Are you considering remortgaging your property and would like to be guided through the process by experienced remortgaging solicitors?
Although conveyancing for remortgaging is less complicated than when purchasing a property, the process does nevertheless involve some legal legwork.
The legal tasks associated with remortgaging process include (but are not limited to) carrying out property searches and leasehold checks, examining and confirming all terms and legal information and registration of changes with the Land Registry following transfer.
Expert remortgaging solicitors
At Elite Law Solicitors, our team possess the knowledge and expertise to assist you with completing the remortgaging process quickly, efficiently and with the minimum of fuss. We will guide you through the entire process, taking care of the necessary paperwork and carry out the relevant legal checks, whilst making the remortgaging process as quick and stress-free as possible.
In addition to office meetings, we offer remote meetings via telephone or video conferencing software such as Zoom or Skype and can assist you wherever you are based.
Remortgaging is the process of switching from your current mortgage deal to a new one. If you are staying with the same lender, this can mean simply changing the terms of your current mortgage, or it can mean switching to a new lender entirely.
Whether you are switching lender or not, we would strongly recommend getting the advice of experienced remortgaging solicitors before making any serious financial decisions related to your property. Our team of conveyancers at Elite Law Solicitors have extensive knowledge of the remortgaging process and represent clients throughout the country.
Here is what you can expect when you start the process to remortgage your home or property:
Requesting a redemption statement from your current lender
When you are nearing the deadline for your fixed rate with your current lender, you will receive a letter or email from them stating that expiry date. You will be provided with information on your rate of interest going forward, providing you all the details you need to know as to whether your current mortgage is still a fair deal for you.
If you would like to remortgage, you can request a redemption statement from your lender, which details the amount you will need to borrow should you choose to continue with your plan to remortgage.
Finding a new lender and completing your agreement in principle
If you have decided to remortgage, the next step is sourcing a new lender. Whether you use a mortgage broker or seek a specific lender out yourself, most mortgage services will be able to provide an Agreement in Principle. An Agreement in Principle includes information on whether a lender can lend you the amount needed to remortgage without the need for a hard search on your credit file.
Mortgage application and fees
It is essential to have a clear understanding of the costs and requirements for your mortgage application. We have covered the fees involved in remortgaging in detail below. Provided you have supplied all necessary documentation and valuations, and you have everything in place, you can make a formal application and instruct remortgaging solicitors to begin the conveyancing process for remortgaging.
Completing the process with the support of remortgaging solicitors
The input of experienced remortgaging solicitors is invaluable for the completion of your new mortgage. You will need to cover all required conveyancing elements similarly to your first application, so having the support of a knowledgeable remortgaging solicitor can make the process far more manageable. On completion, your mortgage will be transferred over, and any additional fees can be paid.
Should you remortgage?
There are many reasons you may decide to remortgage. A few of the most common are:
To secure a better deal with a different lender
To borrow more money, for example to finance home improvements
Because you have experienced a change of personal circumstances (a separation or divorce)
To beat an increase in interest rates
Whether remortgaging is right for you will depend on several factors. If your new mortgage is with the same lender, the process can often be a very simple case of signing new paperwork, in which case there is little reason not to switch.
If you are moving to a new lender however, the steps you need to take will be much more akin to the process you went through when first buying the property. Your new lender will require a valuation, may require searches (or no search indemnity insurance) and will expect your remortgaging solicitors to carry out adequate due diligence on the property.
Remortgaging can also involve hidden fees and charges you may not have anticipated. It is common practice, for example, for lenders to charge you a considerable fee if you choose to leave your current deal before the fixed-interest period has fully expired. It is extremely important that you check your contract carefully before making any decision to remortgage – consulting experienced remortgaging solicitors first will ensure you avoid any nasty surprises.
What are the benefits of remortgaging?
There are numerous benefits to remortgaging a property. Remortgaging is a popular option for many homeowners and here are some of the main reasons why you may want to remortgage:
Reducing your SVR rate at the end of your fixed-rate mortgage deal
When you apply for your mortgage, you will generally receive a two to a five-year fixed-rate mortgage. This fixed rate limits the amount of interest you can be charged, and when you are moved to a Standard Variable Mortgage, you may be paying twice as much as you expected for your property. If your SVR is far higher than your current rate, a remortgage is ideal for getting a better rate and saving costs.
Freeing up disposable capital for expenses
Another benefit of remortgaging is access to additional capital for valid reasons. For example, you may choose to remortgage your property to access funds for costly but necessary renovation work. You could also remortgage to consolidate debt, as mortgage rates are almost always lower than what you would pay on a personal loan or credit card.
