If you remortgage with your current lender, by simply moving to a new rate or deal, it's considered a “product transfer” and requires no additional legal work. Otherwise, yes, a remortgage will require you to have a solicitor or conveyancer, to help with the legal side of things.
It is possible to remortgage with your current lender, although this is usually referred to as a 'product transfer'. A product transfer is not normally considered to be new lending (unless you take the opportunity to borrow an additional amount), whereas remortgaging with a different lender would be.
Usually, remortgaging is a fairly straightforward process. Finding and applying for a new mortgage is the easy part, but exactly how the rest of your remortgaging works depends on whether you stay with your current lender or switch to a new one.
You need a solicitor because they need to make the transfer from one lender to another. So let's just say you're with NatWest and you're remortgaging to Santander, for example, your solicitor will take care of that transition to make sure that the deeds and the mortgage are with the new lender.
If you're commencing a new rate or deal with your current lender (otherwise known as a 'product transfer'), you shouldn't need a solicitor. For example, a solicitor isn't needed if you're borrowing more from your current lender to extend your property.
Whether purchasing, selling or remortgaging a property, you will require a recognised solicitor or conveyancer to complete the legal work both for you and your mortgage lender.
The good news is you don't need to get a mortgage valuation or your property valued prior to getting a remortgage. You will, however, need to know roughly what the market value is before you start your remortgage.
Typically it takes around 6 weeks to remortgage, although it is possible to do it within a week if your broker, bank and solicitor are all aware of a pressing completion date.
Remortgaging is the process of moving your mortgage on your existing property from one lender to another. Your new mortgage will then replace your old one. You may want to remortgage if you're: coming to the end of your existing rate.
How long does it take to remortgage with the same lender? From start to finish, it normally takes around six weeks to switch to a new mortgage deal with the same lender. Your actual “transfer” from one deal to another should happen within a matter of days.
When you switch from one mortgage deal to another, it's known as remortgaging. You can remortgage your property with the same mortgage provider or a different one - as you're not moving home, your new mortgage will still be secured against your existing property.
When you apply, the lender will check your income and outgoings to see if you can afford the remortgage deal. If you fail their affordability checks, your application is likely to be refused. Lenders may see it as too risky to approve, from their perspective.
Stay with the same mortgage lender. This is the most common way of not paying the early repayment charge when remortgaging or buying another property. It does however limit you to the mortgage product options the mortgage lender offers which may not be as preferential as you can get on the open market.
How long does conveyancing take when remortgaging? The remortgage process takes one to two months. It is generally quicker if you are remortgaging with the same lender. So if you are thinking of remortgaging before your current deal expires, leave at least two months.
Remortgaging to get a better interest rate
Once the deal ends, you'll probably be moved onto your lender's standard variable rate, which will usually be higher than other rates you might be able to get elsewhere.
There's no limit on the number of times you can remortgage your home, but most people do it when their fixed-rate period ends. Whether you decide to remortgage early or at the end of the fixed-rate, it's vital that you have all the details so you can make an informed decision about remortgaging.
The surveyor will take about 15-30 minutes to look around the property for any obvious defects that could impact its value and confirm key details for the lender. After the visit, the surveyor will make an assessment of what the 'market value' of the property is.
As part of a remortgage application a lender will instruct its own valuation in order to be sure that the property is adequate security for the mortgage. That may be a full valuation by a surveyor but could be a drive-by valuation when the valuer inspects from the road or even an automated desk-top valuation.
Mortgage lenders will only deal with certain conveyancers and solicitors – those on their “panel” – who in turn usually pay the lender for the privilege. If you do not use a conveyancer or solicitor on their panel, you will usually have to pay for the bank's representation fees.
Instructing a solicitor before an offer is accepted can significantly speed up your move and reduce stress in the process. Many of the initial legal steps can be completed in advance, potentially shaving weeks off the conveyancing process.
Many situations may require you to instruct a solicitor, from buying a home to obtaining a divorce. More broadly, a solicitor is usually your first point of contact in any legal proceedings, and may also act as your legal representative (sometimes in combination with a barrister). ...
Your ability to remortgage with credit card debt, whether for a higher or lower mortgage amount than your previous agreement, will be dependant on factors like your age, the amount of equity you own in your property, the amount of credit card debt you have, and your income.
If they realised the amount of money that can be saved – they would be daft not to consider a switch. If your current mortgage rate is over 3.5% we say it is worth switching if you can.
Start looking around three to six months before your rate ends as delays due to covid has meant it now takes longer to remortgage. You want a better rate. If you are tied into an initial deal then you might have to pay an early repayment charge which can be huge, often 2-5% of your outstanding loan.