There are a number of factors to take into account when deciding whether to remortgage your property.
Specialist solicitors can advise you on whether it is in your best interests to remortgage, depending on your circumstances.
They can then provide practical advice on how to proceed and communicate with your bank, building society or mortgage provider on your behalf to get the remortgage finalised.
This blog will look at the role of a conveyancing solicitor in remortgaging, whether you can remortgage without one and an overview of the remortgaging process.
What is remortgaging a property?
Remortgaging a property refers to the process of replacing your current mortgage with a new one, either with your existing lender or a different one.
Homeowners may decide to remortgage for several reasons, including securing a better interest rate, releasing equity from their property, or changing the terms of their mortgage, such as switching from a variable rate to a fixed rate.
Remortgaging your property can also help you pay off debts or loans and provide the funds to make home improvements.
Before committing to remortgage conveyancing, it is advisable to check the terms of your current mortgage to assess whether you will have to pay any early repayment fees and how much it will cost to switch to a new mortgage. In some cases, the savings you would make by switching can be outweighed by the cost of doing so.
What is the role of a conveyancing solicitor when remortgaging your property?
Specialist conveyancing solicitors manage the legal aspects of the remortgage, whether you are transferring your mortgage from one lender to another or renegotiating the terms with your existing lender.
Before starting the remortgaging process, conveyancing solicitors can provide advice that is tailored to your specific circumstances on the potential risks or legal implications of remortgaging your property.
If you decide to proceed with remortgaging, your solicitor will liaise with the new lender to satisfy any conditions they may have, such as verifying your identity and the property's legal status.
Your solicitor will also review all of the mortgage documentation to ensure you understand the terms.
They will then liaise with the new lender to coordinate the payment of your existing mortgage in full and replace it with a new mortgage.
Once the new mortgage is in place, the solicitor will register the updated charge against your property with the Land Registry.
Do you need a solicitor to remortgage?
If you are remortgaging with a different lender, your current mortgage will need to be paid off and replaced with a new mortgage.
For this, you will need a solicitor to manage the legal process, including liaising with the new lender, reviewing the mortgage documentation and updating the charge at the Land Registry.
Can I remortgage without a solicitor?
In some cases, it may be possible to remortgage without a solicitor. If you are remortgaging with the same lender to get an advance on your existing mortgage or transferring to a mortgage with a better rate or terms, it may be possible to do so without a solicitor.
However, even in these circumstances, a solicitor can help you understand the implications of transferring and review the new terms.
What is the process of remortgaging?
- Confirming your identity - Once you have applied for a remortgage, your solicitor will verify your identity and may carry out money laundering checks.
- Verifying the title documents - Your solicitor will then verify the identity of each person named on the mortgage and property deeds.
They will also obtain the title registration documents for the property from HM Land Registry to confirm the legal owner.
- Reviewing the mortgage offer - They will then review the formal mortgage offer from the lender. This will include the lender’s requirements, which your solicitor will then gather the necessary information to satisfy.
You will need to provide a mortgage statement from your current lender to confirm how much is needed to redeem the mortgage.
- Apply for Local Authority searches - Your solicitor will apply for local authority searches to satisfy your lender’s property requirements.
They will also request an OS1 priority search and bankruptcy check, if needed.
- Sending the Certificate of Title - When the solicitor is satisfied that the owners and the property have satisfied the lender’s requirements, they will send a Certificate of Title to the new lender, asking them to confirm and release the remortgage funds.
- Completion - Before completion, your solicitor will confirm how much you need to pay to complete the mortgage and how much you will receive once the process is complete.
You will also need to cover any fees and disbursements, including:
- Legal fees.
- Local Authority search fees.
- HM Land Registry fees.
- Fees for ID and bankruptcy checks.
Upon completion, your solicitor will receive the funds from the new lender, which will be used to pay your existing mortgage and the fees and disbursements. You will then receive any remaining funds.
- Registering the new mortgage - After completion, your solicitor will register the new mortgage at HM Land Registry.
How long does the remortgaging process take?
The remortgaging process takes an average of four to eight weeks. However, it may take longer if more time is needed to satisfy the lender’s requirements.
You can help speed the process up by promptly providing any relevant information requested by your solicitor.
Are there any additional fees when remortgaging?
There can be, and it is important to be aware of any additional fees you may need to pay when remortgaging, as on some occasions, these can outweigh the savings you will make by switching.
Some common costs include:
- Exit fees – Exit fees may be charged by the lender when you have paid your mortgage in full or reached the end of your term.
- Arrangement fees – Arrangement fees are charged by the lender to pay for the cost of arranging a new mortgage.
- Early repayment fees – You may need to pay early repayment fees if you remortgage before your current term ends. It is important to know how much you will be charged to ensure it is not more than you will save in the long term.
Get in touch with our remortgage solicitors
If you are looking to remortgage a property and you would like to speak to one of our expert remortgage solicitors, we will be happy to hear from you.
We strongly believe in cost transparency and we strive to keep our fees as clear and understandable from the outset, enabling you to remain in full control of how much you spend on your remortgage. For an idea of how much your remortgage could cost, feel free to use our conveyancing calculator to the right of the page or call our conveyancing quote line on 01476 372 044.
Get in touch with our remortgage solicitors today for more information and advice on remortgaging your home or buy-to-let by calling 01476 372 044 or by filling in our enquiry form.
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