Kerry Henderson-Parish
With the cost of borrowing becoming more expensive with the Bank of England rate rises, remortgaging may be at the forefront of your mind.
It is important that you are aware of when your current mortgage rate is coming up for renewal and what your options are once that does come to an end.
Remortgaging is a process whereby you switch your borrowing from one lender to another, or you may even just switch between products with the same lender.
You can either apply to your lender direct or use a broker. A mortgage broker can assess the whole market for you to find the best deal and rate.
Whilst most of the discussion around remortgaging is – and for good reason – around interest rates and the increase in monthly payments, there is also legal work to be undertaken.
Legal aspects of remortgaging
The process of a remortgage is quite straightforward; however, you will need a solicitor to act on behalf of both yourselves and your chosen lender. We are able to do this for you to make the process as easy as possible.
Title documentation
We will obtain up to date title documentation in relation to your property to confirm that you are the legal owner. These title deeds will also include details of your current mortgage lender.
Mortgage offer
Your official mortgage offer from your lender will be sent to us as your solicitor, which we then pass on to you.
Searches
Unlike the initial purchase of your property, searches are not usually required for a remortgage; which is obviously helpful in terms of the length of time the whole process takes.
However, in most cases a search indemnity insurance policy will be required by the lender. We arrange this on your behalf and ensure that the policy is on risk as at completion.
Redemption statements
We will also be in contact with your existing lender to obtain redemption statements from them so that we are in a position to repay your existing mortgage on the same day – “Completion Day” – as taking out your new product i.e., so that it all happens seamlessly.
Post completion
Finally, after completion, we will register your new mortgage with the Land Registry, though it can take a significant amount of time before their records will show the updated information.
Let us help
If you require any assistance with remortgaging, please do not hesitate to contact us. We also have relationships with local mortgage brokers who can point you in the right direction for getting started.
We are able to offer advice in all areas of law, so please do get in touch if you require any assistance. We are happy to help.