Remortgage a Residential Property

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

A remortgage should be a very smooth process. Once you have instructed us and you have notified your lender that we are to represent you, your lender will process your mortgage offer.

Once the offer has completed, the lender will send you your part of the mortgage offer and send the firm Solicitors to copy detailing their instructions.

What is Remortgage?

A remortgage is where you take out a new mortgage on a property you already own – either to replace your existing mortgage or to borrow money against your property.

Around a third of all home loans made in the UK are actually remortgages. Homeowners remortgage for a variety of benefits including:

  • To release equity from a property
  • To consolidate debts
  • To move to a better mortgage rate
  • To save money


Five Reasons to Remortgage

There are a number of reasons that people look to remortgage, and these reasons will naturally then affect which remortgage deals are appealing.

•    To Get a Better Rate

If you’re thinking about remortgaging to get yourself a better interest rate, an alternative mortgage deal may well have a considerable impact on your outgoings. If you’re currently on a fixed rate but the period for this rate is soon ending, it’s understandable that you might want to shop around.

•    Debt Consolidation

Debt consolidation is one of the main reasons that people consider remortgaging. If you’re a homeowner and have multiple debts that you’re struggling to keep on top of, it can be tempting to acquire funds using your home as security, to clear these debts. However, you should always think very carefully before securing borrowing with the property, as this will naturally be at risk if you fail to meet the repayments.

•    Home Improvements

Many people remortgage to gain funds to carry out home improvement work to their property. This is often seen as a sensible option, as any improvements you make to your home may well increase its value in the long term. Spending in this way is, therefore, an investment in your property as you will likely see a return on it at some future date.

•    Changing Financial Situation

Many people, especially in today’s troublesome economic climate, find that they’re simply unable to keep up with their outgoings for whatever reason. Whether you’ve had a change in circumstances due to illness, a job loss or personal reasons, you can easily find yourself in a position where your mortgage payments are just not possible.

If this applies to you, you should ideally speak to your current lender, and see if there are any alternative suggestions that they have. Remortgaging is just one of the options that may be available to you.

•    Equity Release

If your home has risen in value during the period of your mortgage, you may well want to see the benefit of this value through equity release. Remortgaging is one of the ways you can do this, as it can be built into the terms of the deal; however, it basically amounts to further lending on your property, and should therefore not be entered into lightly.

How we can help with Remortgage?

In most cases of remortgaging, and if you are changing to a different lender, the lender will require us to carry out a Local Search. We can submit searches extremely quickly as we use an internet-based system which advises us of the date on which the search will be returned.

Some lenders, however, allow us to take out “search indemnity insurance” which is an insurance policy which covers the lender against any adverse entries which could be revealed on a Local Search. This is a much cheaper option and we will always check with your lender to see if they will accept insurance rather than carrying out a Local Search.

Once the search result has been received and search insurance has been obtained, we can report back to you on your new mortgage offer and send you the appropriate mortgage deed for signature.

When you have returned the mortgage deed to us, we can order a redemption statement from your current lender for the date of completion and provide you with a completion statement.

On the date of completion, we will redeem your current mortgage and send any balance to you. We will then register the new charge over your property and once the Land Registry has completed the registration, we will supply you with a copy of the title deed for your information and send the original to your lender for retention.

Call our Residential Property Solicitors on 01206 500181