If you're remortaging with a new mortgage lender, it's likely you'll need a conveyancing solicitor to help with the transfer. This is a legal process and isn't the same as just switching to a new mortgage offer with the same lender.
What is remortgaging?
Remortgaging can be confusing. It doesn't mean that you move home or that you take out an extra mortgage on your home. It simply means that you transfer your mortgage to a new mortgage provider.
Remortgaging is a legal process, because the deeds and ownership of the property will reside with a new lender. This means you need a conveyancing solicitor. If you are simply renewing a fixed rate with the same lender, you will not need legal advice.
When you remortgage, the debt that you owe switches to a new lender. That lender will then hold the deeds to your property. Your conveyancing solicitor will register your property with the land registry and update the deeds.
What are the advantages of remortgaging?
People often end up switching mortgage providers when they come to the end of a fixed rate. Most mortgages come with an introductory rate that can usually last anywhere between one to five years fixed rate. After that, the interest switches to a variable mortgage rate, which can be more expensive. For a better deal, consider switching to a new lender at the end of your fixed rate.
Are there downsides to remortgaging?
If you've nearly finished paying off your mortgage, you probably won't get as big a financial benefit from switching. This is because you often cancel out any money you save on a new rate with the cost of legal advice.
Remortgaging with a new lender is a legal process. This means you'll need a conveyancing solicitor, a valuation and there may be other costs involved. If you're leaving your mortgage lender before the end of your fixed rate, there may be an early exit penalty fee.
How should you proceed with a remortgage?
You don't need to have reached the end of your fixed rate to switch to a new lender. There are lots of mortgage deals out there and it may be a good idea for you to switch. Do the calculations on how much your early exit fee might be compared to the savings you'll make.
We recommend having a look at the fixed rate mortgages available on the high street to get a sense of what the average is. You could then speak to a mortgage advisor or broker to help you explore your options and what these mean in term of monthly repayments. A broker can help you with things like affordability checks, explain mortgage payments compared to your current mortgage and go through any arrangement fees with you. You may want to check your credit score before starting the process.
Once you have made the decision to remortgage, you will need to instruct a solicitor to liaise with the lender. When choosing legal service providers to help with your mortgage, we recommend looking at reviews and comparing costs. You want a solicitor who is experienced working with mortgage brokers and is confident doing remortgages.
What does a conveyancing solicitor do when remortgaging?
Your conveyancing solicitor and lender will need to communicate and confirm that the mortgage product you've selected is appropriate. Your solicitor will then deal with the legal paperwork side to transfer your deeds to the new mortgage. It's similar to the work they did when you bought the property, but should be simpler. Solicitors also need to register the redemption of the existing mortgage and the new mortgage with the Land Registry.
Many of the same legal processes are in place as when you bought - a solicitor will check ID, consider valuations and searches and check the Land Registry. Your new lender may require extra checks, which your solicitor will deal with.
This is based on the idea that you are remortgaging under the same terms (keeping the same people on the mortgage). If you are adding someone new to the deeds, or removing someone, it's considered a transfer of equity. This would be slightly more complicated.
Compare solicitors now to get the help you need to remortgage your home.