Due to the increasing cost of living, it is becoming more essential that homeowners remortgage their homes to the lowest interest rate and within the right timescales. Remortgaging can make real financial sense, but once you’ve found a mortgage deal that’s right for you, do you need to instruct a solicitor? In short, when remortgaging with your existing mortgage lender, you typically don’t need a solicitor, but it’s crucial to consult your lender and broker beforehand. However, if you’re switching lenders, engaging a solicitor becomes necessary.
Simply speaking, remortgaging involves replacing your current mortgage with a new one through the same mortgage lender you are present with. The aim is generally to get a better interest rate, lower monthly payments, or release more mortgage funds for home improvements or debt consolidation.
What is remortgaging?
Remortgaging involves switching from one mortgage deal to another on a property that you already own. This can be with the same lender or a different lender.
Why do people choose to remortgage?
Some of the most popular reasons for remortgaging include securing a better rate, saving money, and funding home improvements.
Benefits of Remortgaging
- Avoiding standard variable rates (SVR): Moving to a better rate can help you save money in the long run.
- Increasing borrowing and freeing up cash: Remortgaging can give you access to additional funds for various purposes.
- Reducing monthly repayments: By switching to a lender with lower interest rates, you can potentially reduce your monthly mortgage payments.
- Overpaying flexibility: Some lenders allow you to make overpayments, which can help you pay off your mortgage faster.
- Releasing equity: Remortgaging can allow you to access the equity in your property for other uses.
- Fixed payment options: Switching to a lender that offers fixed payments can provide more financial certainty that helps with budgeting.
When Do I Need a Solicitor to Remortgage?
Whether you need a conveyancing solicitor for your remortgaging process depends on your circumstances. If you plan to switch to a new lender or stay with your current one, the decision to involve a solicitor will be affected differently. Let’s look at the two scenarios to determine when a solicitor might be required for remortgaging.
1) Remortgaging with your current mortgage lender
If you choose to stay and remortgage with your existing lender, you may not need a solicitor. However, as always it is essential to check with your lender and mortgage advisor before proceeding.
2) Remortgaging with a new lender
If you have made the decision to switch mortgage lenders, you will usually need a solicitor to handle the legal aspects of the transaction. This is so they can achieve things such as transferring the mortgage deed and mortgage to the new lender. A positive is most mortgage lenders offer this as a free service to encourage you to move to them.
The Role of a Conveyancing Solicitor
A conveyancing solicitor can advise you on your options and how the process for remortgaging works. They can also handle the technical aspects of the transaction, ensuring a smooth transition between mortgage deals.
What a Solicitor Does During Remortgaging
- Requesting title deeds and mortgage redemption statement: The conveyancing solicitors will obtain these documents from your current lender.
- Checking new mortgage offer terms: They will review the terms of your new mortgage offer and highlight any important points.
- Conducting checks and searches: This step helps prevent unexpected issues that may hinder the progress of your remortgage.
- Managing funds on completion day: The solicitor will receive the funds from your new lender and will get a redemption statement from your current lender. They will then make sure your current mortgage is paid off in time.
- Updating Land Registry records: They will get you to sign the new mortgage deed and register your title deeds with the Land Registry to reflect the change of lender.
Timeframe for Remortgaging
To avoid any inconvenience, it’s crucial to begin the remortgage process at least three months prior to the expiration of your current deal as it may take up to eight weeks to complete. Getting the timing right is essential as you want to avoid early repayment charges and exit fees by remortgaging to early.
Preparing for Remortgaging
Gather all necessary paperwork and be prepared to respond to your lender’s enquiries promptly to avoid delays in remortgaging.
Legal fees: The Cost of a Solicitor
Some mortgage lenders provide free legal services or offer cashback options to cover legal fees. You may need to choose between using the lender’s solicitor or an independent one, depending on your specific situation.
The Remortgage Survey Process
A survey is often required during the remortgage process. However, some lenders may use automated desktop valuations, which involve estimating property values remotely, either through a ‘drive-by’ assessment or by using online data sources.
4 Helpful Tips for Choosing a Solicitor
Our mortgage advisors have put together a list of four helpful tips when it comes to choosing a solicitor for your remortgage.
- Research different solicitors to find one that specialises in conveyancing and has a strong reputation in the industry.
- Consider the solicitor’s communication style, as prompt and clear communication is crucial throughout the process of remortgaging .
- To ensure that you are getting the best value for your money, it’s important to compare the costs and services offered by different solicitors.
- Search for a conveyancing solicitor who is proactive and has the ability to anticipate possible issues, thereby assisting you in avoiding any potential delays or complications.
The need for a solicitor when remortgaging depends on whether you are staying with your current lender or switching to a new mortgage lender. When switching to a new lender, it’s important to have a conveyancing solicitor handle the legal aspects of the transaction. They can help ensure a smooth transition between mortgage deals. When selecting a solicitor, look for experience, reputation, communication style, and fees to ensure they can provide the best support during the remortgaging process.
Another question we often get asked by people looking to remortgage is Do I need a Remortgage Valuation on my house?
Get in Touch with Our Expert Mortgage Brokers
If you need to remortgage your home, our team of knowledgeable mortgage brokers is available to assist you every step of the way. We will research the whole market to get you the very lowest interest rate and then submit your mortgage application.
Over the last 20 years, we are very experienced in making a remortgage a smooth and stress-free process. We will carry out the vast majority of the work on your behalf and even better. We are a no-fee mortgage broker which means we get paid by all mortgage lenders and won’t charge you a penny for our services.
To discuss your remortgaging needs with our professional mortgage brokers, call us on 033 0088 4407 or by filling out our online form. Alternatively, send us a WhatsApp with you any questions you may have.