Remortgaging

Remortgaging refers to switching your mortgage from your current lender to a new lender and could be done a variety of reasons, including:

• to secure a better interest rate,
• to have lower monthly payments,
• to release equity from your home, or
• to change the type of mortgage.

Whether remortgaging is the right path for you will depend on your personal circumstances and your reasons, which is why it is always recommended that you seek advice before proceeding.

Generally, there are several benefits to remortgaging, including but not limited to:

• Lower interest rates: Remortgaging can allow you to secure a lower interest rate leading to lower monthly payments and significant savings over the lifetime of your mortgage.
• Releasing equity: Remortgaging can allow you to release equity from your home, which you can put towards home improvements, consolidating any debt, or investing in another property, either for you or to help your children onto the property ladder.
• Changing the type of mortgage: You can change the type of mortgage you have through remortgaging, such as switching from a fixed-rate to a variable-rate mortgage, which can suit your changing financial situation.
• Ending the fixed rate period: When the fixed rate period of your current mortgage is coming to an end, remortgaging can help you to find a better deal and avoid paying the higher interest rate.
• Flexibility: Remortgaging can offer more flexibility as you can choose different terms, such as the length of the mortgage and the type of interest rate.

It is important to note that remortgaging will also come with costs, such as legal and valuation fees, and you may be charged early redemption fees if you are exiting your current mortgage early.  We would always recommend that you consider the costs, benefits and your specific circumstances before making a decision, which we can assist you with.

The process of remortgaging involves applying for a new mortgage and paying off the existing one.  Typically, the following steps are involved:

1. Once you have found a suitable lender, you will need to complete an application form and submit it along with the required documentation, such as proof of income, source of funds and ID. This will also be required once you have instructed your Conveyancing Solicitor.
2. The lender will arrange for a property valuation to be carried out to ensure that the property is worth the amount of the mortgage you are applying for. Once this has been completed, the lender will send a formal mortgage offer along with the redemption statement from your current lender. This will show how much is outstanding on your mortgage and any early redemption fees that would be applicable.
3. Over the next stages, as your Conveyancing Solicitors, we will:
   1. check the title deeds of the property to ensure that there are no errors or omissions, and that the property is registered with the Land Registry,
   2. review the initial paperwork from your lender,
   3. arrange any searches that are required,
   4. prepare the legal documents required for your new mortgage, including the new mortgage agreement and the mortgage deed.
4. On the day of completion, we will handle the transfer of funds between your previous lender and your new lender, ensuring that the new mortgage is registered with the Land Registry.
5. Once all the formalities have been completed, you will be able to start making payments on your new mortgage.

Remortgaging is an important decision with financial consequences depending on your situation.  It is also a legal conveyancing transaction and so it is highly likely that a Conveyancing Solicitor will be required before and during the process.

In addition to the steps explained above, we will communicate with you, the new lender, and the current lender to keep you updated on the progress of the remortgage and to ensure that all deadlines are met.  We can also advise you on any potential issues that could arise, and provide you with the necessary guidance to resolve them, as well as attend to any other legal formalities and paperwork required.

The length of time it takes to remortgage can vary depending on a number of factors, such as the complexity of your situation, the lender you are using, and how quickly you can provide the required documentation.

Delays can normally occur if there are any issues with the title of the property or if the lender needs further information, however we will work with you and the lenders involved to resolve these as smoothly as possible to reduce delays.

On average, it can take between six to eight weeks to complete a remortgage.

Our top tips if you are looking to remortgage would include:

• Conduct sufficient research: Compare different lenders and their mortgage products to find the best deal for your specific circumstances.
• Check your credit score: Make sure your credit score is in good shape before applying for a new mortgage.
• Obtain a property valuation: While your chosen lender will conduct a valuation, it can be beneficial to arrange one yourself before applying so that you have an idea of the value of your property.
• Seek professional advice: Consult with a Conveyancing Solicitor and a financial advisor for professional advice on the remortgaging process and the options available to you.
• Be prepared: Gather all the required documentation, such as proof of income and ID, before applying for a new mortgage. This can save you time during the process if you have the paperwork ready as and when it is asked for.
• Be flexible: Be open to different types of mortgages, such as fixed-rate or variable-rate mortgages, to find the best deal for you and your situation.
• Check the small print: Carefully read and understand the terms and conditions of the new mortgage to ensure that it meets your needs and that you are comfortable with the terms.