Are you finding it difficult to remortgage your house or property? This article will explain why you need a solicitor to remortgage, whether with a different lender or the same lender
Do I Need A Solicitor To Remortgage?
It is cheaper to remortgage a home than to buy or sell one, but legal advice and paperwork are still necessary. A remortgage conveyancing solicitor in your region can help you with your remortgage if you decide to go that route.
Why remortgage your home?
Remortgaging your property has several advantages.
- People refinance for a variety of reasons, including:
- Changing your interest rate to one that is less expensive each month
- Taking advantage of the equity in your home
- Assisting you with your monthly budget by switching to a fixed-rate
- Reduce your monthly mortgage payment
In order to get the best mortgage deal, you must first figure out why you are remortgaging in the first place.
What happens on completion day for a remortgage?
You will receive any remaining cash from your new lender once your conveyancer receives monies from the new lender, and they will pay off your old mortgage (along with any fees) and send you the rest. You’ll be able to close on your new mortgage as soon as the Land Registry records are updated.
Do you need a search when remortgaging?
Depending on your new lender, your conveyancer will be required to perform a series of formal checks (searches). To ensure that no one other than the property’s declared owner(s) has a financial stake in it, title checks are performed. Additionally, the local authorities and other organizations may conduct searches to ensure that the property is free of severe problems that could detract from its value. It is common for many lenders to accept a search indemnity as an alternative to the more expensive and time-consuming process of ordering complete searches.
Your conveyancer will conduct a bankruptcy search just before closing to prove to the lender that you are still eligible for a loan. Remortgaging companies will do a title check to ensure that nothing has changed in the property’s ownership or interest since the process began.
What does a solicitor do for a remortgage?
The steps of remortgage conveyancing include the following:
ID and redemption checks
You’ll be asked for proof of identification by your conveyancer. Checking your current mortgage status will also include calling your current lender and obtaining a redemption statement from them. Details of any penalties or exit fees for early repayment of the mortgage are included in this statement.
Searches
You can rest assured that your new lender’s official checks will be handled by your conveyancer
Reviewing your mortgage offer
The new lender must verify that the loan amount does not exceed the property’s worth. They’ll conduct a mortgage valuation (sometimes known as a “valuation survey”) to do this. To do this, a surveyor may need to come out and look over the property and write out a brief report. However, the survey is more likely to be based on sales data in your immediate region, as well as a surveyor’s drive by the property. You should receive a formal refinancing offer as soon as the mortgage valuation is ready. Conveyancers will go over the details of the agreement with you to make sure you’re satisfied.
Fund transfer
The monies from your new lender will be delivered to your conveyancer as soon as everything is agreed upon. Conveyancers ensure that your former mortgage and all associated expenses are paid in full. Any remaining balance, such as if you’ve agreed to unlock a portion of the property’s worth, will be deposited into your bank account.
Updates the Land Registry
A new lender’s information is entered into your property’s deed by your conveyancer, who contacts the Land Registry on your behalf.
Do I Need A Solicitor To Remortgage With The Same Lender
This isn’t always the case. New mortgage product transfers are generally uncomplicated and don’t necessitate legal assistance. Any changes to your mortgage (such as the addition or removal of a borrower) will almost certainly necessitate the assistance of a solicitor.
With the same lender, remortgaging your home is a cinch. Straightforward. To get a mortgage from a new lender, you’ll need to gather all of your important paperwork (here’s a list of what you need), get your property appraised, and work with a lawyer.
If I remortgage with the same lender, do I need another credit check?
Even though we can’t speak for every lender, remortgaging with your current lender usually doesn’t necessitate a credit check. That’s because they’ve already established your reliability as a borrower.
Your existing lender may be more enticing to you if your credit rating has taken a dip since you first took out a mortgage.
How long does it take to remortgage with the same lender?
Typically, it takes six weeks to transfer to a new mortgage contract with the same lender from start to finish. Within a few days, you should be able to move from one deal to the next.
We always recommend that you give yourself at least four to six months before your current agreement expires to switch lenders.
How does remortgaging with the same lender work?
Typically, this is how it works:
- As the term of your loan comes to a close, your lender will likely contact you with a variety of rates and offers from which you can pick to keep you as a client.
- You can just select the deal that best suits your needs from the options that are presented to you. This may often be accomplished online in a matter of seconds with just a few mouse clicks.
- At this point, all that remains is for you to agree to the revised conditions. You’ve refinanced. There will be no additional fees or checks to pay for.
Using a mortgage broker, you can remortgage with the same lender.
Can you remortgage with the same lender?
