Remortgaging is the name given to the process of taking out a new mortgage on a property you already own. This often happens when your existing fixed rate mortgage deal is coming to an end to avoid being placed onto a standard variable rate, which is likely to be considerably more expensive; to replace an existing mortgage; or to borrow more money against your property.
There are many reasons why people choose to remortgage and it is essential to consider all the costs and the advantages and disadvantages of doing so before proceeding. This will ensure remortgaging is the best option for you:
Remortgaging with the same lender is often very straightforward, especially if you are changing from one fixed rate to another, and does not require the use of a conveyancing company; however, if you plan to move your mortgage to another provider, you will need to employ a licensed conveyancer to conduct the necessary legal aspects.
Most people who choose to remortgage their property will only change lenders if their existing mortgage provider cannot provide a competitive rate or is unwilling to adjust its criteria to suit their current financial situation. There are additional costs involved in changing lenders; however, if the savings offered by changing lenders are significant, these additional costs should be balanced against the savings on offer to ensure the right decision is made for long-term financial stability. It is useful to note that some mortgage companies offer the incentive of free legal fees on a remortgage if you use their preferred conveyancer.
A conveyancer’s role in remortgaging is to satisfy the needs of your new lender. They will check your identification and ensure you are the legal owner of the property in question. They will also check for any restrictions and charges on the title that could affect the ability to register the property with the new lender. For a leasehold property, they will notify the freeholder of the change in mortgage provider. They will also notify HM Land Registry of the remortgage.
The conveyancer will provide any information required by the mortgage company, such as local authority searches, planning permission, building regulations, and rights of way. When the conveyancer is content that the title is satisfactory and that you have sufficient funding in place, they will agree upon a date for completion, send the certificate of title to the mortgage lender, and request the release of the funds in advance of the completion date.
Choosing a conveyancer
Time is often of the essence when remortgaging, so it is sensible to choose a conveyancer that can offer you a dedicated point of contact, perhaps a fixed price, and a timeline of events so that you can be confident your remortgage will be completed within the required timescale. As the entire remortgaging process can be conducted online and is more straightforward than the initial purchase of a property, many people feel very comfortable choosing an online conveyancing specialist such as Sam Conveyancing to manage this process for them rather than relying on the traditional local solicitor.
Remortgaging can save significant amounts of money and enable you to pay your mortgage off in a more timely manner. Deciding whether to remain with your current provider or move your mortgage to a new provider will require an in-depth consideration of the costs and benefits associated with the decision. Should you decide to change your mortgage provider, it is important to factor in the additional legal costs to ensure the change represents overall value for money.