There are certain factors that need to be taken into consideration when remortgaging such as:
An initial deal such as a two- or five-year fixed rate, you will be contacted by your lender ahead of time before the expiry date. You will be informed when you are due to regress to the Standard Variable Rate(SVR). The SVR is the lenders’ normal interest rate without any discounts or deals. Supposedly the SVR is higher than your deal rate of interest, this is the time to investigate whether you can save money by remortgaging.
It would be best if you could acquire a redemption statement from your lender ahead of time. The redemption statement is essentially a legal document that lays out the exact amount that you need to pay the bank, in order for you to fully repay your home loan.
An independent mortgage adviser or broker usually has connections to exclusive deals that were not available on the open market and can easily find the best deal for your situation.
You could choose between a repayment or an interest-only mortgage. A repayment mortgage is paying back both the interest and some of the loan on your mortgage monthly while the interest-only mortgage is paying the interest on your loan. Although monthly payments for an interest-only mortgage is much lower, you will have to pay off the loan at the end of the mortgage term.
When moving to a new lender, you will need to appoint a solicitor or conveyancer. We at DV Solicitors will help you sort out any paperwork needed in the process like; drawing up and signing the mortgage deed.
The mortgage provider will give you a mortgage in principle (MIP). MIP is a written indication of how much the lender would be able to loan you. It must not be confused as a mortgage offer and it is not legally binding.
The lender would conduct a valuation that confirms if the house is worth the sum you are asking to borrow. It is sometimes done online and it does not replace a survey to check the condition of the property.
You’ve done part of the legwork if you have a Mortgage in Principle and are applying for your mortgage with the same lender. The mortgage broker or lender will enquire about your job and the industry you work in, your income, spending, credit history, deposit size, and any other financial commitments if you haven’t done any of the legwork.The more evidence you have of being a reliable repayer of credit, the more chances you are to have your application approved.
Once the lender approves your mortgage application, a mortgage offer letter will be sent to you and your conveyance solicitor. The offer usually lasts six months and tells the amount you can borrow based on the credit checks, income verification, and property valuation together with any conditions. Check the offer thoroughly to ensure details are correct. Let the lender know if anything is wrong or if your circumstances have changed in the meantime.
Your solicitor will request the money from the new lender and use it to pay off the old mortgage. Your solicitor would then register the mortgage holder’s details with the Land Registry. If applicable, the title deeds are transferred to the new lender.
Our Conveyance Solicitors offer will provide you with a free initial consultation. Leave everything to us as we handle everything hassle-free for you.Our fees cover all of the work* required to complete the remortgage of your home.Please note all prices below are exclusive of VAT. The fees listed are our average fee ranges for a remortgage transaction. The fee (including additional fees and disbursements) may vary depending on the source of the instruction, your solicitor’s experience and location, the property price, and what work we are required to do.
Legal Fee: £350 – £700
Our specialist team of solicitors and licensed remortgage conveyancers provide a professional service with a down to earth approach, locking away all legal jargon and keeping you stress-free throughout the process.
Our doors are always open for you, come at any time and have a cup of tea with us!