If you meet their requirements, this may be an option for you. Remortgaging with the same lender is as simple as completing a ‘product transfer,’ which is what the name implies. Paying legal fees or hiring a lawyer will not be necessary.
ALSO, READ REAL ESTATE SOLICITOR
Do I Need A Solicitor To Remortgage With A Different Lender
For the duration of your mortgage, you are not obligated to continue working with the same financial institution. I don’t think it’s a one-time thing. The best rates can be found by shopping around with several different lenders over the course of time.
Advantages of remortgaging with a Different lender
Here are some advantages of remortgaging with a different lender
- Your purchasing power will soar as a result. Only a small portion of the mortgage market is available through your present lender. If you can locate a better offer, switching lenders may be a better financial choice than staying with your current one. We can assist you in finding the best option for your situation if shopping around feels overwhelming.
- Switching lenders may offer perks like rebates, a free valuation, or free legal fees. Incentives, such as introductory rates, are frequently used by a new lender to entice new consumers. In order to keep you as a customer, your present lender generally won’t offer you the same kind of perks.
- Your property will be assessed by an appraiser. There is normally a charge for this, but it can be beneficial to you because you may find that your Loan-to-Value (LTV) ratio has improved since you last checked. For the most part, a lower proportion of your loan-to-value ratio (LTV) will result in cheaper mortgage rates.
Disadvantages of Remortgaging with a Different Lender
The following are the backsides of remortgaging with a different lender
- There are going to have costs. Paying your existing mortgage lender’s departure charge while moving lenders may be necessary. You’ll need to hire a lawyer who specializes in property law (conveyancing) to handle the paperwork, which will cost you money. You will almost probably have to pay for a new appraisal of your property. There are, however, mortgage options that include these features at no additional cost. If you have a fixed-rate arrangement with your present lender and decide to leave before the term is up, you may have to pay an early repayment fee.
- Remortgaging takes longer because you’ll have to fill out a fresh application and begin the procedure all over again. Before making an offer, a new lender will conduct all of the typical affordability checks and examine your financial status.
How long does remortgage conveyancing take?
It will take longer to switch lenders if you refinance. The specific time frame will be determined by the number and length of searches required, as well as the workload of the lawyer, which should always be checked. If you’re planning to invest for the long term, aim for anything between two and three months.
Why Do I Need A Solicitor To Remortgage
When you remortgage, you don’t have to move out of your current home in order to get a new mortgage.
In some cases, a remortgage may be the best option for you if you want to release equity from your property, consolidate debts, or find a better mortgage arrangement with lower monthly repayments. Let’s take a closer look at why a remortgage requires the services of a solicitor.
Why do you need a solicitor to remortgage?
Remortgaging with a different lender does not necessitate the use of a lawyer or conveyancer. Title deeds will be transferred from one lender to the next, therefore this is why. The remortgage legal work will be handled by a solicitor, who will take care of things like:
- Your identity has been verified.
- To verify that you are the legal owner of the property, you must check the title deeds with the Land Registry
- Do anti-money laundering checks to verify the source of your mortgage-clearing cash.
- Performing a bankruptcy search to ensure that you haven’t been declared bankrupt already
- Verifying the new mortgage offer and the amount necessary to pay off your previous mortgage
- Money transfer between your new and previous lender
How much does it cost to remortgage?
Remortgaging a home will incur charges, although they should be lower than the costs of arranging a new mortgage. In order to ensure that the costs of remortgaging are not greater than the savings you would earn by switching to a new mortgage agreement, you must take into account all of the fees associated with the process. Remortgaging costs include the following:
- Fees charged by lawyers
- The cost of registering a home
- Fees for early redemption
- If applicable, any fees you may have to pay to switch providers.
- The price of an appraisal of real estate
You do not have to pay stamp duty on remortgaging if you are not transferring the legal ownership of the property.
How long does it take to remortgage?
Although it can be done in a matter of days, remortgaging with your present lender is best done over the course of a few weeks. The fact that they already have your information and a relationship with you speeds up the process. However, a credit check is still required to ensure that your financial situation hasn’t changed.
Do I Need A Solicitor To Remortgage FAQs
How long does it take to remortgage?
Although it can be done in a matter of days, remortgaging with your present lender is best done over the course of a few weeks. The fact that they already have your information and a relationship with you speeds up the process
Is remortgaging easier than getting a mortgage?
Remortgaging a home will incur charges, although they should be lower than the costs of arranging a new mortgage. In order to ensure that the costs of remortgaging are not greater than the savings you would earn by switching to a new mortgage agreement, you must take into account all of the fees associated with the process.
