Remortgaging

What is remortgaging?

Remortgaging involves taking out a new mortgage on a property you already own. You can do this to replace your existing mortgage, or to borrow money against a property.

In October 2018 alone, £9.2 billion was spent on remortgaging completed in the UK. If done properly, it can save you a great deal of money.

Why should I remortgage?

There are many reasons you may wish to remortgage your home, including:

• To raise money
  Are you earning more than you were when you first took out your mortgage? Or has the value of your home risen? If so, then you may be able to increase your mortgage. Homeowners have been known to use the money they receive to cover a child’s university fees, or pay for a wedding.
• To save money
  If you're paying your lender's standard variable rate (SVR), it's likely they can offer a better rate and more flexibility on other products they have available. If they don’t, you may want to consider switching your mortgage to another lender. This may be financially beneficial even if you need to pay early repayment charges from your existing lender.
• To pay off your debts 
  If you are struggling to repay a car loan or credit cards, remortgaging can allow you to consolidate these debts. This is particularly useful if your existing loans attract higher rates of interest than that of a mortgage.

Why might I not wish to consider remortgaging my home?

The reasons you may not wish to remortgage your home include – but are not limited to:

• If you have a low credit rating, the best deals may not be available to you.
• You may end up subject to early repayment charges that are too expensive.
• You risk losing your home if you can’t keep up the monthly repayments.
• You could increase the overall cost of your mortgage if you lengthen its term.

What is involved in the remortgage process?

1. Your mortgage lender will stipulate that you find a solicitor. You must then advise your legal team of the lender’s requirements.
2. Your lender will make an offer to remortgage the same as it would for a standard mortgage. Your solicitor will check title documents, obtaining office copies from the Land Registry.
3. Your solicitor will carry out a number of searches on the property. This will include access rights over the property, mining privileges, and any other issues that could affect the value of the property.
4. The mortgage deeds are drawn up and signed by you. Your solicitor must register the mortgage with the Land Registry.

I would like to remortgage my home, what should I do?

Remortgaging is not something you should ever do without a lot of prior consideration, so it's a good idea to seek legal advice at an early stage.

First4Lawyers can ensure that your remortgage goes smoothly and that all the legalities are taken care of.

Whether you're looking to benefit from a new rate, or you want to release some of the money tied up in your property, make contact with us.