Remortgaging with the same lender is known as a product transfer. If the remortgage is a simple one you may not need a solicitor's services. However, if you're making changes (such as removing or adding someone to the mortgage) you're more likely to need a solicitor or conveyancer.
Mainly because remortgaging with the same lender – doing a product transfer – is easier. When you switch mortgage lenders, you need to reapply for a mortgage. That means passing eligibility and affordability checks, having your property valued, and getting solicitors involved.
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.
It could be easier to refinance with the same lender since you already have an established relationship. The company has your information on file, including your payment history and financial details, so it might be able to streamline some of the documents required on a refinance.
It is possible to remortgage with your current lender, although this is usually referred to as a 'product transfer'. ... The advantages of remortgaging with the same lender are: There are generally less fees to pay as you are able to avoid legal costs and valuation fees.
If you are refinancing with your current home lender, your escrow account may remain intact. However, if you are refinancing with another lender, your current escrow account will be closed, and you should receive a check for the remaining balance within 30 days of paying off your former lender.
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.
Your last three years' accounts/tax returns (if self-employed) Proof of bonuses/commission. Your latest P60 tax form (showing income and tax paid from each tax year) ID documents (usually a passport)
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.
The lender will issue at least 2 copies of the mortgage, one to the borrower and another to the conveyancer. The conveyancer's copy should incorporate the lender's instructions to the conveyancer to act on its behalf in the remortgage. It should also include the mortgage deeds and any other necessary legal documents.
Do I need a deposit? You don't need a deposit for a remortgage as you can use the equity you have in your home. If you wanted to get a cheaper mortgage, using a deposit to add to the equity you already own is an option and this will lead to you needing a smaller mortgage.
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.
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.
To remortgage with a new lender, you need to start looking into available options 3-4 months before your rate expires. But transfer to a new mortgage with your current lender, and you could be done with your switch a little quicker – usually in a matter of days.
Investment Property: If you have buy to let properties, you can access equity from those homes. A remortgage will be based on rental incomes, not your own annual earnings.
Get ready to remortgage
The remortgaging process typically takes from 4 to 8 weeks after you apply. For most applications, you'll need to speak to one of the lender's mortgage advisers, who are qualified to advise you about the best deal for your needs.
Do mortgage companies check your details with HMRC? Yes, they can. The HMRC Mortgage Verification Scheme is being used more and more by lenders. The scheme aims to tackle mortgage fraud by allowing lenders to contact HMRC and check if the numbers on your application match their records.
To avoid paying your lender's standard variable rate (SVR), you should aim to switch mortgage provider – or even just mortgage deals – as soon as your current offer ends. ... It is usually considerably more expensive than any new mortgage deal, either from that lender or any one of its competitors.
Your home will require a valuation in order for you to remortgage it. ... If the lender's valuation is less than expected, you can get a Chartered Surveyor to survey your property and provide a valuation to see if your lender will reconsider their original valuation. Read more about property valuations.
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.
Another reason lenders might encourage you to refinance is to prevent you from seeking out a lower rate elsewhere. By offering the best rates, banks are able to keep their account holders' business, and ensure a positive experience to promote future business.
You won't skip a monthly payment when you refinance, even though you might think you are. When you refinance, you typically don't make a mortgage payment on the first of the month immediately after closing. Your first payment is due the next month. ... In a refinance, your original loan is paid off at closing.
When you refinance a loan, the original escrow account remains with the old loan. ... All the property tax and insurance payments you have made to that account, since the last payment was made, will be returned to you, usually within 45 days via wire transfer or check.