Considering the current conditions affecting mortgage rates, you may have heard others talking about ‘remortgaging’ their property. But what is it and what does it involve?
We have answered some frequently asked questions relating to remortgaging a property.
What is remortgaging?
Remortgaging is where you take out a new mortgage on a property you already own, either to repay an existing mortgage but at a better rate, or to borrow more money.
When you first get a mortgage, you may have been offered an introductory deal with a fixed low rate for several years. At the end of the term, the mortgage may automatically go to the mortgage lender’s variable rate, which is usually significantly higher than your previous fixed rate. However, there may be better deals and products available elsewhere. This means that you could find a better deal and save some money with a different mortgage lender.
Most people remortgage at the end of their fixed term. However, you can remortgage at any time, although you may incur early repayment charges if you do so before the end of your fixed term.
Should I remortgage my property?
You should obtain independent advice from your existing lender, financial, or mortgage advisor to establish what is best for your own circumstances.
Do I need a solicitor/conveyancer to remortgage my property?
Yes, you will need a solicitor/conveyancing to assist with the process. The conveyancer’s process of a remortgage transaction will involve:
- Redeeming any existing balance with the current mortgage lender and removing their registered mortgage from the Land Registry title; and
- Entering into the new loan with the new mortgage lender and registering their mortgage with the Land Registry.
What information will your conveyancer need?
Your conveyancer will need to know:
- The property address and obtain the Land Registry details;
- Your current mortgage account details; and
- The new mortgage lender details and have a copy of the offer.
How long does a remortgage take?
There are various factors that will impact how long a transaction would take. For example, there may be mortgage conditions that need to be complied with or Land Registry matters that need to be resolved prior to achieving completion of the remortgage.
How we can help
Our team, which is one of the largest teams of conveyancing solicitors in the East Midlands, provides specialist advice to hundreds of families in Derby, Leicester, and Nottingham to remortgage their homes every year.
If you require advice, please contact a member of our expert Residential Conveyancing team to discuss your circumstances.
Please call 0800 024 1976 or contact us via our online form.