Remortgage Solicitors

What does the term remortgage mean?

The term remortgage means to take out another or a different kind of mortgage on a property. It often involves switching your current mortgage to another deal with either your existing lender (bank) or a different lender.

The process of remortgaging doesn’t usually involve moving house or taking out a second mortgage on a property.

For most people, remortgaging is about saving money on your monthly repayments.

Why would someone want to remortgage?

There are a few reasons why someone would want to remortgage. Such as:

• The fixed term on your current mortgage deal is coming to an end. This means it is likely that your monthly mortgage payments will increase. By remortgaging, it enables you to find a deal that is better suited to you, for example by finding a new deal that allows you to pay fixed rate payments for longer
• Lower interest rates. Finding a new deal which offers lower interest rates means you will be paying less interest on your mortgage going forward
• More flexibility. Some mortgage deals allow you to make overpayments (lump sums above your monthly mortgage payments) without any penalties. This can be of benefit to enable you to pay off your mortgage quicker

Why do I need a Conveyancer for a remortgage?

If you are planning to move from one lender to another when remortgaging you will need a conveyancer to handle the legal side of the process. If you are sticking with the same lender, this is not essential.

Instructing a conveyancer to help with your remortgage is beneficial to help the process of moving from one lender to another as seamless as possible.

At JCP, your conveyancer will take care of the transition to ensure that the deeds and mortgage are with the new lender. During the process your conveyancer will need to:

• Check your ID
• Check the source of your funds if you will be using any of your own money
• Check the title deeds to ensure you are the legal owner of the property
• Check your current mortgage details
• Carry out property searches (some lenders will agree on an indemnity policy instead)
• Review the fine print of your mortgage offer
• Complete final searches and checks
• Send a Certificate of Title to your new lender
• Transfer the funds from your new lender to your old lender
• Register the new mortgage with HM Land Registry once your previous lender has confirmed receipt of the funds

Do I need to have searches when remortgaging?

If you are moving to a new lender, they may want property searches carried out before they commit to lending money against your property.

These searches may include, local search, water and drainage search, environmental search and in some areas, mining.

These searches will be ordered by your conveyancer and a copy of the results will be provided to you along with a report on their contents. If any areas of concern are highlighted, these will need to be reported to you and also will need to be brought to the attention of your lender.

Can I use a Solicitor who is not local to me to help with the remortgaging of my property?

Yes, in the majority of cases. With many technological options now available, Solicitors are able to verify your ID to comply with Money Laundering Regulations, keep you updated via your preferred method of communication and send documents for signature to you via email or client portal systems. Please note, that in some cases the lender may require you to meet face to face with your solicitor in which case, a local solicitor will be required.

How much does it cost to remortgage?

The cost of conveyancing fees for a remortgage depends upon the value of your property. When instructing a conveyancing solicitor to help with your remortgage you will need to consider the costs for the payment of:

• Legal fees, including ID checks and compulsory Land Registry checks
• Land Registry Registration Fees
• Bank Transfer Fee
• Office Copy Entries
• Searches (or No-Search Indemnity Insurance where appropriate)

Try our Conveyancing Calculator to receive your quote.

How long does the process of remortgaging take?

The remortgaging process can take between 6 – 12 weeks, depending on the circumstances. It is a good idea to start the process early to allow plenty of time to sort out your new mortgage deal.

What if I want to add my partner when I remortgage?

This can be done and would be a transfer of equity and remortgage. Your Solicitor would draft a transfer document to add your partner to the legal title of the property as well as their name being included on the mortgage deed. Depending on the value, there may be a liability to pay SDLT/LTT. Your Solicitor will advise you if this is the case. The transfer document will be registered at the same time as the mortgage deed. As there is additional work for this type of transaction, there will be additional costs.

My lender is offering free legals, do I have to use them?

Many lenders now offer free legal services for your remortgage. You will, however, need to use their preferred solicitors. There is nothing wrong with this but bear in mind that those solicitors are likely to have a huge number of cases which could mean your matter does not progress as quickly as you would like. Alternatively, you could see whether your lender would offer a cash-back alternative. If so, you can then use this towards your legal fees which would effectively not cost you anything/as much. This would mean you could instruct a solicitor of your choice, who could offer you expert advice and a faster, more personalised service with the money from the cash-back. Remember, it is your right to instruct a solicitor of your choice.

Try our Conveyancing Calculator to receive your quote.