Why Remortgage My Home?
If you are planning to remortgage, you might be wondering whether or not you will need to use a solicitor. Maybe you are looking to get a better deal, consolidate debts or release some equity. Whatever the case, we will help you decide if you’ll need to use a conveyancing solicitor, which one to choose and how much it is likely to cost you.
Many introductory mortgage offers only last a short time (two to five years). This is the typical length of time offered on a fixed rate, tracker or discount mortgage.
It is essential to remortgage when this fixed or introductory rate ends. You will now be put on the lender’s Standard Variable Rate (SVR) probably not the cheapest option. Remortgaging is going to be something you will have to think about. You can enquire with your current lender about a new offer They will be keen to retain your custom so always begin here.
If you are transferring products with the same lender you don’t necessarily need a conveyancing solicitor for the remortgage.
Other reasons to remortgage may be to reduce the size of repayments, to pay off a mortgage earlier, to release capital, or to consolidate other more expensive short term debts. A change of Personal Circumstances could mean your current mortgage may no longer be the most appropriate for you at this time. A different mortgage with different terms or features might suit you better.
You may require a fixed-rate remortgage or you may be earning more than when you took your mortgage out and want the ability to overpay. There are mortgages around that offer flexibility but these come at a price. Flexible features usually come with a slightly higher interest rate so shop around. Don’t be tempted by fancy products unless you will actually benefit from them.
Raising extra money can be a reason to remortgage by increasing the percentage of your home’s value that you borrow against. Affordability will be reassessed by your lender to make sure you’re not over-stretching your finances.
Large rise in house value: the value of your home may have risen a lot since you took out your mortgage and you could do with releasing some of that extra cash. You may find you’re in a lower loan-to-value band, and eligible for much lower rates. It’s definitely worth looking into.
Do I Need A Conveyancing Solicitor To Remortgage?
- There are no legal charges in getting an advance transaction. Charges are incurred by increasing the amount you borrow and repayments.
- If you remortgage with your current lender you are just changing product. You are in effect just moving to a different deal. This requires no additional legal work. A conveyancing solicitor is not needed for this.
In other cases of remortgage, you will require the services of a solicitor or conveyancer. Many lenders even include a free legal package in their remortgage quote. This means a chosen solicitor will cover the legal requirements.
Double check that this is free. If it’s not, ask if you’re able to shop around for your own conveyancing solicitor.
There are a couple of situations where you will definitely need to appoint your own solicitor.
- Adding someone to the mortgage: This is because ownership of the property is being altered. This is known as a ‘transfer of equity’. Deeds will be amended and paperwork drawn up. This all requires legal know how.
- Removing someone from the mortgage: see above. This means that the ownership of the property is changing so a solicitor will be needed to amend the deeds.
Should I Use The Lender’s Conveyancer?
Your mortgage lender may be keen for you to use their chosen solicitor. Sometimes the services is free and part of the deal. In this case, you don’t have much choice but to use them.
If you are paying for the solicitor then you are within your rights to shop around for a better deal.
Not all lenders are affiliated with conveyancing solicitors. In which case get a fast and free quote for remortgage conveyancing solicitors.
How Long Does Conveyancing Take When I Remortgage?
The process of remortgaging takes one to two months in general. It is usually quicker if you are remortgaging with the same lender/ transferring products and the legal process is much less complicated. If you are thinking of remortgaging and want to do so before your current deal expires, give yourself at least two months.
Conveyancing Fees For Remortgage
These are the costs you pay a solicitor or conveyancer for the legal work involved in transferring your mortgage from one lender to another. They will also arrange for you to pay off the current debt to your lender.
There is typically less work involved in a remortgage than an initial purchase so it usually costs less.
Remortgage Valuation Fees
If you are remortgaging with a new lender, they will need a valuation of your property. before. This is so that they ascertain how much the property is worth.
They usually appoint their own surveyor, but you will have to pay the cost unless it is offered for free as part of your remortgage deal.
Valuation fees vary depending on the size/value of your property but will usually cost between £250 up to £1,500.
Remortgaging can be a great way to save on your monthly mortgage costs.