Many individuals have mortgages where the interest rates are fixed for a certain period of time.
Once that time has expired, it is not unusual for the homeowner to look to remortgage their property. Remortgaging is a process whereby you take out a new mortgage, usually with a new mortgage company, and repay your old mortgage.
For further information on how we can assist with a remortgage please contact one of our solicitors.
How to remortgage your property
Once you have looked into the current mortgage rates, either through your mortgage broker, online or directly with your Bank and have then chosen your mortgage lender and mortgage product, you should contact your solicitor to instruct them to deal with your remortgage.
Your solicitor will send you their initial documentation and terms of business, including a remortgage questionnaire to complete and return. This will provide information regarding yourself and the property, along with details of your existing mortgage to be paid off and the new mortgage you are looking to take out. Your identity will need to be verified with your solicitor, even if your mortgage broker and mortgage lender have already been sent this.
Your solicitor will need to check through your legal title by obtaining a copy via the Land Registry and check with you regarding any alterations or additions to the property, ensuring these are satisfactory and comply with statutory regulations and your new mortgage lender’s requirements.
Your mortgage lender will need to carry out a valuation of your property in order to protect their interest and ensure the property
provides them with adequate security. This will be arranged prior to the issue of your mortgage offer and a valuation fee is commonly charged to you by the mortgage lender, which is payable to them directly.
Once your mortgage offer is issued, a copy should be sent directly to your solicitor by your lender. You should check that your solicitor has received a copy of the mortgage offer in order for them to proceed with the remortgage work. The solicitor will then need to either arrange to carry out searches or arrange search indemnity insurance, depending on the instructions received from the individual mortgage lender.
When the mortgage offer has been checked by your solicitor, they will send you a letter reporting on the terms of the new mortgage along with the mortgage deed to be signed by you in the presence of an independent witness. The signed and witnessed mortgage deed is then returned to your solicitor.
The terms of the new mortgage offer will outline the conditions on which the mortgage is offered to you. This will include details of the monthly payments, interest rate, repayment term, any redemption penalty and further terms and special conditions which you must strictly adhere to throughout the mortgage term.
Your solicitor will ask your existing mortgage lender for an initial redemption statement which will show how much is required
to pay off the old mortgage and whether any redemption penalty will be payable. A final redemption figure will be obtained once the remortgage is ready to be completed.
Once your solicitor is in a position to arrange completion of your remortgage, they will request the mortgage advance from the new mortgage lender.
On the remortgage completion date, the solicitor will repay your old mortgage in accordance with the final redemption statement received and will send you the balance mortgage proceeds after deduction of the redemption figure, legal fees and disbursements.
Following completion of your purchase and mortgage, the new mortgage lender’s interest will be registered against your property’s legal title at the land registry. The mortgage will not be removed from the legal title until you have paid off the mortgage.
The mortgage lender will write to you directly to confirm the new mortgage payment arrangements.
Get in touch with our team of remortage advisers for guidance, or find your local branch for more information.