Remortgaging your home can seem complicated, especially if you’re not sure what happens on the actual completion day. Understanding the process can make it less stressful and ensure everything runs smoothly. Here’s a clear breakdown, step-by-step, of what to expect on your remortgage completion day in the UK.
What is Remortgage Completion Day?
Simply put, remortgage completion day is the official date when your existing mortgage ends and your new one begins. It’s when all the legal and financial transactions tied to switching mortgages are finalised.
How is a Remortgage Completion Different from a Normal Mortgage Completion?
A remortgage completion day shares some similarities with the completion of your first mortgage—funds are transferred, and your solicitor finalises all the paperwork. However, there are a few key differences worth noting.
When you buy a property for the first time, completion involves transferring ownership from the seller to you. It’s about receiving the keys and gaining legal ownership of your new home. There’s usually a physical element involved: you’re moving in, collecting keys, and taking over the property.
With a remortgage, things are simpler because you already own the property. There’s no change in ownership, no keys handed over, and no physical moving day. Instead, remortgage completion focuses purely on financial and legal formalities—your existing mortgage is paid off, and your new one officially begins.
In short, remortgage completion is less complicated, less physically demanding, and usually quicker. It’s primarily about ensuring the financial transfer between your old lender and new lender is completed efficiently, rather than transferring ownership or physically moving home.
What Happens on Completion Day?
Here’s what typically takes place:
Final Checks by Your Solicitor
First thing on the day, your solicitor or conveyancer will make final checks to confirm that everything is in order. They’ll ensure all the paperwork is correct, verify the final amount owed on your existing mortgage, and confirm receipt of funds from your new lender.
Repayment of Your Old Mortgage
Once your solicitor receives the funds from your new lender, they’ll pay off your old mortgage in full. This happens through a bank transfer, and your existing lender will confirm once they’ve received payment and your mortgage is settled.
Confirmation and Registration
Your solicitor will officially confirm the completion has happened. They’ll then inform you, your old lender, and your new lender that the transfer is complete. After completion, your solicitor registers your new mortgage with HM Land Registry. This updates the legal records, showing your new lender as the holder of the mortgage on your property.
Transfer of Remaining Funds (If Applicable)
Sometimes, if you’re borrowing extra money against your property (perhaps for home improvements or debt consolidation), your solicitor will transfer this additional amount directly into your bank account on completion day. You should confirm the timing and details of this in advance with your solicitor.
How Long Does It Take on the Day?
Most of the time, remortgage completion happens quickly—often by midday. However, it can occasionally take until late afternoon, particularly if there are delays in transferring funds. Your solicitor will update you immediately if there’s a delay, so it’s wise to stay reachable throughout the day.
What Problems Can Occur on Completion Day for a Remortgage?
Although most remortgages go smoothly, occasionally issues can arise on completion day. Being aware of potential problems helps you prepare and reduce stress. Here are some common issues to watch out for:
Delays in Funds Transfer
Sometimes, funds from your new lender don’t reach your solicitor promptly. This delay can happen due to technical banking issues or slow administrative processes. Although rare, it can mean completion is pushed back by hours or even to the following working day.
Errors in Redemption Statements
Your existing lender issues a redemption statement outlining the exact amount required to clear your mortgage. Mistakes or miscalculations in this document can delay completion. Your solicitor would need to request corrections before transferring funds.
Last-Minute Legal or Administrative Issues
Occasionally, your solicitor might discover missing paperwork or errors in documentation just before completion. This might require you to urgently provide additional information or signatures, potentially causing delays.
Communication Problems
If communication between your solicitor, your old lender, and your new lender breaks down, delays become more likely. Ensuring you have an experienced and responsive solicitor can significantly reduce this risk.
Unexpected Fees or Shortfalls
Rarely, you might discover you owe more on your existing mortgage than initially calculated, leaving you needing to quickly transfer extra money to cover the shortfall. Clarifying the exact amounts with your solicitor beforehand can help avoid this.
While these problems aren’t common, staying organised, communicating proactively, and regularly checking details with your solicitor can greatly reduce the chance of encountering issues on remortgage completion day.
What Should You Do on Completion Day?
Stay contactable: Make sure your solicitor can easily reach you in case of questions or last-minute paperwork.
