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The remortgage
process is much simpler than buying a new home, because the deeds
of the property are already registered in your name.
Basically, these are the steps
involved:
-
The lender will require a valuation to ensure the value of your property
is sufficient for them to lend on.
-
You'll be required to make an application to the lender in the same way as
when buying a property. The application has to be underwritten by the lender,
who will require evidence that the loan to date has been maintained. They'll
then issue you with an offer.
-
Conveyancing work will need to
be carried out. During the
conveyancing process, local searches will be conducted and a report and title
will be sent to the new lender.
-
Finally, the solicitor will ensure your previous lender is repaid when the
new lender releases the new mortgage funds. If you're borrowing additional
funds, the solicitor will release these to you on, or shortly after,
completion.
Remember: We will help
with your application, and liaise with the mortgage provider on your behalf,
to ensure a smooth and speedy transaction for you.
What are the costs involved?
Remortgaging involves far less cost
than those incurred when buying a property, since in most cases charges either won't apply
or will be lower than when you first purchased your mortgage, including:
- Stamp duty - you won't be liable for this at all when
remortgaging.
- Legal fees - solicitor's costs
should be lower than when
purchasing the property, since the legal process is less complex for
remortgaging than purchasing.
- Homebuyer's report or survey - if you've undertaken a homebuyer's
report or full structural survey when purchasing the property, you are unlikely
to need to repeat this exercise when remortgaging.
- Other costs - other
costs could apply (as below) but on many
remortgage deals the new lender will even meet some or all of
these.
- Early repayment charges (applicable in some cases).
- Lender's arrangement fee.
- Booking fee.
- Valuation fee.
- Legal fees.
- Higher Lender Charge (in some cases).
- A discharge fee from your old lender (often called a 'sealing fee').
Remember - When
recommending whether you switch mortgages,
we will take into account any charges that may apply,
and the extent to which (if at all) these may reduce the potential savings to be
gained by remortgaging. |
