Can You Remortgage With the Same Lender?

Remortgaging involves replacing an existing mortgage with a new one, either with the same lender or a different one. This financial transaction allows homeowners to adjust their loan terms, potentially securing a lower interest rate or accessing home equity. It is possible to remortgage with your current lender, a process often referred to as a product transfer. Homeowners consider this option for more favorable terms or to streamline financial arrangements.

Understanding Remortgaging with Your Current Lender

Homeowners often choose to remortgage with their existing lender due to convenience and a more straightforward process. The current lender already possesses a borrower’s financial history and property details, which can lead to reduced paperwork and faster approvals. This established relationship might also mean certain fees, such as valuation or legal fees, could be waived.

Continuing with the same lender offers familiarity with their payment systems and customer service. Some lenders may offer preferential rates or terms to retain existing customers. It is advisable to compare offers from other lenders to ensure the most beneficial deal is secured.

Preparing for Your Application

Before initiating a remortgage application, thorough preparation is necessary. Gather financial documents, including recent pay stubs (last 30 days) and W-2 forms (past two years). Self-employed individuals need to provide two years of tax returns and current profit and loss statements.

Applicants should also collect bank statements from the last two months, along with statements for investment or retirement accounts to demonstrate assets. Understanding current mortgage terms, such as the outstanding balance, interest rate, and remaining loan term, is important. Checking your credit score and addressing any discrepancies beforehand can improve loan eligibility. A credit score of 620 or higher is generally required for conventional refinances.

The Remortgage Process

Once documentation is prepared, the remortgage process begins with submitting the application to the chosen lender. This can be done online, over the phone, or in person. After submission, the lender orders a property appraisal to determine its current market value, though this may not always be required when staying with the same lender.

The application then proceeds to underwriting, where a loan underwriter reviews the borrower’s financial information, including income, assets, and credit history, to assess risk and confirm eligibility. This phase takes several days to a few weeks, but can extend to 30-45 days depending on the complexity of the application and the lender’s workload.

Upon conditional approval, the borrower may need to fulfill additional requirements before final approval. The final step is closing, where all loan documents are signed, and any applicable closing costs are paid. The entire remortgage process, from application to closing, generally takes 30 to 45 days, though it can range from 15 to 90 days.