Check your bank account: If you’re expecting surplus funds, monitor your account later in the day.
Be patient: Occasionally, delays occur with funds transfer. Don’t panic if you haven’t heard anything by noon; it’s normal for some completions to happen later in the day.
How Long Does a Remortgage Take?
Typically, a remortgage takes around 4 to 8 weeks to complete from the moment you apply to your new lender. This timeframe can vary depending on factors like how quickly paperwork is processed, the responsiveness of your solicitor or conveyancer, and how straightforward your personal circumstances are.
Here’s a general timeline to help you understand each step:
- Week 1–2: Your lender processes your mortgage application, carries out affordability checks, and arranges a valuation of your property if needed.
- Week 2–4: Your solicitor or conveyancer carries out legal checks, obtains redemption statements from your existing lender, and prepares all necessary documents.
- Week 5–7: Formal mortgage offer from your new lender arrives, allowing your solicitor to prepare for completion.
- Week 8: Remortgage completion day takes place—your old mortgage is paid off, and your new mortgage officially begins.
However, the process may be quicker if your case is straightforward, or it could take longer if complications arise—for example, if there’s an issue with valuation or delays in legal paperwork.
To help the process run smoothly, respond quickly to any requests from your solicitor or lender and keep an open line of communication. This can significantly reduce delays and ensure your remortgage completes within the expected timeframe.
After Completion Day: What Next?
Once completion is confirmed:
- You’ll start repayments to your new lender according to your new mortgage agreement.
- Your new lender will usually write to you soon after completion, confirming the details of your mortgage and first payment date.
- Any remaining documents or paperwork will be sent to you by your solicitor or conveyancer within a few days.
When is a Good Time for Remortgaging?
Choosing the right time to remortgage can help you save significant amounts of money. Here are some key moments when remortgaging makes the most sense:
When Your Current Mortgage Deal Ends
Most mortgage deals, especially fixed-rate mortgages, last around two to five years. Once your initial deal ends, your lender moves you onto their standard variable rate (SVR), which is usually higher. Remortgaging just before your current deal ends avoids this increase and keeps your payments low.
When Interest Rates Are Low
If interest rates drop significantly, it’s worth checking whether remortgaging could secure you a better rate. Even a slight reduction in interest rates can mean notable savings in monthly repayments.
When Your Home’s Value Has Increased
If your property’s value has risen significantly, remortgaging could unlock better deals. An increase in your home’s value can lower your loan-to-value ratio (LTV), giving you access to more attractive mortgage rates.
When You Want to Borrow More
If you’re considering home improvements or debt consolidation, remortgaging could be a cost-effective way to raise funds. Borrowing through a remortgage is often cheaper than using personal loans or credit cards.
When Your Financial Situation Improves
If your income or financial situation has improved, you might qualify for better mortgage terms. Remortgaging could help you secure lower rates, shorter loan terms, or more flexible mortgage conditions.
By timing your remortgage carefully and keeping an eye on both your personal circumstances and wider economic conditions, you can make sure you choose the ideal moment to switch.
How Do I Find a Remortgage?
Finding a remortgage deal that suits your needs involves research and careful comparison. Here’s a straightforward guide to help you get started:
Start by Checking Your Current Mortgag
Begin by reviewing your existing mortgage to see when your deal ends. If you’re nearing the end of your fixed-rate period or introductory deal, it’s the ideal time to remortgage to avoid paying your lender’s standard variable rate, which is usually higher.
Use Online Comparison Tools
Online comparison sites are an excellent starting point. Websites such as MoneySuperMarket, Compare the Market, or MoneySavingExpert can give you a quick overview of available deals. These tools let you compare interest rates, monthly repayments, fees, and other features quickly.
Speak to Your Existing Lender
Before switching lenders, talk to your current mortgage provider. They might offer you a competitive deal to encourage you to stay. This can save time and reduce costs, as it avoids valuation and legal fees sometimes associated with moving to a new lender.
Consult a Mortgage Broker
A mortgage broker or adviser can simplify the process. They’ll review the market, advise you on the most suitable deals based on your personal circumstances, and often have access to exclusive deals you won’t find online.
