In a nutshell, remortgaging is the process of paying off one property mortgage with another, using the same property as security. This property legal service is widely used by property developers increasing their portfolio, as well as private home owners moving to a property with a higher value. There are five steps to the remortgaging process, so let’s take a closer at this process and answer the question: how exactly does remortgaging work?
Step 1: Ask Yourself Why
The first step in the remortgaging process is to ascertain exactly why you’re wanting to remortgage in the first place. For example, some people will apply for remortgaging to reduce their monthly mortgage payments. Others might want to switch from a variable interest rate to a fixed one, and some might just need access to property equity through market value improvement. So, before chatting to a remortgaging specialist, pin-point your reasons.
Step 2: Speak to Your Mortgage Advisor
The next phase of how remortgaging works involves speaking to an independent mortgage advisor. You’ll want to make sure they aren’t associated with any specific lender, otherwise their advice might lean towards one provider over another – who might be able to offer a better deal. Your mortgage advisor will ascertain whether remortgaging will actually save you money, and should be able to compare a wide range of deals – offering you the best agreement possible.
Step 3: Approach Your Current Lender
The third step in the remortgaging process is arguably the most important. Before snatching up your new mortgage deal as soon as you see the reduced monthly fees, consider taking this new mortgage deal to your existing lender. It’s only fair to give them the opportunity to match – or beat – the new mortgage deal. If they can’t, you have your answer. If they offer you an even better deal than the third-party lender, weigh up the pros and cons. Either way, you’re in for a saving!
Step 4: Proceed with Your Application
Phase four of the remortgaging process sees you deciding on your preferred lender, after which you’ll need to submit an application. You might need to submit to a credit check should you choose a third-party lender, which will require you sending extra documentation. Also, most lenders will request a property survey to establish value. Timeframes will vary depending on the specific lender, so be sure to ask about this during the application process.
Step 5: Instruct a Solicitor
Finally, the initial remortgaging process is completed when you instruct a solicitor. Many mortgage lenders have their own preferred legal professionals they utilise, but some might leave this up to you. A solicitor is required to handle the legal end of the remortgaging process, seeing to the paperwork and arrange the transfer of funds upon completion. If you’re instructing your own solicitor, be sure to ask if they’ll be responsible for chasing up on the legal aspects. This will take a great deal of pressure off of you, and make the entire remortgaging process much more pleasurable.
Remortgaging in the United Kingdom
Home Legal Direct is able to facilitate fast, professional remortgaging in the United Kingdom. Give us a ring today and let’s see if we can negotiate a better mortgage deal, saving you money in the process! We look forward to hearing from you…