If you have an existing mortgage which has reached the end of its term, wish to change lenders or borrow against the equity you have in your home, you might be wondering if you need a solicitor to do so.
If you are considering remortgaging with a new lender, having an experienced conveyancer to manage the process will ensure it runs smoothly. In this article, we explain how a conveyancing solicitor protects both the lender and your best interests throughout the remortgage process.
What is remortgaging?
Remortgaging is when you take on a new mortgage against a property that you already own. Usually you will be replacing your current mortgage with another to save money, consolidate debts, get a better interest rate, or release equity from the home. This could be a personal choice, or it may be that a fixed-rate deal has already come to an end.
People decide to remortgage if they discover that they can get a better deal elsewhere. It might be that you can settle the mortgage over a more suitable term, or be able to lower your monthly repayments. However, remortgaging can also be used as a means to finance any significant renovations or purchases such as cars, vans or holidays.
What does the remortgaging process involve?
If you go ahead and remortgage, your new deal will pay off the previous settlement and the process will continue. However, if you are remortgaging to raise funds, any additional finance will be paid over to use in accordance with the new terms.
This may not be completely straightforward, with some lenders requiring searches to be carried out on the property beforehand. You will also need to get a redemption statement from your current lender, showing the balance required to repay your current mortgage.
Once these details have been checked, and the lender is happy to proceed, the funds can be completed and a date will be set. You will also need to We will update your property details in the Land Registry to make sure that the previous mortgage is removed and your new mortgage is registered.
Why do you need a solicitor?
If you are remortgaging with the same lender, then it is unlikely you will need a solicitor however, in most cases a solicitor is needed to deal with the legal aspects of taking out a new mortgage.
A solicitor will ensure that the terms of your new mortgage are reasonable and make you aware of any repayments and exit fees that you need to be aware of. In addition, they will make sure that your property is ok from a legal perspective to give your new lender peace of mind.
They will also attend to the legal formalities needed to complete your remortgage including pay off your existing loan and registeringyour new mortgage with the Land Registry.
Getting help from Beyond Legal
Beyond Legal are well-versed in all areas of conveyancing and can handle everything apart form the packing. Our team offer exceptional service at competitive fees to make sure your remortgage or house move goes through without a hitch.