Remortgage a Residential Property

For expert legal advice about remortgaging a residential property, call HS Legal Solicitors on 01206500181 or contact us online.

The process of remortgaging ought to be relatively seamless. After receiving your instruction and notifying your lender of our representation, your lender will initiate the processing of your mortgage offer.

The lender will send you your portion of the mortgage offer and the firm's solicitors a copy containing their instructions once the offer has been finalised.

Define remortgage.

Remortgage refers to the act of obtaining a fresh mortgage on a property that one already owns, either to refinance the existing mortgage or to secure a loan against the property.

Remortgages comprise roughly one-third of all home loans originated in the United Kingdom. Remortgaging by homeowners provides a number of advantages, including:

• To discharge the equity in a property
• For debt consolidation
• To obtain a more favourable mortgage rate
• To conserve cash

Five Motives for Remortgaging

There are numerous motives why individuals consider remortgaging, and these motives will inevitably influence the types of remortgage offers that are most desirable.

• To Obtain a More Optimal Rate

If you are contemplating a remortgage in pursuit of a more favourable interest rate, an alternative mortgage offer could potentially significantly affect your expenditures. It is rational to contemplate shopping around if you are presently enrolled in a fixed rate plan but its term is rapidly approaching its conclusion.

• The Consolidation of Debt

Debt consolidation is a primary factor influencing individuals' deliberations regarding remortgaging. If you are a homeowner struggling to keep up with multiple debts, it may be tempting to obtain funds using your home as collateral in order to pay off these obligations. Nevertheless, it is imperative that you exercise utmost caution prior to collateralizing a loan with the property, given that doing so inherently exposes it to risk in the event of non-payment.

Home Improvements 

Many individuals remortgage in order to acquire the capital necessary to perform home improvement projects. Generally, this is regarded as a prudent course of action, given that any long-term improvements you make to your home may substantially increase its value. Spending in this way is, therefore, an investment in your property as you will likely see a return on it at some future date.

• Altering Financial Circumstances

A significant number of individuals, particularly in the current challenging economic environment, discover that they are, for whatever reason, unable to meet their outgoing obligations. Whether your situation has changed for personal reasons, due to illness, unemployment, or another factor, it is not difficult to find yourself unable to make your mortgage payments.

If this is the case, you should contact your current lender as soon as possible to determine whether or not they can recommend an alternative course of action. Remortgaging represents merely one among several potential alternatives that one might encounter.

• Equity Discharge

You might be interested in realising the advantages of an increase in the value of your home during the term of your mortgage by means of equity release. Remortgaging, which can be incorporated into the terms of the transaction, is one way to accomplish this; nevertheless, it essentially constitutes additional lending on your property and should not be undertaken lightly.

In what way may we be of assistance with the remortgage?

When remortgaging, or when switching to a new lender, the lender will typically mandate that we conduct a local search. We are able to expedite the submission of searches by utilising an internet-based system that provides us with the anticipated return date of the queries.

However, certain lenders permit us to purchase "search indemnity insurance," which safeguards the lender against any negative results that may be discovered via a local search. As an alternative to conducting a Local Search, we will consistently verify with your lender whether they accept insurance, which is a significantly less expensive option.

We will notify you of the status of your new mortgage offer and forward the corresponding mortgage deed for your signature as soon as we receive the search result and receive search insurance.

We will order a redemption statement from your current lender for the date of completion and furnish you with a completion statement once we have received the mortgage deed in its entirety.

We will redeem your existing mortgage on the date of completion and return any remaining balance to you. We will subsequently proceed with the registration of the new charge over your property. Upon the completion of the registration process by the Land Registry, we shall furnish you with a copy of the title deed for your records and forward the original document to your lender for retention.

01206 500181 to reach our residential property solicitors.