SERVICES
Mortgages and Remortgages
Where you are taking out a mortgage on a property that has not previously been mortgaged, or you are changing from one mortgage provider to another, then although you are not purchasing a new property, we will still need to carry out some of the processes that would have been required on a purchase.
This is so that the provider of the new mortgage can be sure that you have a good title to the property that secures their loan.
Note, however, that if you are obtaining a mortgage as part of a purchase then we will deal with that along with the rest of the transaction.
What is involved in a mortgage or remortgage?
If we are acting for you in connection with a mortgage or remortgage, then we will need in most cases to:
- Review your mortgage offer;
- Carry out searches on the property;
- Check the deeds and documents to make sure that you have legal title to the property;
- Complete the mortgage provider’s certificate of title;
- Receive funds from the mortgage provider; and
- Arrange to transfer the funds to you or, if it is a remortgage, transfer some or all of the funds to the previous mortgage provider.
On a remortgage, we will also need to find out how much you owe on your existing mortgage.
Why might you be mortgaging or remortgaging your property?
There are several reasons why you might need to mortgage or remortgage your property. If you do not currently have a mortgage, then you might need to take one out in order to carry out improvements or repairs to your property. Alternatively, you might want the mortgage for a purpose unconnected with the property – for example purchasing a holiday home or paying off existing debts.
If you already have a property then you may want to switch to a different mortgage provider for example to get a better interest rate from a different lender, to extend the term of your mortgage with a different lender or to release some of the equity in your property – for example by borrowing more than you borrowed previously to use for another purpose – e.g. paying for a child’s wedding.
If you are simply switching from one type of mortgage to another but remaining with the same lender then this is not a remortgage and, in most cases, can be dealt with by the lender themselves without a solicitor being involved.
The Mortgage and Remortgage Process
Mortgaging or remortgaging a property is more straightforward than undertaking a sale or purchase – if only because there is no one else involved other than the mortgage provider. We will, however, still be required to investigate the title to your property so that the new lender can be sure that they have adequate security on your home.
- We will start by taking your instructions including obtaining details of your present mortgage and who has the documents to your property if they are not with you or your current lender. We will also require evidence of your identity so that we can comply with the strict money-laundering duties that apply.
- If you are remortgaging, you will need to tell your existing mortgagee that we are acting in the remortgage so that the documents can be released to us and you will need to provide us with a copy of your house insurance documents. In both cases you will need to let the new mortgagee know that we are acting.
- For a remortgage, we will find out how much is currently outstanding on your existing mortgage and get details of your new mortgage from the new lender for whom we will usually act.
- We will undertake various searches and have a look at the deeds to your property to make sure that there are no issues with your property that could affect the interests of the new mortgagee. We may need to ask that you pay for these searches in advance.
- Once we have received your mortgage offer from the new lender, we will check to make sure that it is satisfactory given your intentions.
- Once we have checked the title and checked the mortgage, we will ask you to sign the mortgage deed.
- After the paperwork has been signed, the mortgage or remortgage can be completed. If it is a remortgage, we will pay off your previous mortgage from the funds received from your new mortgage and forward any balance to you (or request that you pay a balance to us if you are reducing the amount of your mortgage). If there is a sum due from you this must be paid, together with any Land Registry fee, before completion of the remortgage takes place. If it is a mortgage, we will simply send the balance of funds to you.
What will it cost?
There are two aspects to the costs of the mortgage or remortgage - the fees that we charge for doing the work and the payments we need to make to others (called disbursements) on your behalf. Both will depend upon several factors including the value of the property, the nature of the transaction and where the property is situated.
We want you to be as clear as possible about the charges we will make and the additional payments that will be required. To find out more, please go to our “Pricing” page where you will see those charges set out and where you can obtain from us a quotation as to the actual cost for the property you are mortgaging or remortgaging. If you have any doubts as to those charges, please do not hesitate to contact us.
How long will it take?
How long your mortgage or remortgage takes will depend on several factors including the property itself and how quickly the mortgage provider is able to process the matter. Rest assured that we will always try and make sure that your transaction takes no longer than is absolutely necessary. On average a remortgage takes roughly 3 to 6 weeks.
To ensure your transaction proceeds as quickly as possible we will always chase up the progress of your transaction and will not simply wait for something to happen. However, just because the transaction is not moving forwards does not mean that it is us that is holding it up.
Who will be carrying out the work?
Our residential conveyancing team has many years of collective experience in delivering high quality work in all matters relating to mortgages and remortgages. Regardless of who works on your matter, they will be supervised by Vishal Sharma who is a partner in the Firm.
You will find full details of the team on the “Meet the Team” page using the menu at the top of the screen.