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Residential Conveyancing: Re-Mortgaging

Reasons to choose Wilson Browne

What is a re-mortgage?

In simple terms, taking out a new mortgage on a property you already own, perhaps for the first time, or to replace an existing mortgage.

Reasons to re-mortgage.

There are many reasons to consider a re-mortgage including:

  • Getting a better deal – make sure you consider any early repayment penalties on your current mortgage when doing this;
  • Switching to a fixed rate;
  • To borrow more – this could be for home improvements or maybe a new car – the lender will want to know the reason why!
  • To consolidate debts;
  • More flexibility – for example, a lender may allow you to overpay or take a break;
  • A change in circumstances such as the breakdown of a relationship.

It may not always be right for you – for example your existing rate may be competitive or the early repayment penalties will outweigh the benefit of re-mortgaging, so consider this carefully.

In most cases, unless you stay with your existing lender and it is simply a “product transfer” it will be necessary for a conveyancer to be involved in your re-mortgage: why?

  • Your new lender will want to ensure that the title to the property is “good and marketable” before they proceed – a conveyancer will investigate the title to the property on behalf of the new lender in a similar way to if you were purchasing;
  • Any existing mortgage will need to be redeemed (paid off) and the conveyancer will attend to this following receipt of the new mortgage advance;
  • There are sometimes additional points to consider such as the need to comply with a restriction on the register requiring the consent of a third party to enable the transaction to proceed.

How much are the legal fees?

More and more lenders are offering re-mortgage clients incentives in the form of either:

  • free legal fees with their own Solicitor or,
  • a sum of money, cashback towards legal fees

Free legal fees…perfect? Not always: check that the package on offer is in fact, free and whether there are ‘strings attached’ as anything out of the ordinary may result in having to pay additional fees. Often firms are appointed via their lender’s panel and they may not be local to you.

If you are considering re-mortgaging speak to our Residential Conveyancing Team.