The legal process of remortgaging.

Your mortgage is a big commitment. There are many different reasons why you might need to remortgage your home. It may be to free up equity for an extension or to settle a second charge on the property. It could even be to simply secure a better mortgage interest rate.

What do solicitors do when remortgaging?

ID checks – Firstly, your solicitor will need to prove who you are using your proof of ID. Our solicitors do this using 1 form of photo ID and 2 forms to prove your address.

You solicitor will then request a copy of your title deeds to confirm if:

• There are any charges or restrictions on the title that need satisfying
• You are the legal owner of the property

Leasehold checks – A solicitor will check the lease terms and the remaining time left on the lease comply with the new lender’s requirements.

Property searches – your new lender may request searches are carried out before they are prepared to lend on a property.

Valuation – your new lender will value your property and issue a formal mortgage offer to you and your solicitor.

Completion – On the day your solicitor receives the mortgage funds from the new lender, they will then pay off your old mortgage and any fees and send any remaining money to you.

Registering changes with Land Registry – Once your old lender has confirmed they’ve received the money and discharged their mortgage your solicitor will inform the Land Registry that a remortgage has taken place and update the legal title for your home by registering the new mortgage.

Can I remortgage if I have negative equity?

Being in negative equity due to falling property prices means that the property you own is worth less than the amount that is left on your mortgage.

If you suspect your mortgage is in negative equity, the first thing you need to do is arrange for a formal valuation. Then, you will need to compare how much your house is worth with your outstanding mortgage balance to determine the extent of the problem.

How long does it normally take to remortgage?

It’s impossible to say exactly how long it will take to finalise your new deal, as the transaction will depend on how quickly you can provide the required paperwork and how long it takes for your solicitor to complete the application. However, remortgaging is often much easier than applying for an entirely new mortgage.

Our team of expert conveyancers are on hand to help and assist you in the right direction wherever you are based! For more information please contact 01753 486777 or email Kulbir Conner (head of conveyancing) on  kconner@astonbond.co.uk .