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How does remortgaging work?

What is remortage?

Remortgaging is the process of paying off one loan amount with another loan, using the same property as your security. It is usually done to release equity in your home and to reduce the monthly mortgage payments by getting a better deal.  

Do I need a conveyancer when remortgaging with my current lender?

If you are remortgaging with your current lender to a new product or rate, this is known as a product transfer. It requires no legal work and so a conveyancing solicitor is not required.

Do I need a conveyancer if remortgaging with a different lender?

The answer here is yes. There is legal work required when transferring to a new lender. Some lenders will cover the costs of the legal fees within their remortgage deals, but it is important to check how much this is as it could be worth finding your own conveyancer at a more competitive rate.

Some situations, such as adding or removing a person from a mortgage, may mean you have to instruct your own conveyancer. It’s always worth getting a comparison for conveyancing costs so you know what to expect.

How does remortgaging work?

Although not as complicated as the conveyancing process when buying or selling a new home, there is certain legal work that needs to be carried out by a conveyancing solicitor and conveyancing costs that need to be taken into account.

An overview of the legal work a conveyancer will carry out is as follows:

• ID checks and a bankruptcy check
• Request and review of the redemption statement from the current lender to check for any outstanding or redemption fees
• Review of property searches if the lender requires them
• Deal with the issuing of the formal mortgage offer
• Check through the terms of the mortgage offer
• Register changes with the Land Registry

How do I remortgage?

You need a range of information in order to proceed with a remortgage as follows:  

Bank statements - for the last 3 months
Payslips - for the last 3 months
If self-employed - accounts/tax returns for the last 3 years
ID documents - to include a valid passport and driving licence
Proof of address - e.g. utility bill or council tax bill
P60 tax form
Proof of any commissions or bonuses earnt

 

It is worthwhile getting this paperwork in order before you apply to help the remortgage process run as efficiently and as quickly as possible.

Can I remortgage early?

Yes you can but you may need to pay an early repayment charge and redemption fee, particularly if you want to remortgage early on a fixed rate.  It is important to weigh up if remortgaging early is worth it.

How can Home Legal Direct help with your remortgage conveyancing?

Complete our online remortgage quote and then speak to our team of conveyancing advisors are on hand to discuss this with you and assist you with the remortgage conveyancing process. They will assess your situation and connect you with the best conveyancer for you and your circumstances. This can save time and money and help ensure you are not paying for unnecessary conveyancing services. 
 

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