Review Terms and Fees Carefully
Always carefully check the terms, conditions, and any fees associated with the remortgage deals you’re considering. Look out for valuation fees, arrangement fees, and any penalties if you decide to leave the mortgage early in the future.
By following these steps, you’ll find the right remortgage deal and potentially save thousands of pounds in interest and repayments over the duration of your loan.
FAQs
A remortgage means moving your current mortgage to a new lender or renegotiating terms with your existing lender. People usually remortgage to benefit from better interest rates, to borrow extra money, or to adapt their mortgage terms to suit their financial situation better.
The process includes applying for a new mortgage, undergoing a property valuation, and completing legal checks. Once approved, the new mortgage pays off the existing one, and you start repayments under the new terms.
The amount depends on factors like your income, property value, and existing equity. Lenders assess these to determine your borrowing limit.
Yes, but check for early repayment charges on your current mortgage, as they can be substantial.
Yes, you’ll need a solicitor or conveyancer for your remortgage. They handle essential legal tasks such as verifying your identity, managing paperwork, dealing with your old and new lenders, and registering the remortgage with HM Land Registry. Having a professional ensures the process runs smoothly and legally.
Legal fees for remortgaging typically range from £300 to £600, depending on your solicitor and the complexity of your situation. Some lenders offer free legal services as part of their remortgage packages, but it’s wise to check exactly what’s included. Always clarify costs upfront to avoid unexpected charges.
To achieve remortgage completion, you need to:
– Choose your new mortgage deal and submit an application.
– Work closely with your solicitor, providing all requested documentation quickly.
– Sign all necessary legal paperwork promptly.
– Be contactable on completion day in case your solicitor needs to confirm details or handle last-minute queries.
When you remortgage your house, you switch your existing mortgage to a new deal, either with your current lender or a different one. Your new lender pays off your previous mortgage, and you then start making repayments under the terms of your new agreement. People typically remortgage to benefit from lower interest rates, borrow extra money, or adjust their mortgage terms to suit their financial situation.
Yes, most lenders will carry out a property valuation before agreeing to your remortgage. This helps them determine the current market value of your home and ensure that the amount you’re borrowing matches the property’s worth. Some lenders offer a free valuation as part of their remortgage package, but you should confirm this upfront.
Yes, remortgage completion occurs on a specific date agreed in advance by you, your solicitor, and your new lender. Completion typically happens during normal working hours, often in the morning or early afternoon. Your solicitor will confirm the exact timing nearer the day, but it’s wise to remain contactable on completion day in case any queries arise.
After your lender issues a formal mortgage offer, your solicitor prepares for completion. This includes finalising documents, conducting final legal checks, and obtaining an accurate redemption statement from your current lender. On the agreed completion date, your solicitor transfers the new mortgage funds to pay off your existing loan, and your remortgage becomes active.
You can generally remortgage your house at any point, but it’s most advantageous at certain times—usually when your current fixed-rate or introductory mortgage deal is nearing its end. Remortgaging too early could incur early repayment charges. It’s ideal to begin looking at remortgage options about three months before your current deal finishes to ensure a smooth transition and to avoid paying higher standard variable rates.
Yes, if you’re staying with the same lender—often called a product transfer—the process is usually simpler and quicker. Because the lender already has your details, there are usually fewer checks required. There’s typically no need for a new property valuation or detailed legal work, making the completion process smoother, faster, and often cheaper.
If you’re borrowing extra money against your home—known as releasing equity—you typically receive these funds on the remortgage completion day. Your solicitor transfers the money directly to your bank account once your existing mortgage has been paid off, usually by the end of the completion day or shortly afterwards.
When you remortgage with a broker, they help guide you through the entire process. Brokers assess your financial situation, recommend suitable mortgage products, and submit applications on your behalf. They handle communications with lenders and can often access better or exclusive deals. Brokers aim to simplify the process and usually help you complete your remortgage smoothly and efficiently.
If you need a quick remortgage—for example, to avoid higher interest rates or financial difficulty—certain lenders and brokers offer streamlined or fast-track options. Choosing lenders that specialise in speedy transactions, using a broker to handle paperwork, and responding promptly to all requests helps speed up the process. However, even quick remortgages generally take a minimum of two to four weeks due to necessary legal and administrative checks.
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