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Guide to the Remortgage Process

Date Added 21.02.24

There are many misconceptions about remortgages, what they are, why you should do it, and what the remortgage process entails. Yet Remortgages can be a beneficial process for a multitude of people in different situations. This guide aims to inform you about everything there is to do with remortgaging and whether it is a task worth completing in your situation.

What is a Remortgage?

A remortgage is where your mortgage product/deal has come to an end and you are looking to obtain a new product at a new rate for a specified term. You will require a Solicitor/Conveyancer to act for you in this regard. If you are simply carrying out a product transfer (continuing with your same lender) you WILL NOT require a Solicitor/Conveyancer.

Why Should I Remortgage?

If any of the following conditions apply to you, a remortgage may be beneficial;

  • Your mortgage product is coming to an end
  • You want to ‘lock’ in a fixed rate and you are within 3 months of moving onto your lender’s standard variable rate
  • You want to borrow more money against your home
  • You want to take money out of the property (release equity)
  • You want to alter the term of your mortgage (reduce/increase the number of years remaining on your property)

Steps for the Remortgage Process.

To better understand a remortgage, it is useful to have an understanding of the remortgage process and what it entails. This can be broken down into 6 simple steps:

  1. Instructing a Solicitor/Conveyancer

Once you have obtained your new mortgage it would be prudent to instruct a Solicitor/Conveyancer to act on your behalf. This will involve filling out instruction forms (information about the property, current mortgage details and confirming you would like the Solicitor/Conveyancer to act on your behalf), providing your ID documentation, (your ID documentation can be submitted using a secure link online) and money on account (for searches) your file can then be opened to commence work.

  1. Current Mortgage Details

Your current mortgage details must be provided i.e. lenders name(s) and account number(s). This allows the Solicitor/Conveyancer to obtain a redemption statement(s) (amount owing figure) from your lender(s) to ensure your new mortgage is sufficient to repay the outstanding sums.

  1. Mortgage Offer

Once your new mortgage offer has been received, it will be reviewed to ascertain whether or not conveyancing searches (local authority search, drainage and water search, environmental search) is required. In the event these searches are not required, indemnity insurance will be obtained in lieu of the searches. Indemnity insurance will insure the lender for any adverse search results should they come to light and can be obtained at a small fee. Indemnity insurance will speed up the remortgage process for you. Indemnity Insurance is purely at the lender’s discretion and is not negotiable.

The title documentation is then investigated to ensure there are no untoward entries, to ensure the title is marketable and to ensure it meets your lender’s requirements.

When the above two points have been satisfied your mortgage offer is investigated. The mortgage offer must be received and addressed to the correct Solicitor’s Office. A copy from yourself is insufficient. The mortgage offer is then checked for;

  • Any Errors – i.e incorrect name spelling, incorrect property address, postcode etc
  • Special Conditions – i.e credit agreements that are needed to be repaid
  • Any comments on the Valuation Report – i.e. any works that have been carried out and would have required planning permission etc
  • Any adult occupiers – the occupier would be required to sign the mortgage deed as an occupier.

When the mortgage offer has been reviewed and the above points are satisfied, the remortgage report and mortgage deed will be forwarded to you for signature.

  1. Report to lender

If there are any discrepancies with your mortgage offer or any vital information missed this will be reported to your lender for their approval. Once the discrepancies have been dealt with, the request for mortgage monies will be requested via the Certificate of Title. Your lender will require a certain amount of notice to forward the mortgage monies to the Solicitor/Conveyancer. Each lender has their own notice period (some ranging from 3 working days to 7 working days)

  1. Completion

On the day of completion, your verbal authority is required to confirm you are happy to proceed. This is a quick telephone call to confirm you are happy to proceed. This takes place on the day of the remortgage and cannot be taken before the remortgage. When your authority has been taken, the new mortgage advance will be used to redeem your current mortgage(s). Any monies owing to you will then be forwarded to you (this is where you have taken out more monies than is required to redeem the current mortgage).

  1. Post Completion

After your current mortgage has been redeemed an application is submitted to the Land Registry to have the new mortgage registered against the property. This can vary from a couple of weeks to a couple of months. It is down to the Land Registry as it is them that deal with this. Once the updated title information is received showing the new mortgage a copy is provided to you for your retention.

Talk To Tollers

If you are considering remortgaging your propertyTalk to Tollers on 01604 258558, our experienced teams are on hand to assist.

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