A re-mortgage is where you decide to take a new loan from a new Mortgage Lender and repay your existing Mortgage Lender.
A modern day example is that you may have been transferred the Standard Variable Rate (SVR) with your current lender when your low fixed rate deal ended and you may wish to transfer to a new lower fixed rate
The above example is a strong factor as to why remortages are particularly popular at present. However, banks are also becoming more competitive amongst each other which means fixed rate mortgages are now better than the SVR which people have been ‘enjoying’ for some time.
Re-mortgaging process is a combination of the general Conveyancing work we do. We have t comply with the Council of Mortgage Lenders (CML) Handbook which details lenders differing requirements. Some lenders require full searches, the same as if you are buying again, whilst others are happy with search indemnity which is quicker & more cost effective. We have to obtain Office Copies of the Title to your existing property from the Land Registry. When searches are received along with your new mortgage offer, a completion date is set to re-mortgage. We apply for a redemption statement (the amount required to repay your existing mortgage) and we do our final searches and request the new funds from your new Mortgage Lender.
To complete the remortgage, we effectively pay off the old loan and register the change of Mortgage Lender at the Land Registry.
The last thing to consider is the offer of ‘Free Legals’. As with the lenders individual requirements detailed within the CML, the term for ‘Free’ varies greatly. Some free work involve a company, not usually regulated by the Solicitors Regulation Authority (SRA) dealing with the remortgage. However, I’ve seen small print that actually states they act for the bank & not the borrower. Put bluntly, they are acting in the interests of the bank & not you.
I’ve also seen terms for ‘free’ legal work which relate to a very limited scope, such as a freehold property only. Added prices are usual for leasehold properties and can end up costing much more than using your own Solicitor. Our fixed fees include all work, irrespective of the type of property. We also regulated by the SRA, carry two Law Society quality mark accreditations, and always act in your interests.