Remortgaging is the process of repaying your existing mortgage and replacing it with a new one from a different lender, usually to get a better rate. Everyone is looking for ways to save money, and remortgaging could be the answer. There are two main reasons for remortgaging:
Sometimes better deals are offered to new borrowers than to existing ones.
As house prices rise, it can be used as security for extra borrowing.
You should ensure that there will be no penalty charge payable to your present mortgage lender and that you are not tied to them. A combination of having to pay early repayment penalties to one lender, as well as paying fees to a new lender in order to switch, can wipe out many of the savings that you could otherwise make. You need to know exactly what the new mortgage is going to cost you and how long any discounts or fixed rates apply.
Once you have got your new offer of mortgage, the legal process is fairly straightforward. We can carry out the legal checks that your new mortgage lender will want. We will check exactly how much you need to pay to your old lender on a fixed date to pay off everything that you owe. On the chosen date, we then draw your new mortgage loan from the new lender, pay off the old loan and pay over to you any surplus. Changes are then registered with the Land Registry.
It is important to remember that if you have taken out a second loan on the property with a different lender (often arranged in conjunction with home improvements such as window replacements or new conservatories) you may need to pay off that additional borrowing as part of the deal.
If you are remortgaging, then please contact our team for a quote.