Remortgaging is the replacement of an existing mortgage with a new one. The existing mortgage is repaid when you complete the transfer to the new remortgage deal.
Many people chose to remortgage their home once they are on the property ladder because it can be a way of lowering your monthly mortgage payment by taking advantage of improved interest rates or reduced mortgage fees. Remortgages can provide a good reason for seeking out a new lender.
What can our remortgage conveyancing solicitors do for you?
The remortgage process differs from case to case based on a variety of factors such as the mortgage offer, how existing mortgage repayments are made, as well as the booking fee and any admin charge or early repayment charges. A remortgage conveyancing solicitor can advise on what the best option is for you.
At Eric Robinson Solicitors, our lawyers are expert advisors in conveyancing and the remortgaging process. They will work closely with your current mortgage lender, and your new one, to make sure that the legal work runs smoothly.
Our costs and advice will be charged on a fixed fee basis and we are authorised and regulated by the Solicitors Regulation Authority, guaranteeing a professional service that you can rely on.
We aim to help you in understanding the process, which is very important when you are weighing up details of various remortgage deals. Our years of experience mean we can offer the highest quality of customer service and our expertise means that we are able to advise and support our clients through any situation they find themselves in. Your advisor will always be by your side acting on your behalf until the new mortgage is completed ensuring that everything is in order.
Our remortgage solicitors will use the latest paperless technology to provide a bespoke quote for the cost of the remortgage conveyancing fee, to immediately advance your matter from the receipt of your instructions, and to keep you fully informed throughout the entire duration of the services.
Our instant quoting tool is available throughout our website and any quote can be tailored to your specific property needs using the options contained across the apps menu. The quote will contain notice of all fees payable.
Your quote will be issued to your nominated email address for your review. When you are ready to accept your quote, confirmation that you wish to proceed can be issued via a link provided in the email. Alternatively, you can call your nominated solicitor at any of our offices and advise that you are ready to begin.
What fees can I expect to pay in my new mortgage deal?
You may be remortgaging to save money, to reduce your mortgage term or to release equity from your house by increasing your remortgage amount. Some or all of these objectives might be possible by switching to another mortgage product with your existing lender or by switching to another provider. Remember, if you switch lenders, the savings you make on the interest rate may be wholly or partially in part eaten up by the transaction charge incurred for setting up the new loan.
There are other considerations to take account of too. Existing mortgage lenders sometimes demand redemption fees, and may charge you a penalty. You may also need to pay an arrangement fee. The new lender will want to value the property, just as your old lender once did, so you may be required to pay for a surveyor too. Other charges you might encounter in the remortgage transaction include arrangement fees, valuation fees, and an early repayment charge. There will also be the cost of search fees and a Land Registry fee to register your new lender’s charge.
What does re-mortgaging mean?
Re-mortgaging means moving your mortgage to a new lender while staying in the same property.
Is re-mortgaging a good idea?
Re-mortgaging can be an effective way to save money on your monthly mortgage payments. Most people re-mortgage to secure a lower monthly rate of repayment, which usually derives from securing a more competitive interest rate.
Are there other reasons why people re-mortgage?
Aside from seeking to reduce the rate of monthly repayments home owners may choose to re-mortgage in order to raise capital by withdrawing equity from the property, or re-mortgaging may be used as a means of consolidating other more expensive short term debts.
Can there be hidden costs when re-mortgaging?
Although your chosen lender will take you through the details relating to your new mortgage it can sometimes be difficult to make a clear comparison with the terms of your existing mortgage terms. In some instances, the monthly saving that you stand to make can be outweighed by the fees that you will be required to pay to your new lender to secure the product. It therefore important that you consider all of the costs.
What is an arrangement fee?
An arrangement fee is the charge that your new lender will make to secure their product. You may also be charged a further fee by any mortgage broker that you use on account of the cost of their service.
What is an early repayment charge?
When you take out a mortgage you are usually required to retain it for a minimum period (i.e. 2,3 or 5 years). This minimum fixed term period usually runs for the same period as the headline interest rate. If you want to re-mortgage and move to a new lender before the expiry of your minimum fixed term period, your existing lender may charge you a penalty fee. The penalty fee may be a fixed amount, or a percentage of the overall outstanding balance of your loan. Once your minimum fixed term period has ended you will be free to move to a new lender without incurring an early repayment charge.
Do I need to get my house valued when I re-mortgage?
This will depend entirely upon the requirements of your new lender however it is normally safe to assume that a valuation will be required.
How many times can I re-mortgage?
There is no limit on the number of times that you can re-mortgage however you will need to bear in mind that every time you move to a new product you may be required to arrangement fees, and if you re-mortgage during the minimum fixed term period on your existing product you may incur an early repayment charge.
Can I re-mortgage with my existing lender?
Yes. When you re-mortgage with your existing lender the process is normally a little more straightforward as you will only be required to agree to the terms of the new product. This should mean that there is no need for you to have a valuation carried out but this is not always the case. Each lender is different and will impose their own requirements.
When do I need to instruct a lawyer?
Normally it is only necessary to instruct a lawyer to act on your behalf when you choose to re-mortgage with a new lender.
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