When and why to re-mortgage
To move to a lender that offers you a better interest rate, or a fixed rate of interest
To increase the amount you are borrowing, perhaps to finance home improvements or university fees, or to finance another purchase
To take advantage of more flexible terms offered by a different lender, such as the right to take payment holidays, or to make overpayments without penalty
When a relationship ends, so one party can buy out property interest of the other
To swap an existing residential mortgage to a commercial mortgage eg if you plan to move out and let your home, or to use your home as security for a business loan
To convert to a different type of mortgage available from a specialist lender if, at the end of an interest only mortgage term, you don’t have the capital to repay the loan but wish to continue living in your home.
Process
Application
When you apply for your new mortgage the lender asks you to nominate a solicitor to act for you. They then instruct us at the same time as your mortgage offer is issued.
We are on the panels of most mainstream lenders. Because these lenders know us, work often goes more smoothly. Even so, JWS is fully independent and we put your best interests first, recommending separate representation if it would be an advantage for you.
what we do for you
Your lender will require your solicitor to “certify the title” this means confirming that the property is marketable and has no problems that could reduce its value. The lender will apply the same due diligence as on the purchase of a property to ensure that it will be worth enough to repay the loan if, eventually, you don’t.
We will:
Verify your identity
Obtain and review title information for the property you wish to use as security for your new mortgage
Carry out searches and enquiries, clearing up any issues that might stand in the way
Report to you on the terms of your mortgage offer
Check buildings insurance
Refer back to the lender on any issues
Explain your options when you have to make decisions
Once your lender’s requirements have been met and you are happy with your mortgage offer, completion can be arranged. We will:
Obtain a redemption statement from your existing lender
Prepare a completion statement showing all costs and receipts, and the surplus or deficit we anticipate and the end of completion day
Collect any funds needed from you
Receive your mortgage advance
Initiate pre-completion searches at land registry
Prepare all documentation for signature by you
At completion we will:
Pay off your existing loan
Date and register the new mortgage
Pay any surplus funds to the account you nominate
After completion we will:
Ensure the land registry entry protecting your previous mortgage is cancelled
Check land registry updated title information for your property
Send updated title information to you and to your lender
Retain your file in our archives for not less than 6 years
Benefits of instructing Julie West Solicitors
We will gather information about the property to be used as security. We will identify and address any issues that might stand in the way. We will deal with any ancillary legal work such as transferring the property from one party to another. Using our experience, we will explain your options where you have a choice how to proceed.
Borrowing money secured on your home is a serious matter, with far reaching implications. Not all re-mortgage work is straightforward, and dealing with lenders can be challenging. Our expert solicitors will help you every step of the way.
“Thanks for making what I thought might be a complicated matter seem so straightforward.”
Timescale
We normally expect to complete a re-mortgage within 4 - 8 weeks. Speed of work mainly depends on your lender issuing a satisfactory mortgage offer and responding to any queries.
“Efficient, friendly service”
Fee list
Payments to third parties (disbursements)
Searches: £350 - £500 depending on location and if required by your lender
Land Registry fee for registration: £20 - £140
Pre-completion bankruptcy and priority searches: £12 plus VAT
Title information: £18 (£3 plus VAT per document)
Leasehold
Leasehold information pack: £400
Notice fees for transfer and charge: £125 each
Additional
Electronic ID checks per individual: £5 plus VAT
Re-mortgage tips
In routine re-mortgage cases lenders sometimes offer “free legal work” to new borrowers, usually on condition you use the lender’s preferred conveyancer. This can be hard to resist but should come with a health warning because the process will be driven by the lender’s needs, not yours.
Lender’s conveyancer’s usually limit their retainer so that they are not acting for you. This means if something goes wrong you will have no recourse. You are not represented so no one is responsible for advising you or looking out for your best interests.
Some lenders cut costs and save time by using “title insurance”, skipping the conveyancing searches. If you are increasing your loan this could well be a false economy. Just imagine the problems when you come to sell your property and another firm’s due diligence uncovers problems that your lender’s solicitor failed to spot.
There really is no substitute for expert independent legal help.
Law Society Conveyancing Quality Scheme (CQS)
Our specialist solicitors are accredited under CQS. The Law Society launched the CQS scheme to help consumers make an informed decision about who to instruct to assist them with residential property work.
The primary aim of the scheme is to help the public avoid advisers that are unregulated, uninsured and untrained. The scheme is also used as a badge of trust, relied upon by lenders as well as other accredited firms.
Achieving the CQS accreditation shows that we follow best practice procedures to meet the highest standards of technical expertise and service helping clients with property work.