstances.

Borrowers are encouraged to start the remortgage process at least six months before the end of their current fixed package. This ensures they have enough time to find a suitable package, and gives their lenders enough time to prepare the paperwork.

While the bulk of the remortgaging work is usually complete several months before the end of the six month period, you need to wait for your mortgage to be transferred to your new lender - and this can only be done on the final day of your current agreement. So, while it typically takes four to eight weeks to remortgage, the process can feel much longer.

For example: a borrower - with six months until the end of their fixed rate - decides to start shopping around for a new mortgage. They enlist the help of a broker, who finds them a good deal. The resulting paperwork takes six weeks to sign.

On paper, the remortgaging process isn't over, but the borrower's role in it is. With just over four and a half months left until their current package expires, the borrower has secured a new deal, ready to transfer once their fixed rate concludes.

Do I have to wait until the end of the fixed period?

No! You can remortgage early and transfer your mortgage to a new lender - but you'll almost certainly incur Early Repayment Charges (ERC), and if you haven't got a good amount of equity built up in your home, this can make the process very expensive indeed.

When you take out a mortgage with a lender, you make an agreement to pay back your loan, with a certain amount of interest, for a specific period of time. Monthly repayments - with interest - are how lenders make money from borrowers. By remortgaging before the end of your fixed period, you prevent them from making any gain from you at all - hence ERCs.

What are Early Repayment Charges?

ERCs are a percentage of your outstanding loan, charged against the borrower upon their remortgaging before the end of the fixed rate.

For example: A borrower takes out a five year fixed rate (4%) mortgage of £225,000 to buy a house worth £250,000. They make monthly payments for four years, but then decide to remortgage a year early. Maybe they spotted a better deal due to falling interest rates.

Sadly, because the borrower agreed to stay with the lender for five years, they've breached the terms of their contract and now must pay a percentage of the outstanding loan. This could be anything from two to five per cent - a whopping £4000 - £11,0000 charge on top of standard remortgage fees.

Things to consider when you remortgage

• Check the terms and conditions of your current mortgage deal: Make sure there aren't any penalties for early repayment to worry about. Also, consider whether you're happy with the services of your existing lender - have there been, or are there any issues that could affect a future deal with them?
• Is your credit score in good shape? When you apply, your new lender will check your credit report details with credit reference agencies. This thorough check of your credit report can directly impact the acceptance of your mortgage offer.
• Think about your goals:. Consider why you actually want to remortgage. Do you want to reduce your monthly payments? How about paying off your mortgage sooner? Recognising your goals can help you find the right mortgage product. It's also worth considering your immediate future, whether or not your career, or earnings are due to change.
• Compare available deals: Do your research and compare available mortgage deals using various online resources. Knowing you've left no stone unturned will certainly help your choice when you're ready to make it.
• Hiring a mortgage broker: An experienced broker can prove extremely useful if you're trying to find out what the market has to offer. They can provide advice, guidance, and help you find the right mortgage for your specific circumstances.
• Consider all of the fees: When remortgaging, there may be fees involved such as arrangement fees, valuation fees, legal fees, and exit fees from your current mortgage. Be sure to factor in these fees when considering the overall cost of remortgaging.

How long does it take to remortgage and release equity?

The process of releasing equity with a remortgage is longer than a regular application because it requires a little more work. A typical remortgage involves a valuation from a lender, and some affordability checks. This can take six to eight weeks depending on your lender, broker, and individual circumstances.

Remortgaging to release equity requires an additional process of assessing how much equity you can release, and what the terms of the equity release are. This involves a separate valuation of your home, and an eligibility check for your equity release.

These additional procedures for an equity release can add anything from a few weeks, to a few months to your remortgaging process.

How can I speed up this process?

To speed up the process of releasing equity, it pays to be prepared. Calculate how much equity you have in your property - the difference between the value of your property and the amount you still owe on your mortgage.

Once you know how much equity you have, you'll need to apply for a new mortgage deal that allows you to release this equity. This can take longer than a regular mortgage application, as lenders may require additional documentation and may need to assess the value of your property more thoroughly.

You can usually borrow up to 90% of your property's value, but this depends on your lender and your individual circumstances.

Instructing a mortgage broker to help with finding a suitable package might also improve the speed and efficiency of remortgaging.

Is it quicker to remortgage with the same lender?

Yes, it can be quicker and easier to remortgage with your current lender. The underwriters are familiar with the details of your current loan and property. As such, you may not have to pass as many checks for them to justify your application.

If you're happy with your current lender and the terms of your mortgage, it may be quicker and easier to stay with them and simply switch to a new deal. However, if you're not satisfied with your current interest rate or terms, you may want to consider switching to a new mortgage lender to get a better deal.

Another factor to consider is the amount of equity you've got in your property. If you're looking to release equity, your current lender may not be able to offer you the best deal, and you may need to switch to a new lender to get the amount of funding you need.

When it comes to remortgaging, always shop around and compare deals from different lenders - regardless of whether you're considering switching or staying with your current lender. This can help you find the best possible deal for your circumstances and ensure that you're getting the most competitive interest rate and terms.

Should I use a mortgage broker?

Yes! Hiring a broker is a great idea if you're thinking of remortgaging. Experienced brokers can make the process quicker, more efficient, and ultimately, more lucrative.

Two years, five years, twenty years - a mortgage can have you locked into a financial arrangement with a bank for a long, long time. Consulting an experienced mortgage broker can help you make this arrangement count.

What is a mortgage broker?

A mortgage broker is a professional who can help you find and compare mortgage deals from different lenders, and can provide guidance and advice on which deal is best for you.

Benefits of using a broker

• Save time and effort: Mortgage brokers can save you time and effort by doing the research and comparisons for you. They have access to a wide range of mortgage deals and can help you find the best possible deal for your individual circumstances, which can be especially helpful if you have a complex financial situation.
• Extra guidance: Brokers can also provide guidance and advice on the remortgaging process, including what documents you'll need to provide, how to improve your credit score, and how to navigate any legal issues that may arise.
• Special insights: Some brokers know the banks and building societies really well, to the point that they can actively remember what certain underwriters prefer or hate on mortgage applications. This information can prove invaluable if you decide to hire one.

Disadvantages of using a broker

• Costs more: Using a broker can result in additional fees - these vary depending on the broker and the services they provide.
• Some limitations: Some brokers may be aligned with certain banks - this can limit the extent of their search for a suitable deal.

Remember: Brokers are useful, but your own research and due-diligence matters. Shop around to ensure that you're getting the best possible deal, even if you're thinking of hiring a broker.

How do I find a good mortgage deal?

You have two options - comparing deals online using websites like Comparethemarket.com and GoCompare, or hiring a mortgage broker. We recommend both.

There's no harm in scouting about on your end and learning what you can about the market - but a good broker will often make the difference. Mortgage brokers know how different banks and building societies work, and which are more likely to accept your offer based on requirements.

Are some mortgage lenders better than others?

Yes, some lenders are better than others - more specifically, some banks and building societies may be better suited to your individual circumstances, and the requirements of mortgaging your particular home. Although many parts of the mortgage process are similar across lenders, there are some differences that can affect the fees you're charged, and the services you receive.

Summary: Make significant time for a significant change

It's worth taking the time to consider your options when it comes to remortgaging, especially if your personal circumstances have changed. A change in career, or income, can affect your options significantly.

All in all, mortgages can be a stressful business - especially if interest rates are changing rapidly. Evaluating your potential for repayments, along with your future goals, will go a long way in helping you make your decision.