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How do I Remortgage a Property? 
April 29, 2024

Here, our experienced Residential Property team help you understand the remortgaging process. 

What is remortgaging? 

Remortgaging involves moving a home loan to a new deal with another lender or committing to a different one with an existing lender. 

Most people remortgage when they reach the end of their mortgage term (usually between two and five years) to secure a better rate.  

However, you can remortgage at any time, although you might incur an early repayment charge if you do so before the end of your fixed term. 

Homeowners can also choose to remortgage to borrow more money or reduce the length of a mortgage term. 

Do I need a solicitor to remortgage a property? 

The remortgage conveyancing process can be complex.  

Remortgaging generally follows the same steps as a property purchase. You must provide certain information and documentation and meet specific legal requirements. 

A lawyer can help with the key stages involved in remortgaging, including: 

  • Reviewing the property title or lease. 
  • Undertaking the necessary due diligence. 
  • Completing identity and Anti-Money Laundering (AML) checks. 
  • Gathering title deeds, mortgage redemption figures and other relevant information.  
  • Undertaking any searches. 
  • Answering and fielding enquiries.  
  • Raising any queries with the landlord for a leasehold property remortgage. 
  • Obtaining and checking the mortgage redemption statement. 
  • Agreeing on a target completion date. 
  • Transferring the necessary funds. 
  • Redeeming the existing mortgage and registering the new one at the Land Registry 
  • Notifying all relevant parties. 

Specialist legal advice is vital to ensure the remortgage process runs smoothly. 

If you are looking for advice and guidance on remortgages and want to discuss your next steps, please email Muscatt Black Graf on contact@muscattblackgraf.com. 

What documents do I need to remortgage? 

The paperwork required for the remortgage process is similar to that lenders require when you apply for a mortgage.  

Some of the information about your personal and financial circumstances you will need to provide for a remortgage application includes: 

  • Proof of address. 
  • Copies of bank statements. 
  • Details of your current mortgage. 
  • Proof of salary. 
  • Records of regular outgoings. 
  • Identification. 
  • Proof of funds. 

How long does it take to remortgage? 

Switching to a new mortgage deal with the same lender usually takes around six weeks, although it can take longer if you are changing lenders. 

What should I consider when thinking of remortgaging? 

The following points can help ensure the remortgaging process runs smoothly: 

1. Start the process in good time. 

If you are on a fixed-term mortgage arrangement, you should consider remortgage options around three to six months before your existing deal ends. Otherwise, your current lender could move you to the standard variable rate, which is generally higher and more expensive. 

2. Do a financial audit. 

Being aware of your existing and future financial obligations in the run-up to remortgaging enables you to know exactly what you can afford. This can include your income, an assessment of your circumstances, and your current and expected outgoings.  

3. Do your research. 

Most homeowners are contacted by their existing mortgage lender around six to nine months before a fixed deal ends to be offered a new rate (a ‘product transfer’).  

It might be tempting to accept this as you are familiar with the lender, and it is convenient.  

However, you should never settle for the first offer. Considering whether you want a variable or a fixed-rate mortgage that is repayment or interest only and researching the best available rates from various lenders will ensure you secure the best remortgage deal for you. 

4. Read the small print. 

Before committing to a deal, make sure that you factor in additional fees and charges, such as early repayment charges, exit fees, legal fees, and valuation fees, and establish how much you would need to pay each month. 

Residential Property Lawyers Marylebone 

Our experienced Residential Property team can help with all aspects of buying, selling, developing, and financing residential property for individuals and families, developers, and private banks. 

We have particular expertise in dealing with prime London property. We advise high-net-worth individuals, corporate entities and domestic and overseas investors with their residential property needs in London and beyond. 

Our residential property team works closely with our property finance lawyers and private client department to offer specialist advice and deliver a seamless experience for our clients. 

We offer a client-focused personal service. We have a long history of acting for high-net-worth individuals, their families and connected businesses, marrying discretion with the highest level of expertise and clear and pragmatic advice.  

To speak to one of our specialist Residential Property lawyers in Marylebone, please email Muscatt Black Graf on contact@muscattblackgraf.com, or click here to fill in our online contact form. 

This blog was prepared on 24 April 2024. It is not intended to be advice and should not be relied upon as such. 

 

 

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