Choosing a mortgage is a long-term commitment that locks you into a set repayment term with your chosen mortgage lender. Although it's debt that homeowners pay for years, it's not uncommon for homeowners to reconsider their current financial options. You may want to do this due to a change in lifestyle, an upcoming promotion, or simply the appeal of better deals in the market. For this reason, homeowners can remortgage their loans.
The remortgage process is an excellent way to capitalise on more favourable deals for your mortgage without moving out of your current home. Plus, it's a strategic move if there's a broader range of products in the market that will fit your financial needs. However, like any transaction involving real estate, it requires plenty of legal work and processes. For this reason, homeowners need to receive proper assistance through an expert conveyancing solicitor.
Understanding the Role of a Conveyancing Solicitor
Most homeowners commit the mistake of going through a remortgage process without getting the assistance of a conveyancing solicitor. Although it's possible to apply for a remortgage yourself, you may get caught up in the numerous responsibilities and paperwork you'll need to handle. For this reason, it's important to look for a reliable conveyancing solicitor before going through this drastic change to your mortgage plan.
A conveyancing solicitor is necessary if you'll be moving to a new lender with better rates. This means you're effectively closing your current mortgage with your current lender to swap providers. Since this process will require several back and forths between parties, it's best to have a conveyancing solicitor double-check your preparations.
Going through a Remortgage with a Conveyancing Solicitor
Unless you're simply engaging in a product transfer with your current mortgage lender, you have plenty of paperwork ahead of you if you don't work with a conveyancing solicitor. Thankfully, the process will be streamlined within four to eight weeks. It will require you and your conveyancing solicitor to coordinate with your old and new lenders by submitting new search requests along with other necessary documents to authenticate your remortgage.
In this article, we'll break down the different steps you and your conveyancing solicitor by their side will go through as you remortgage your loan.
Step#1: Transaction Confirmation
Your solicitor will confirm the identity of each person included in the mortgage and property deeds. This will ensure that your closing payments will be delivered to the right entities as you remortgage. If you're paying for part of an existing mortgage, your solicitor will also confirm your funds to debunk claims of money laundering.
Step#2: Document Collection
Once your conveyancing solicitor confirms the transaction's authenticity, they can then obtain the necessary documents to push through with a new deal. They'll need to get your title registration documents from the HM Land Registry. These Official Copies will confirm your authority as a legal owner for the property you want to remortgage.
Besides affirming your identity as the homeowner, these documents will also list down any potential legal charges currently registered against the property. If there are any present, your solicitor will apply to remove these legal charges once the mortgage is repaid.
Step#3: Accept Remortgage Offers
The advantage of undergoing a remortgage allows you to look for other lenders with better rates than your current one. For this reason, you may need to shop around different lenders before committing to a favourable deal. Thankfully, your conveyancing solicitor can help you look for good deals in the market with compelling loan terms.
Once your prospective lender issues a formal mortgage offer to your conveyancing solicitor, you can then permit them to solicit a current mortgage statement from your current lender. This will confirm the required amount you need to pay as closing costs for your existing mortgage.
Step#4: Procure Property Search Requirements
Similar to the first time you'll apply for a mortgage, you'll need to present your new lender with the proper search requirements to affirm your property's condition. Since your real estate's market value may have changed since when you first purchased it, your new lenders need to coordinate this with your conveyancing solicitor. Most lenders will only need a Local Authority search, while others will accept a search indemnity policy.
Step#5: Request for Official Search with Priority: whole title (OS1)
Your conveyancing solicitor will require a pre-completion search to prevent any other charges from being registered against your property within the priority period. This serves as a security to your property within 30 days while you're processing your remortgage. If your Official search with priority whole title (OS1) doesn't push through completion within the allotted 30 days, you'll need to request it again before completion of your transfer will take place.
Step#6: Confirming Financial Securities
Since performing a remortgage can be a risky endeavour for you and your lenders, you need to ensure that all parties are financially capable of upholding their financial responsibilities. Besides confirming the offers of your new lenders, your solicitor will also prove a bankruptcy search to ensure that none of the legal owners are technically bankrupt. This ensures that your new mortgage plan won't lead to complications in the future.
Step#7: Settling on a Completion Date
Once your conveyancing solicitor confirms your mortgage requirements, you can then set a completion date. Afterward, the solicitor can submit a Certificate of Title to your new lender, confirming the submission of necessary requests and documents to let your new lender release the remortgage fund under your new terms.
Choosing to remortgage your current plan with your lender is a major turning point to your ownership of real estate. If you don't handle it properly, you could simply be extending the loan term of your mortgage. For this reason, you need to weigh all the necessary variables before committing to a remortgage.
A homeowner needs to consider several factors before committing to a remortgage, primarily with their current sources of income and loan-to-value ratio. Unless you're willing to oversee closing costs and the remortgage process above, you shouldn't make such a committed decision. If you need advice on what to do with your current financial situation, it's best to seek assistance from real estate experts.
When looking for a conveyancing solicitor, it's best to find a reputable company with credible experience in the field. Although it's important to get recommendations from your peers, sometimes the best way to look for a reliable service is to do your own research. Thankfully, there are numerous providers you can search and compare online to give you the proper assistance with the remortgage process for your home.
If you need help with your remortgage, our conveyancing solicitors in Pembrokeshire can assist you throughout the entire process. Our team at Conveyancing Calculator is here to give you the right advice and ensure that you're making the right financial decisions. Contact us and receive instant online residential conveyancing quotations today!