Triangle Legal Services

Remortgage

Your guide to remortgaging your property.

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Remortgaging your property can be a great way to release equity for that all important event in our life or, if you are an investor, to extend you investment portfolio. Whatever the reason, the team at Triangle Legal Services are here to get your remortgage completed and your funds released.

What is a Remortgage?

A remortgage involves replacing your existing mortgage with a new one, either from your current lender or a different one. This process can help you take advantage of better interest rates, release equity in your property, or consolidate debts. Whether you’re looking to lower your monthly payments, shorten your mortgage term, or access funds for home improvements, remortgaging can be a strategic financial move.

Benefits of Remortgaging

  1. Lower Interest Rates: Interest rates fluctuate over time, and what was a competitive rate a few years ago might not be now. By remortgaging, you can secure a lower rate, potentially saving you thousands over the life of your mortgage.
  2. Access to Equity: Your property might have increased in value since you first took out your mortgage. Remortgaging allows you to release some of this equity, providing you with funds for renovations, investments, or other significant expenses.
  3. Debt Consolidation: If you have multiple high-interest debts, consolidating them into your mortgage can simplify your finances and reduce your overall interest payments.
  4. Flexible Terms: Adjust your mortgage terms to better suit your current financial situation. Whether you want to pay off your mortgage faster or reduce your monthly payments, remortgaging offers the flexibility you need.

The Remortgaging Process

Step 1: Consultation Schedule a consultation with a mortgage broker or your bank to discuss your current mortgage, financial situation, and objectives. They will assess your options and recommend the best course of action.

Step 2: Application Once you’ve decided to proceed, you will comple your remortgage application, gathering all necessary documents and information.

Step 3: Valuation and Offer Your new lender will conduct a property valuation. Upon approval, you’ll receive a remortgage offer outlining the terms and conditions.

The Legal Process usually starts here. If you are remortgaging with your current lender then you will not have to engage a solicitor or conveyancer. This is because you are considered to be transferring to a new product with the same lender.

If you are changing lender however you will have to engage a solicitor or conveyancer because the new lender will need their own due diligence on your property and to make sure your property is registered with HM Land Registry, registering their legal charge.

So what is the process for remortgage conveyancing? Well, it is not as complicated as buying or selling a house, but does have its intricacies.

Step 1: Identity Checks As with any legal process, your identity will have to checked and verified so that your new lender can have confidence that you are who you say you are.

Step 2: Title Checks Your solicitor will then carry out title checks the HM Land Registry to make sure you do in fact own the property and therefore have the right to remortgage. Your solicitor will check the title deeds at the Land Registry for this and for any charges registered against your property.

Step 3: Searches Your solicitor will apply for searches in the same way as when you purchased your property. In the case of a remortgage however, the lenders usually need only a local authority search. In some cases a lender may accept an indemnity against a search, that is an insurance policy indemnifying the lender against anything that may happen in the future as a result of something that would have shown up in a search. This route can be cheaper and quicker, but is completely dependant upon the lender.

Step 4: Pre-completion checks: Before completion, your solicitor will carry out a final check with HM Land Registry to prevent any new charges being registered against your property. This is known as an OS1 or Official priority search.

Step 5: Bankruptcy Checks: Your solicitor will conduct a bankruptcy search on all parties on the title deeds to makes sure they are not bankrupt or are being threatened with bankruptcy. Again this is to protect your new lender.

Step 6 Redemption Statement: Your solicitor will apply to your current lender asking for a redemption statement which details the exact figure including any accrued interest that needs to be repaid. Your existing lender will not allow their charge on your property to be released until their debt is fully repaid.

Step 7 Certificate of Title: Once your solicitor is satisfied that everything is in order, they will issue a certificate of title to the new lender. This confirms to the lender that, in the opinion of the solicitor, everything is in order and the lender can release the funds to the solicitor.

Step 8 Completion: Your solicitor will now get ready for the day of completion. They now have all of the information they need and will have a date for the release of funds from the new lender.

You will receive a completion statement from your solicitor detailing the financial aspects of the remortgage such as:

  • How much your new mortgage will be
  • How much is to be redeemed to your old lender
  • The legal fees
  • Disbursements such as for searches and checks
  • Finally, how much you can expect to receive, or if you are remortgaging to a lower amount, how much you will be expected to contribute to balance the figures.

On the day of completion your solicitor will receive the funds from the new lender, repay the old lender, and transfer the remaining balance to you after deducting their fees and any other deductions.

Step 9: Post Completion Registration: In this final step, your solicitor will register the new mortgage and the new lender’s charge on your property, with HM Land Registry. With current backlogs at HM Land Registry this can take some time.

For a free, no obligation discussion about your conveyancing requirements, simply either call us now on 020 3393 2774, email us on  enquiries@trianglelegalservices.co.uk  or complete a Free Online Enquiry and we will explain all of the options available to you.

Or if you are ready for a quote, complete our no obligation Quote Form.

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Hi I'm Ella
Hi I'm Ella

If you have any questions or need advice then please fill out the enquiry form below and either myself or one of the team will get back to you.

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