Remortgages Solicitors Liverpool & London
The process of replacing one mortgage on a property with another one.
Carrying out a Remortgage
A remortgage – sometimes called refinancing – occurs when you pay off one mortgage with proceeds from another, replacement mortgage.
There are many reasons why you would want to switch mortgages. However, the most common ones are to obtain a more favourable interest rate from a different lender, to extend the term of your mortgage with a different lender or to release some of the equity in your property – for example by using a secured loan to raise money.
If you are simply switching from one type of mortgage to another but remaining with the same lender then this is not a remortgage and it can usually be dealt with by the lender themselves without a solicitor being involved.
The Remortgage Process
- The process involved in a remortgage is simpler than that in a sale or purchase. However, because a new lender is involved there still needs to be an investigation of your title to the property to make sure that the new lender has their mortgage adequately secured on your home.
- As with other transactions we will need to take your preliminary instructions – for example details of your present mortgage and the whereabouts of your documents if the mortgagee does not have them. We will also need to ask you to provide us with evidence of your identity so that we can comply with the strict money-laundering duties that apply. You will need to let you your existing mortgagee know that we are acting in the remortgage so that the documents can be released to us. You will also need to provide us with a copy of your house insurance documents.
- We will then contact your existing mortgage company and obtain a statement from them showing how much is outstanding on your existing mortgage – known as a ‘redemption statement’ and the documents for your property. We will also contact the new mortgage company (for whom we will normally act as well) and ask them to forward all necessary paperwork to us.
- We will carry out various searches as appropriate to make sure that there are no issues with your property that could affect the interests of the new mortgagee. We may need to ask that you pay for these searches in advance.
- Once we have received your mortgage offer from the new mortgagee we will check it through to make sure that the requirements that it places upon you are not too onerous.
- Once we have checked the title and checked the mortgage we will ask you to sign the mortgage deed.
- After the paperwork has been signed we can complete your remortgage, pay off your previous mortgage from the funds received from your new mortgage and forward any balance to you (or request that you pay a balance to us if you are reducing the amount of your mortgage). If there is a sum due from you this must be paid, together with any Land Registry fee, before completion of the remortgage takes place.
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