If you are simply remortgaging your home with the same mortgage lender, you do not need a solicitor. However, if you are borrowing from a new mortgage lender or adding or removing people changing the ownership of the property, you will require legal work and a new solicitor.
Likewise, if you are taking someone off the mortgage you will require the assistance of a solicitor as a change in ownership of property needs to be recorded at the Land Registry.
Royce Legal Solicitors deals with remortgaging cases all year round and are specialists in residential conveyancing. For an initial consultation, please 01706 655 592
What does remortgage mean?
Remortgaging your property means changing the current mortgage on your property by moving to a different lender.
In simpler words, if you change your mortgage but continue with the same lender, then this is considered remortgaging (granted the terms of borrowing have not significantly changed), and you do not require legal work to be done for you to proceed.
Why do I need to remortgage?
There are various reasons why one would choose to remortgage their property. The reason can be changing your lender for a better interest rate (on what you owe) to cut down costs. Likewise, you might need to borrow more money when you remortgage.
Another reason why people remortgage (and the most common one) is to find a better deal elsewhere from another lender – in the hopes of making a significant difference to what is repaid each month or what remains of the mortgage.
You can also extend the borrowing term when you remortgage to lower your monthly costs – it means you will have to repay more in the long term. Similarly, some homeowners may remortgage to shorten their term, so they can pay off quicker by paying more monthly.
Remortgaging allows you to borrow money against the equity of your property currently to refurbish and renovate the property or need a “lump sum” amount for other reasons. If the worth of the property has risen, the owner can release some of its equity by remortgaging.
If your current mortgage plan is “interest-only,” you may want to change to a repayment mortgage on your property or house. Please consider that if you are in a specific mortgage deal that is not on the standard viable rate (SVR) from your lender, then remortgaging will result in early repayment fees being due because of your existing lender. So before you consider remortgaging, work out the pros and cons of it.
Can I remortgage on my own?
Homeowners remortgage as a way to make significant savings on interest or raise capital for their needs. Nonetheless, remortgaging might not be the best solution or be possible, for everyone, depending on your situation.
You can remortgage if the following stands true:
- The worth of your home has increased in value since you bought it. It will give you more equity in the property.
- Your financial circumstances are now better (or equal) to when you got your current mortgage plan. Simply put, your income has increased.
You cannot remortgage if:
- There has been a decrease in your income since you got your current mortgage plan
- The value of your property has decreased to a point where you are in “negative equity.”
- Your credit record has been impacted negatively since your current mortgage.
- The amount owed on your mortgage is small. Some lenders do not offer a mortgage for an amount less than £25,000.
How does remortgaging work?
As mentioned above, remortgaging is simply the process of applying for a new mortgage. You will provide the same identity, affordability and credit info as you did the first time. A remortgaging conveyancing solicitor will advise you when whether remortgaging is beneficial for you. They can handle the legal side of the entire process – checks and searches on the property, liaise between lenders and valuation surveys (if required) by the new lender.
The ideal time to start making enquiries for a remortgage is three months before your current deal expires with your existing lender. This time frame is not a standard. You can start anytime if you are already on their SVR (standard variable rate).
Remortgaging involves the following steps:
- Go through your current deal to ensure that you have all the information regarding:
- The interest rate currently being paid by you,
- The type of mortgage plan you have,
- The remaining term of your current mortgage plan
- The monthly payments you make
- Find a new mortgage deal according to your requirements. You can conduct research yourself by using a comparison website. Or you can hire a broker who will match your requirements with a lender that offers you a good deal or mortgage. You can also ask your existing lender to see if they will match the new deal you’ve found.
- Apply for the mortgage deal of your choice.
- Instruct your conveyancing solicitor,
- Waiting on the final decision on your remortgage application.
We urge that you give us a call at (insert number) for more information on the process for more clarity.
How long does remortgaging take?
The length of time for the process varies depending on how complex your transactions are. Roughly, it may take about six to four weeks.
Do I need a solicitor to remortgage?
We’ve addressed this at the beginning. If you are simply switching your mortgage or borrowing more from your existing lender, then you do not require a solicitor. However, if you are remortgaging with a different lender, then a solicitor is required for legal proceedings.
Likewise, the addition or removal of individual(s) such as a partner from the mortgage will also require conveyancing solicitor’s assistance.
Remortgage conveyancing cost
Remortgage solicitor fees are dependent on various factors such as:
- The conveyancer’s rates,
- The location of your property,
- The property’s value
- Complexities that apply to your specific circumstances.
There are also remortgaging legal fees involved, which are fixed, from third parties. These include ID checks, the latest property valuation survey and recording ownership changes with the Land Registry.
For a quote based on your situation, please contact Royce Legal Solicitors at (insert number).
Why Choose Royce Legal Conveyance Solicitors for Remortgaging
For a smooth, legal process, when remortgaging, use professional and experienced conveyancing solicitors you can trust.
Royce Legal Solicitors customer service satisfies our clients and assures them that their case is in safe hands. For more information on our conveyancing services, contact our conveyancing team 01706 655 592, for a free initial consultation.