How does remortgaging work?


In the UK, remortgaging works by transferring one lender’s interest in your property and registering a new lender's interest in the property. In simple terms, remortgaging is when you change your mortgage lender because your current mortgage term has ended or you want a new mortgage deal.


The remortgaging process is a 4-8 week process that involves changing the property’s title deeds, having a surveyor value the house, and going through the correct legal conveyancing procedures to complete the transaction.


You can decide when you apply for a remortgage and which mortgage deal is most suitable for your circumstances. It is a good idea to consult a professional such as a mortgage advisor to help you find the best fit for you as there are many mortgage options available with different lenders.


Once you have chosen the new deal, you must apply for a decision in principle which will tell you how much money you can borrow for the remortgage and what your monthly repayments will be over what time period.


After this, you can apply for a remortgage which will involve giving information about your situation, the property, and your finances and giving supporting documentation such as bank statements and employment documentation.


The new mortgage lender will need to value the property to ensure that it provides security for the mortgage. They will ask a surveyor to review the property and give a market valuation.


You will need to instruct a conveyancer to change the terms of the mortgage including having the title deeds amended. Once the transaction is completed, your new lender will be transferred and you will need to pay monthly installments to them instead.



Is remortgaging easier than getting a mortgage?


Often getting a remortgage is easier than getting your first mortgage because you have already shown that you are able to pay the monthly installments on your property so the risk to lenders is lower. Sometimes if you remortgage your house with the same lender and just change the mortgage product, you can process this very quickly without having to hire a solicitor.

However, the process may be more complex if you have bad credit or have failed on some of your payments. 

What do banks check when you remortgage?

 

Depending on the lender, they may do checks on your credit history and will often check your current financial position such as your employment details. In addition, they will see how much has been paid off on the property and what the current market value of the property is. They essentially want to know that their investment is safe and that you are able to afford to pay them back and if you don’t, the value of the property will cover this. 

How can GloverPriest help you?

Remortgaging can be a great way to reduce your monthly repayments by finding better interest-rate deals. Sometimes the market can be ambiguous and interest rates can change quite suddenly. 

we have a team of reliable conveyancing solicitors on hand to help. Please do not hesitate to contact us today. Complete our enquiry form.

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At GloverPriest, we understand navigating the law can be a difficult task to take on alone. That’s why we created this comprehensive guide to help promote information for everyone to use.

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