The government is making it easier for homeowners to extend their properties outwards and upwards. The new law to extend homes and revitalise town centres means that more and more people have decided to raise funds with a remortgage to fund improvements rather than move house.
Are you thinking of remortgaging your current mortgage? Let us represent you with our remortgage conveyancing service and and do all the legal work for you.
Although a remortgage transaction is simpler than a residential conveyancing transaction - with no estate agents, sellers, buyers, or their solicitors involved – it makes sense to let the specialists take care of the process to ensure a smooth and efficient transfer of the mortgage funds.
On average, a remortgage takes between two and four weeks to complete - our dedicated team of remortgage conveyancers at RG Law can carry out all the legal work quickly and efficiently to ensure the process is completed as soon as possible all the while minimising legal fees where possible.
The Remortgage Conveyancing Process at a Glance
The remortgage conveyancing process involves the legal transfer of a property's ownership from one mortgage lender to another. Here's what typically happens during the remortgage conveyancing process:
Choose a new lender: The first step is to find a new mortgage lender and obtain a mortgage offer.
Instruct a conveyancer: Once you have a mortgage offer, you'll need to instruct a remortgage conveyancing solicitor to handle the legal work for you. You can either use the same remortgage conveyancing solicitor you used when you bought the property or find a new one.
Title investigation: Your conveyancer will investigate the legal title of the property to ensure that there are no issues that could affect the remortgage.
Valuation: Your new lender will usually carry out a valuation of the property to ensure that it is worth the amount you are borrowing.
Mortgage offer: Once the valuation has been carried out, your new lender will issue a formal mortgage offer.
Signing the new mortgage deed: Your conveyancer will prepare the new mortgage deed for you to sign, which will confirm your agreement to the terms and conditions of the new mortgage.
Completion: On the completion date, your conveyancer will receive the funds from your new lender and use them to pay off your old mortgage. Any remaining funds will be transferred to you.
Registration: Your conveyancer will register the new mortgage with the Land Registry and update the ownership details.
Overall, the remortgage conveyancing process can take several weeks to complete, and it's important to work with experience remortgage solicitors who can guide you through the process and ensure that everything runs smoothly.
What we will need from you to get the remortgage conveyancing process started
Your name and contact details
The amount you are borrowing from your current mortgage lender
Amount you wish to borrow from the new mortgage lender
Number of owners
Here are some FAQs that may help understand the remortgaging process
What paperwork will I need to remortgage?
When applying for a remortgage you're going to need all the same documents that were required when you first applied for the original mortgage with your existing lender.
How long does a remortgage application take?
It's best to start talking to us at least 3 months before your deal is due to end. Getting a remortgage usually takes between four and eight weeks, but it can take longer if there are any complications like not having all your paperwork and proof of income etc ready. The process is likely to take longer if you switch lenders, instead of getting a new deal with your current mortgage company, however that's not a hard and fast rule and you should let us help you look for the best deal rather than staying tied to one lender.
Is remortgaging easy?
Remortgaging can be an effective way to save money on your monthly mortgage repayments, but it can be hard to work out whether or not it is actually worth it in the long run. That's where we come in, as we do all the leg work for you and take the hard work out of applying for mortgages.
How much does it cost to remortgage?
Your new lender will expect you to pay the cost of the valuation unless it is offered for free as part of your remortgage deal. Valuation fees vary depending on the size and value of the property but will typically cost from around £250 up to £1,500. After that, there may be legal fees if you are switching providers too. We will help you to work out all the remortgage conveyancing fees associated with the switch and talk to you about your options for paying those fees upfront or adding them to the mortgage. There's an increase in providers offering ‘free legals' and ‘free valuations' on their products, however, as qualified remortgage conveyancing solicitors we are well equipped to help you consider all possibilities.
Can I remortgage after 2 years?
Your best time to remortgage is as a fixed-term deal is coming to an end. You should preferably be talking to us three or four months before that deal is due to end, so we have plenty of time to find you the best deal. Remortgaging too early can trigger early repayment penalty fees, so do make sure you talk to us before you take any actions.
Do you need a solicitor to help with a remortgage process?
If you remortgage with your current lender, by simply moving to a new rate or deal, it's considered a “product transfer” and requires no additional legal work. Otherwise, yes, a remortgage process will require you to have a solicitor or conveyancer, to help with the legal side of things.
Will bad credit affect my mortgage renewal?
That depends on whether you are moving mortgage lenders to a new lender or sticking with a new deal from your existing provider, and also on the circumstances of how much your credit has worsened since you took out the existing mortgage. Because there is a lot of factors to take into consideration it's best to talk to us before starting any applications.
What exactly is remortgaging?
Remortgaging is the term given to the process of switching onto a new mortgage deal – either with the same or a new lender. The most common time to remortgage is when the fixed, introductory, tracker or discounted rate on your initial mortgage ends.
What paperwork will I need to remortgage?
When applying for a remortgage you're going to need all the same documents that were required when you first applied for the original mortgage including any mortgage and property deeds.
Your lender may want to see any or all of:
Your last three months' bank statements
Your last three months' payslips
If self-employed: your last one to three years' accounts/tax returns
Proof of bonuses/commission
ID documents (usually a passport)
Proof of address (e.g. utility bills or credit card bills)
Copy of your credit report
Your latest P60 tax form (showing income and tax paid from each tax year)
Should I get my house valued before remortgaging?
Whatever your reason, if you decide to remortgage, you'll need to know the value of your home. Remortgaging is different because, in this case, your equity is used in place of a cash deposit. Equity is what's left when you subtract the outstanding amount on your mortgage from your current property value, so you will need to know your home's new value before applying for a remortgage. This doesn't necessarily mean you have to have it valued before speaking to us if you know how much it's worth, as you may have to pay for a valuation during the remortgage anyway (if the lender does not offer a free one).
Do you need proof of income to remortgage an existing mortgage?
Most lenders' requirements for proof of income for mortgage applications will differ. Typically, earned payslips evidence income if you are employed. The standard conditions are three months' payslips and two years' P60s, although there are lenders who will accept less than this, and by working with us, we can find you the best lender for your circumstances. If you are self-employed, tax returns and accounts will be used, or possibly a certificate from your accountant. Your mortgage adviser will be the best person to speak to about what proof you will need for the lender they advise you to go with.
Do you need bank statements for a remortgage?
Typically, a bank would ask for up to three months of your most recent bank statements. We'll help you be prepared with your documentation for an application, as some lenders may ask for fewer bank statements than others, or some may not even ask for them.
Can I remortgage with the same lender?
One of the main reasons to remortgage is that you can replace your current mortgage with one with better terms and conditions. This can result in a lower interest rate, lower fees and lower monthly repayments. You can choose to remortgage with your current lender, but we would look at a range of lenders to help you get the best possible deal.
What if my house valuation is less than my remortgage offer?
If the mortgage valuation is lower than you expected, this may affect your remortgage offer, given that it could change the Loan to Value percentage. Your adviser will talk you through the following steps at this stage.
Can I remortgage after retirement?
Some lenders are happy to give mortgages that borrowers will still be repaying after they have retired. If you've retired and no longer have an earned income, except for your pensions, we can help you see if there is still a good remortgage deal for you.
We hope you have found these faq's helpful. Remember always seek professional financial advice when taking out a new mortgage.