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Our specialist conveyancing team aim to make the conveyancing process as simple and stress-free as possible.
Remortgaging your home can be highly beneficial to you especially if you’re doing it at a time when interest rates are fluctuating. If you want to save money, release equity to pay off debts, or find a better rate for you, remortgaging can help you do this.
Since there are so many options available, it can be difficult to work out which steps you should take to proceed with your remortgage.
We are here to guide you through the remortgaging process. Our specialist conveyancing team aims to make the conveyancing process as simple and stress-free as possible.
Remortgaging is when you change your current mortgage deal with another. This could mean changing the terms of your existing mortgage with your current lender (which lenders sometimes offer at the end of your current fixed interest period) or it can mean changing lenders altogether. Quite simply, the new (remortgage) replaces your old mortgage.
The remortgage process involves transferring the lender’s interest in the property and registering the new interest. The title deeds will need to be obtained and details need to be changed in relation to which lender has a charge on the property. The property will also need to be valued by a surveyor to calculate the current market value.
Once you have decided that you should apply for a remortgage, the next step is to find the best mortgage deal for you. Depending on your circumstances (the term of your mortgage, the amount of equity in the property, and which type of mortgage you want) you can choose the most suitable remortgage option.
The next step is to apply for a decision in principle which will outline how much you can borrow and how much the monthly repayments will be.
The remortgage application will involve completing information and providing supporting documentation.
Legal documentation will need to be completed since you will be changing the terms of your mortgage.
Your property will need to be valued by the mortgage lender to ensure that it provides security for the mortgage.
Once all the checks and details have been transferred from your old mortgage to your new one, you will be told when your new mortgage repayments will begin.
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. If you can fix your mortgage at a set interest rate, this means that you don’t become affected by any sudden rises in interest rates. Higher interest rates mean higher repayments.
In addition, a remortgage can be a good idea if you need to release equity to pay off debts or pay for home improvements.
The remortgage process can take around 4-8 weeks once you have applied.
Over time, when you pay off your mortgage, you build up equity in the property. This is the amount that you own outright. Remortgaging can allow you to release equity from the house and borrow against the value of the property.
This means that you can take out a chunk of money from the equity that has been built up. Your new mortgage will then reflect the new amount of equity you have in the property.
This may mean that your new mortgage repayments will increase since you are borrowing more from the lender as you have less equity in the property.
A remortgage is usually arranged when you come to the end of your mortgage term, if you are seeking a better deal or planning to release equity or borrow money against the property.
If you are coming to the end of your current mortgage term or it has already ended, it is a good idea to check your remortgage options. If your property has increased in value, it is likely that your loan-to-value ratio is higher, which will give you a better range of options when it comes to remortgage deals.
The best time to remortgage is whenever it is right for you. For instance, if you want to pay lower monthly payments you can search for a better rate deal, or if you want the opportunity to pay off bigger chunks of your mortgage, you can look for a mortgage that allows you to do this.
When getting a remortgage, it is important to consider the costs involved, these can include the following:
If you are remortgaging your property, you will need a property lawyer to represent your interests as well as those of the lender.
In some cases, if you are applying for a remortgage with the same lender, you may not need a conveyancer as this is often considered a product transfer. However, you should check this with the lender first.
When you remortgage, the lender will be holding the deeds to your house and therefore you need a conveyancer or a solicitor involved in the process. The conveyancing process starts once an offer has been made by a lender and the owner of the property has confirmed and accepted that offer.
When remortgaging a leasehold property the conveyancing process involves additional steps beyond the standard process which your conveyancer can assist you with.
Firstly, they will need to check that the length of time remaining on the lease meets your new mortgage lender’s requirements. Many lenders will be reluctant to offer a mortgage on a leasehold property with 70 years or fewer left on the lease.
Your conveyancer will also need to collect details of your service charges and ground rent from your landlord or their agent, as well as a copy of the property’s buildings insurance documents.
You will also need to provide a copy of your lease (which you should have) to your new mortgage lender. If you do not have a copy of your lease, your conveyancer can request one from the Land Registry.
Since you aren’t moving house and are simply applying for a new mortgage on your home, the process should be smooth sailing. However, this does not always happen in reality as unexpected issues can crop up.
At GloverPriest, we understand that when it comes to remortgaging, you want to ensure that the process is as stress-free as possible. Our remortgaging solicitors are here to support you through the whole remortgaging process and to provide a reliable and efficient service.
Our property lawyers have plenty of experience handling residential property transactions and can assist you with the following:
Please do not hesitate to contact us today to see how we can help you.
GloverPriest Solicitors is regulated by the Law Society's Conveyancing Quality Scheme (CQS). This means that our conveyancing practice standards are set high.
The Conveyancing Quality Scheme is the recognised quality mark for legal experts in property and is trusted by some of the UK’s biggest lenders.
This accreditation gives you the guarantee that our service will be a professional and quality conveyancing service.
If you need help with remortgaging your property, please contact us today for advice on your next steps.