Do you need a solicitor to remortgage?
Many homeowners reach a certain point in their existing mortgage where they consider remortgaging the property. There are several reasons why a person may do this, and it may be as simple as getting a cheaper interest rate to lower monthly payments.
But, when remortgaging, do you need a solicitor or is it a simple process? Do you stay with your existing lender?
If you’re considering moving to a new lender, continue reading as the experts at GD Property Solicitors explain everything.
Why do people remortgage?
As mentioned above, there are a variety of reasons why a person may remortgage their property, including:
An equity release
Switching to a fixed-rate interest for a specific period
Switching to a tracker mortgage, where the interest rate tracks the Bank of England base rate for a set period
Borrowing more money to cover debts or pay for construction work on the property
Changing the length of the current mortgage
Will I need a solicitor for the remortgage process?
You do not always require a solicitor to rework your existing mortgage. If you’re just borrowing more money with your current mortgage lender, there are no legal charges as this is considered a ‘product transfer’. You’ll simply have to pay charges associated with increasing your loan and repayments.
However, if you’re seeking a better deal away from your current lender, you will require the services of a solicitor, which could lead to paying solicitors’ fees.
If you’re remortgaging with a different lender, you’ll need a solicitor to manage the transfer because title deeds must be migrated from one lender to another.
What is included in the remortgage conveyancing process?
While the conveyancing process for a remortgage isn’t as extensive or complex as when you purchase your home, there is still plenty of legal work to be completed.
The remortgage conveyancing process involves:
Completion – On the day your solicitor receives the mortgage funds from the new lender, they’ll pay off your old mortgage and any fees before sending any remaining funds to you.
ID verification – Proof of ID checks to protect against money laundering.
Current mortgage – Details of your current mortgage will be requested by your solicitor, who will also ask for a redemption statement which provides information on how much is left to pay on the mortgage.
Leasehold property – Your solicitor will check the lease terms and the remaining time left on the lease to comply with the new lender’s requirements.
Property searches and valuation – Property searches may be requested before the new lender is prepared to move forward with the process. They will also value your property and issue a formal mortgage offer.
Final checks – Once you’re happy with the fine print and you’ve signed the mortgage deed, your solicitor will conduct a bankruptcy search to ensure you’ve never declared bankruptcy.
Land Registry – A priority search is completed to ensure nothing has changed on the property deeds since the remortgage conveyancing process began. Once the remortgage deal has been completed, your solicitor will register any changes on the Land Registry.
How long does the remortgage conveyancing process take?
The remortgage process can take as little as one or two months, but it is generally faster when staying with the same lender.
If you’re considering a remortgage deal before your current fixed-term interest rate ends, give yourself at least two months for all the legal aspects to be covered.
How much are the legal fees for the remortgage process?
Legal fees for a remortgage aren’t too bad, all things considered.
However, you might be lucky in that some lenders tend to offer a free legal package with their remortgage deal. This means you can use the mortgage lender’s conveyancing solicitor to remortgage without paying too much – but be sure to check!
In general, there are a few things you must pay for when remortgaging your property. They include:
- Conveyancing fee – £300
- Land Registry fee – £20 to £65
- Bankruptcy search – £2
- Priority search – £3
- Official copy of the title deeds – £3 to £12
You may also have some exit fees or early repayment charges to cover, too, but this will be outlined in the redemption statement sent to your conveyancing solicitor.
Can you add legal fees to your new mortgage?
In some cases, you don’t have to pay any of the legal fees associated with a remortgage because the lender may cover it.
However, if there is a charge to pay, this must be done upfront and cannot be added to the new mortgage.
Choose a reliable conveyancing solicitor for your remortgage
Your chosen mortgage lender may recommend a conveyancing solicitor to handle your remortgage. If they’re free then you likely won’t have much of a choice.
However, if you’re paying for their services, you can shop around and find a better deal for you.
And that’s where we come in. At GD Property Solicitors, we pride ourselves on offering top-quality service for an affordable rate.
Our team of highly qualified conveyancing solicitors can handle your remortgage conveyancing process for an excellent value-for-money price, anywhere in the UK and however large your home is.
So, if you’re keen to get the ball rolling on a better deal for your mortgage, contact us today by calling 0161 710 1786.
A member of the GD Property Solicitors team will be happy to discuss your situation and start the remortgage process.