Providing additional flexibility for your mortgage plan
If you have had a change in income or are just looking to do something different with your mortgage payments, remortgaging can provide the flexibility you need. If you have gone through a separation or divorce or a change in income, your requirements may be different from when you chose your mortgage in the first place.
In addition, if you have had a pay rise or have been awarded an inheritance, a remortgage can be an excellent way to reduce the time left on your mortgage. While some lenders offer overpayment, many do not, making remortgaging the most accessible way to be more flexible in your mortgage plan.
What are the disadvantages of remortgaging?
Depending on your circumstances and requirements, remortgaging is not always the ideal option for property owners. It is important to explore all the options available to you as a homeowner. Here are some of the disadvantages to remortgaging you may want to consider:
A remortgage may be a debt that will take longer to pay off
If you are remortgaging your property to reduce your monthly payments, you will also be increasing the amount of time you are paying into that mortgage. A remortgage can add anything from a single year to multiple years onto your final payment date, depending on what is available to you. It is important to carefully look at each option for remortgaging to see if it is worth additional years of debt.
Additional fees may apply to the remortgaging process
Much like your initial mortgage, you will have to pay specific valuation, conveyancing, and application fees for your remortgage. If you are choosing to remortgage when your fixed rate is not yet up, you may also be charged early repayment fees. Depending on your lender, these costs may be worth paying or may make the option to remortgage less accessible to you at that time.
Remortgaging takes time and requires prompt action
While remortgaging is more straightforward than first buying a house, there is still a great deal involved in the process. Experienced remortgaging solicitors can help you reach completion in less time. You will also need to ensure you are fast in providing information and completing applications to avoid additional fees or complications.
What are the costs of remortgaging a property?
If you are considering remortgaging your property, you will need to cover additional fees as part of the remortgage process.
Application fees: Also known as a booking or arrangement fee, this cost is charged for a lender to set up your remortgage.
Valuation fees: The value of your property will need to be confirmed before the completion of a remortgaging application.
Solicitor’s fees: In most circumstances you will need a solicitor to assist with the legal aspect of the remortgaging process. Having experienced remortgaging solicitors guiding you will ensure that the process is efficient and progresses smoothly from start to finish.
Additional fees may also apply depending on your choice of lender. These added costs typically apply if you are remortgaging outside of the specific window between fixed-rate and SVR on your current mortgage.
What is the conveyancing process for remortgaging?
If you are remortgaging a property, you are likely already familiar with what is involved in conveyancing for buying a new home. While remortgaging is slightly more simple, specific legal requirements must be met, and information must be provided. Experienced remortgaging solicitors will be able to handle and walk you through the entire conveyancing process.
Conveyancing for a remortgage includes the following:
Confirmation of identification
Details for your current mortgage
Property searches and leasehold checks
Property deeds checks
Examining and confirming all terms and legal information
Registration of changes with the Land Registry following transfer
Dealing with requirements of lease in leasehold property cases
How long does remortgaging take?
You can expect the remortgaging process to take approximately 3-4 weeks from when your new mortgage offer has been issued.
If you are staying with the same lender this time will be considerably shorter, whereas if you are re-mortgaging a leasehold property the process may take longer – between 6 weeks and 2 months – as information will also need to be collected from the property’s freeholder.
Do I need to instruct remortgaging solicitors?
You will need the support of remortgage solicitors if you are planning to remortgage your property. With legal documentation and a complete transfer process required, an experienced remortgage solicitor can ensure the process goes smoothly and every legal requirement is met in the process.
The single exception to this rule is if you are remortgaging with the same lender. This is known as a product transfer and does not include the additional legal work. In all other cases, the support of an appropriately qualified legal professional is required.
How much do remortgaging solicitors charge?
The cost of conveyancing for a remortgage depends on many different factors from the nature of the remortgage itself to the complexity of the process.
At Elite Law Solicitors, we favour quoting fixed fees, which will only change if due to unforeseen circumstances the process is taking longer than expected.
Whether you want to release equity to finance renovations or would just like to switch to a better deal, our expert remortgaging solicitors can help you.
Our accreditation through the Law Society’s Conveyancing Quality Scheme attests to our expertise in residential conveyancing, and our team have many years of experience in helping homeowners remortgage their properties.
One of our experienced remortgaging solicitors will have an initial consultation with you, free of charge, to discuss your situation in more detail. Once we understand your circumstances better, we can provide you with a clearer understanding of how we can help you. We will also provide you with a price quotation and a choice of funding methods at the outset.
Get in touch with our expert remortgaging solicitors
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