UK homeowners face higher interest costs due to remortgage delays

Delays in completing remortgage paperwork could cost UK homeowners hundreds of pounds in additional interest if they are forced onto a lender’s standard variable rate (SVR). According to analysis by conveyancing firm RG Law, a four-week delay could result in approximately £138 in extra interest for a £150,000 mortgage, £230 for a £250,000 mortgage, and £322 for a £350,000 mortgage.

For a borrower with a £350,000 mortgage, a six-week delay could lead to an additional £483 in interest. These calculations are based on an average SVR of 7.13% compared to an average two-year fixed rate of 5.93%.

RG Law identified several causes for these delays, including outstanding identity documents, incomplete client forms, and late returns of signed mortgage deeds. Other factors such as obtaining redemption figures from existing lenders or information from freeholders for leasehold properties can also impact completion times. The firm advises homeowners to prepare paperwork early to avoid these unnecessary costs.