A remortgage is how you pay off your existing mortgage with the proceeds from a new mortgage using the same property as security. Remortgaging is very common in the UK, as usually the purpose of swapping mortgage lenders is to get a better interest rate or more favourable terms, such as a long term fixed rate where you have peace of mind that your payments will not go up, but of course they wont go down either.
Remortgaging does not involve moving home or taking out a second mortgage on the property. In effect, the transfer of a mortgage from one lender to another. Homeowners may choose to remortgage for various reasons, usually to reduce the overall monthly mortgage payment amounts. Other reasons may include to reduce the size of repayments, to pay off a mortgage earlier, to raise capital, or to consolidate other more expensive short term debts, however this can lead to the total amount to be repaid increasing.
Homeowners often mis-use the expression remortgage when they are simply switching from one product to another with the same lender; this is not a remortgage which involves the removal of one legal charge over a property and its substitution with another in favour of a new lender.
The ability to remortgage is very much based on an individual's circumstances and as the costs involved can be expensive. It is always best to take advice from a suitably qualified individual such as the advisers at Charles Frank Finance.
This is usually the first question which is asked and is difficult to answer as all transactions are different.
A usual estimate for a remortgage would be 4-8 weeks.
We will do what we can to complete your transaction as quickly as possible.
We will endeavour to keep you informed at all stages of the progress of your transaction.
If at any time you have any queries, please do not hesitate to telephone (02920 007661) or email us (email@example.com
We are required under Money Laundering Regulations to verify your identity to guard against money laundering and fraud.
Where you are purchasing with a mortgage, we are also required to verify identity as part of our instructions.
Photo ID such as a passport or driving license is required as a minimum.
Money will be transferred on the day of completion from your solicitor.
When your solicitor has finalised a completion date you may be asked for relevant funds for fees / costs to complete your mortgage.
When a completion date is agreed, your solicitor will obtain a redemption statement. Provided there is no shortfall (where the proceeds of a sale/remortgage will not cover the redemption figure) your solicitor will arrange for your exisiting mortgage to be repaid on completion.
You should not stop your direct debit payments until you have been advised that the transaction has completed.
Sometimes when a property is remortgaged it is also necessary to carry out a "Transfer of Equity". This will be necessary where the names of the registered owners of the property differs from the names on the new mortgage.
A Transfer of Equity is merely the process of adding or removing someone's name from the legal title.
This will usually be a requirement where there is a mortgage and there will be adult occupiers in the property who are not owners.
This will be a requirement of your lender as it is possible for occupiers to obtain rights in a property. By signing the consent they are confirming that if you default on the mortgage, they will vacate the property. They may be required to seek independent legal advice before signing the consent.
Following completion your transaction will be registered at the Land Registry. The Land Registry should keep copies of all necessary documents of title and therefore in the majority of cases anything required for a future sale can be obtained from them.