A guide to remortgaging your property

This guide is for anyone who already has a mortgage on their home and are considering finding another mortgage deal. Perhaps you are coming towards the end of your current deal, you want to cut costs, release funds or consolidate your debts. Our guide will help you to understand the steps to take to ensure your remortgage is as smooth as possible.

What is a remortgage?

A remortgage changes your current mortgage deal to a new deal. You may change mortgage lender completely or you may just change the current rates and conditions with your existing lender.

Do I need a solicitor to remortgage?

If you decide to change your lender, this will affect the title of your home and you will need a solicitor to help you with this.

Should I remortgage?

The decision to remortgage will be affected by many different factors and with many mortgage providers out there, it can be confusing. A remortgage can be useful for many reasons and you may consider this for the following reasons:

• Your current deal with your mortgage provider is coming to an end soon
• You want to borrow more money for home improvements or other reasons
• You want a better interest rate
• The value of your home has risen considerably and you may fall within a different loan band
• You find the policies of your current provider too restrictive

While remortgaging can often cut your costs, it’s not right for everyone. You may find that remortgaging isn’t a possible option for you right now, depending on your situation, timing, money and personal circumstances. You may find that your current provider will levy a hefty early repayment charge on you should you switch providers or after some investigations, you may find that your current rate is very competitive already.

Can you remortgage early?

It is certainly possible to remortgage at any time, however, you may find that there is no point if you won’t benefit afterwards. It is important to understand your position with your current provider, including any early repayment charges or other fees. Reviewing your mortgage contract or talking to your mortgage broker should provide you with some answers.

It is usually a good time to start looking round to remortgage between three and six months before your current rate is due to end.

How to remortgage

To help ensure your remortgage goes as smoothly as possible, our conveyancing solicitors have provided the following steps to guide you through the process.

1. Visit a financial/mortgage advisor

Many financial advisors are free to use as they form part of employee benefits or they get paid by the lender only once you accept the offer and complete on your new mortgage, so there is no need to pay upfront for most services, but check with the advisor first. Your financial advisor will be able to guide you through the best options on the market at present

2. Choose a reputable solicitor

Many financial advisors refer their clients to ‘free conveyancing solicitors.’ However, be aware that although these solicitors can be free if you have an extremely straightforward case, there are often hidden costs and work isn’t completed to a deadline. Choosing a trusted solicitor, such as Brachers means you get one-to-one advice from a qualified remortgage specialist who is at the end of the phone.

3. Instruct solicitors and provide them with your identification and instruction forms as early as possible

Until these are received, you solicitors will be unable to work on your file, so providing early information with help expedite your matter.

4. Read your offer carefully

Once your mortgage has arrived from your lender, contact your solicitor to ensure they have also received a copy. Read the terms of your new mortgage offer carefully and if you have any queries refer these back to your financial advisor. Your solicitor will also advise on details that you need to be aware of.

5. Respond to your solicitors enquiries

Your solicitors may raise queries in regards to the title of your property, although a remortgage seems straightforward, each lender has differing requirements in respect of properties. This can be especially troublesome with leasehold properties or properties with a management company. In these circumstances, there may be requirements of the freeholder or management company in respect of serving notice and administration fees.

6. Completing the deed

Upon receiving the mortgage deed from your solicitors, you must ensure that you are aware of, and in acceptance with, the conditions or your new mortgage before signing and returning this deed. Often, a witness will need to sign alongside you. If you are not sure how to sign your deed, check with your solicitor first. Return the mortgage deed only when you are ready to proceed. The solicitors will usually ask if you have any preferences as to completion dates. You may wish to check the completion date with your new lender, so that the new mortgage can be set up to be paid on a monthly basis when you are ready.

7. Complete your remortgage

Your solicitors will usually need at least a weeks’ notice to complete your remortgage after receiving your returned deed. Once completion has taken place you will be bound by the terms of your new mortgage and your title deeds for your property will be updated by your solicitor.

Further guidance on remortgaging

If you have decided to remortgage your property and require a solicitor to act on your behalf, our trusted remortgage team will ensure you are kept fully informed and supported throughout the process.

Get a free, no obligation, online remortgage quote today in just a few clicks or get in touch with our Property and Conveyancing team and we can provide you with a quote and answer any queries you may have.

This content is correct at time of publication