A mortgage is often one of the biggest and longest financial commitments we make, and during the lifetime of your mortgage you will likely consider remortgaging several times.
Many homeowners consider remortgaging their house either because an existing deal has come to an end or, particularly with the major increases in the cost of living that we are seeing, to decrease their monthly commitments and benefit from a better interest rate deal.
When you find the right new mortgage deal for you, remortgaging can make financial sense, but do you need to instruct a solicitor for this process?
First of all, what is remortgaging?
Remortgaging is when you switch your current mortgage deal to a new one, without moving property. Your new mortgage will then replace your old one.
The switch over from one mortgage to another could be in the form of a new agreement with your current mortgage lender, or you may move to a different lender altogether.
Reasons to remortgage
There are several reasons as to why you may be considering remortgaging your home.
- To reduce your monthly mortgage payments
- To fund new home improvements
- To help relieve any financial anxieties you and your household may be experiencing
- Changes to your personal circumstances e.g., divorce
- The value of your home increases significantly
- Your current mortgage deal is ending
When don’t you need a solicitor?
If you are staying with your current provider and just changing or altering deals, then you are unlikely to need the advice of a solicitor. Additionally, if you are simply borrowing more on your existing mortgage deal with your existing lender, there are no legal costs involved, only the costs associated with the loan increase and repayments.
When do you need a solicitor?
If you are changing from one mortgage provider to another, you will need a lawyer to advise you on your options and the process as well as handling the legal and technical aspects of the transfer.
Often lenders will include a free legal package with their remortgage deals meaning their chosen conveyancing solicitor will cover the legal requirements. We advise always double checking that this service is actually free and there are no hidden costs!
However, it may be that you want the freedom to choose a solicitor you know you can trust to help with the legal side of things.
There are some situations where you will need to appoint your own solicitor regardless:
- Adding someone to the mortgage – when you add a friend or partner to your mortgage you are effectively changing the ownership of the property. This is also known as a ‘transfer of equity’ You will need a solicitor in this instance to amend the deeds and help to draw up the official documentation.
- Removing someone from the mortgage – similarly to the above, the removal of someone from a mortgage is changing the ownership of the property and thus a solicitor is required to carry out the relevant legal work.
How long does a remortgage take?
The process of remortgaging usually takes 1 to 2 months to complete. If you are staying with your current lender, this is generally quicker than if you are moving from one to another. So, if you are thinking about going through a remortgage, we advise you leave at least 2 months to do so.
How can we help?
Our specialist team of conveyancing solicitors can oversee the whole of the remortgaging process and provide you with updates about your remortgage in an easy-to-understand manner.
The requesting of title deeds and mortgage redemption statements, checking of the new terms, and amending your title deeds with the Land Registry – are just some of the processes our team can help you with, taking the stress off your shoulders and avoiding delays to your remortgage, so you can focus on the more important things in life.
How much does a remortgage cost?
At Hegarty Solicitors, we charge a fixed fee of £750+VAT, or £930+VAT if the remortgage includes a transfer of equity plus disbursements. We pride ourselves on having zero hidden fees so that you know exactly what you’re paying.
Speak with one of our conveyancing solicitors about remortgaging your home today.