Remortgages

Taking out a remortgage on your existing home has many advantages from a financial point of view. It can help you:

• save money by taking advantage of a better mortgage rate
• raise money for a major outgoing such as a child’s wedding
• provide funds to extend a property and avoid moving home
• consolidate debts by releasing equity in your home to pay off other loans, credit cards etc.

The services of an experienced residential conveyancing solicitor will be essential however, to ensure your interests as the property owner are protected throughout the transaction, especially if you are moving from one lender to another.

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The grass is always greener

Because banks and building societies are regularly introducing new finance products to the market, depending on the type of mortgage you currently hold and whether you are tied to a particular interest rate, some householders can effectively save money and reduce their monthly payments by remortgaging.

In certain circumstances, for example, if your income increases, you may want to make higher mortgage payments in order to cut the length of the mortgage term.

Remortgaging, rather than extending an existing mortgage, is another way of paying for improvement work to your home without necessarily costing you much more in monthly outgoings.

Once you have decided to remortgage, to find the best financial deal at the lowest cost will require a certain amount of research. Mortgage brokers are specialists in this field and will offer remortgaging quotes from a variety of lenders to accommodate your wishes at no cost to you.

It can also be worthwhile contacting your current mortgage supplier to see if it is willing to move you to a more advantageous deal.

When you’ve done your sums, if you are happy to go ahead, you should contact a solicitor who is experienced in residential conveyancing for both freehold and leasehold properties.

Although the procedure for a remortgage is simpler than for an original purchase, because the title deeds remain in the same name, there are still a number of legal processes which must be completed.

Whether you are staying with your existing lender or going to a new one, a valuation of your home will be needed and a full mortgage application form completed.

Your solicitor must then check the deeds and any other documentation (such as charges on the property), conduct local authority searches, and act as the intermediary for repaying the existing mortgage and transferring funds for the new remortgage.