Remortgaging your property
How does remortgaging work?
You will need to apply for a loan with your new chosen lender – either directly to the lender or via a mortgage broker. If you are looking at this page, you may have already done this part...
Once your mortgage in principle has been agreed (or earlier if you want to save time later) you will need to appoint a solicitor to:
- Check the title to the property, to ensure it meets your new lender’s requirements;
- Undertake a local authority search, or organise search indemnity insurance (a cheaper policy covering anything that might have been discovered in a search). Most high street lenders allow for insurance to be used, which saves time as well as money, and we will be able to confirm whether that is the case once your offer is issued by your lender;
- If the property is leasehold, obtain relevant information from the freeholder and any management company who deal with service charges;
- Repay the existing loan with your current lender, using the money released by your new lender (and any extra that you may be adding in, if you are reducing your borrowing). If you don’t have a current lender we still use the term “remortgaging”, although there is no existing lender to repay;
- The process of remortgaging a property usually takes between four and eight weeks. However time savings can be gained by instructing us early, so that we can complete most of the legal checks even before your formal offer is issued by your new lender.
How much does it cost to remortgage?
It is important to factor in all the costs involved in remortgaging a property, as you need to ensure the cost of remortgaging is not higher than the saving you would make switching to a new mortgage deal.
Typical payments involved in remortgaging consist of:
- Solicitor’s fees. For a breakdown of the typical costs involved, please use our online calculator;
- Land Registry fees;
- Repayment of your existing loan (if you have one), to include any early redemption charges from your current lender;
- Arrangement fees with your new provider, if applicable;
- The cost of the property valuation.
There is no stamp duty to pay on remortgaging, unless you are also transferring ownership of the property e.g. from a sole owner to joint owners, or vice versa. If that is the case, please refer to our “transfer of equity” page. The two transactions can usually run along-side each other to save you time.
Do you need a solicitor to remortgage?
The short answer is “yes”, because your current and new lenders will insist on it. Shoosmiths are on the panel of all of the large mortgage lenders, and most of the smaller ones too so we can help you.
Conveyancing for standard remortgaging is generally cheaper than when buying or selling a home, as it involves the property that you already own. However legal advice will still be required and there will be some paperwork for you to complete at the initial stages. Your mortgage lender will want a solicitor to be appointed to ensure their mortgage over the property is properly registered at the land registry. If additional work is required, e.g. to resolve an issue with the title, additional fees would be payable but we would advise you of these before they are incurred and obtain your confirmation that you want to proceed.
If you have any questions regarding mortgages, please contact us and we can provide you with the information you require.