• Role of a Solicitor: While not always mandatory, solicitors provide essential security and legality in most remortgaging situations, especially when changes in ownership are involved.
• Benefits of a Solicitor: Even if you're not borrowing more or moving, solicitors handle the legal paperwork, negotiate on your behalf, and ensure smooth ownership transfers.
• Remortgaging Process: The conveyancing process involves several steps, including identity checks, reviewing your mortgage, conducting property searches, and updating the Land Registry.
• DIY Limitations: You can't entirely bypass a solicitor unless it's a straightforward product transfer or rate change. Legal assistance is crucial for changes in ownership and when conducting property searches.
• Choosing a Solicitor: Opt for a specialist with experience in remortgaging. Compare options to find the best deal, even if your lender offers in-house conveyancing services.
• Solicitors' Fees: Fees vary based on the remortgage amount, typically ranging from £400 to £600 plus VAT across the UK. Be aware of additional costs such as deeds release, valuation, and arrangement fees. Our fee’s are only £350 + Vat.
• Adding Legal Fees: Some lenders cover legal fees, but this may affect the interest rate. Always check the terms of your remortgage offer.
• Conveyancing Duration: The process usually takes one to two months, so start early if your current deal is nearing expiration.
Remortgaging your home allows you to take out a new mortgage and borrow more money against your property. Homeowners often do this to release equity after a higher property valuation (usually after a few years of paying down an existing mortgage), when their circumstances change or they want a better mortgage deal.
But do you need to talk to a conveyancing solicitor to help you through the process?
In this article we’re going to explain when you might require legal aid, if you need a solicitor to remortgage, and how professionals like the TBI team can help.
You won’t always need a conveyancing solicitor when remortgaging your property. However, most situations require it. Professionals can provide extra security and legality, ensuring you and the lender get the paperwork right.
For example, you must use a solicitor if any changes of ownership will occur. Legal professionals check the deed and ensure ownership rights protect all parties. Without this process, lenders may not lend, and property transfers could be invalid.
You can still benefit from solicitors even if you aren’t borrowing more or moving. Counsels can take care of the legal aspects of the property transfer for you and deal with the paperwork on your behalf, preventing worry and freeing you up to focus on other things.
Conveyancing solicitors can also negotiate on your behalf. Sometimes, solicitors can secure a better deal or suggest a higher borrowing amount. All things that you would likely be unable to do, without the help of a professional.
Finally, solicitors can help you transfer ownership to a new party. Doing this successfully requires following the proper process and considering all parties. (For example, you might want to remortgage with your new spouse).
If you’ve ever wondered what conveyancing is, you might be shocked to see how much time the entire process can take. Here’s a list of the remortgage conveyancing process (and what solicitors can help you do):
1. Check identifications – These checks ensure solicitors can comply with the UK government's “know your customer” regulations.
2. Review mortgage situation – Solicitors will look at your existing mortgage, including the outstanding balance, early entry/exit fees, and so on
3. Check leasehold terms – Solicitors see how much longer the property has on its lease if leasehold (and if it needs renewing)
4. Conduct property searches – Conveyancers run various searches to determine flood and fire risk, etc.
5. Double-check the property valuation – Solicitors ensure the property valuation is realistic and warrants the remortgage (house prices can go up and down)
6. Ensure the remortgage offer – Conveyancers check the lender isn’t including any unfair terms
7. Sign the remortgage offer – Professionals ensure you are happy with the mortgage documents and deeds.
8. Complete the remortgage – Solicitors take existing funds to pay off the old mortgage and provide you with any existing funds
9. Make changes to the Land Registry – Conveyancers ensure you are the sole and exclusive owner of the property (and avoid scams that could change these entries)
No: you can’t cut out the solicitor and take a DIY approach unless it is a “product transfer” or moving to a new rate. If you are doing anything else, you will need a solicitor.
For example, it becomes a change in ownership and comes with all the usual legal requirements if you add someone to a mortgage (a friend or partner). The same applies if you are taking someone off the mortgage. You transfer equity (or ownership) in these cases, making it a legal issue.
You also require solicitors in any process that requires searches. Lenders may request these when:
• You remortgage with a new lender
• You are using a mortgage product with a high loan-to-value (LTV) ratio
• There are oddities or complexities relating to the title deed
Fortunately, our conveyancing solicitors are experts when it comes to helping with remortgaging and equity release. Our team will ensure the paperwork is completed, in the correct way, saving you the stress, worry and headache. We provide free quotes and offer portals where you can track your conveyancing case from the comfort of your home. We can also transfer funds from your new lender and ensure you pay off your existing mortgage within the time limit.
When it comes to remortgaging, you need a specialist. We offer a first-class conveyancing service and are one of the largest in the region. We can help with buying or selling property in Hartlepool, Stockton, Wynyard, Durham, Middlesbrough, Newcastle, Sunderland, Billingham... or in fact anywhere across England and Wales!
We believe in setting out exactly what we will do from the beginning and keeping you, the client, regularly informed. By phone, e-mail, or SMS text, we understand the importance of regular communication to give you the peace of mind that your transaction is running smoothly.
We deliver in-depth expertise at affordable prices while streamlining the entire process so you don’t have to worry about anything being missed.
Solicitors charge various fees for remortgaging to cover their costs. But how much are you likely to pay? Usually, the amount you pay depends on the value of the remortgage – the higher the amount, the higher the fee. Most borrowers with remortgages under £250,000 pay under £400 + VAT. Larger mortgages up to £750,000 may require £600 + VAT or more.
At TBI – our solicitor fee’s for remortgaging are just £350 + VAT, making us a very affordable option. You can view our conveyancing pricing for further info – or contact us.
Note that you pay other fees (not associated with the solicitor) including:
• Deeds release fee – a payment to get your lender to send your solicitor relevant deed-related paperwork (sometimes this charge won’t apply)
• Valuation fee – a fee charged by some lenders for mortgage valuations (however, they will usually cover this cost)
• Application fee – a booking fee that secures the new deal with the lender
• Arrangement fees – more fees for administering your remortgage, designing the rate, and settling on an agreed-upon lending amount
Lenders will usually cover legal fees attached to mortgages. However, this practice is not guaranteed. Therefore, don’t assume every lender will cover your legal fees. Check to see if the one you want does. If a lender does offer to cover legal fees, it may increase the interest rate. Therefore, always check the terms of your remortgage offer. You may end up paying more in interest.
If you aren’t sure, ask the lender about the legal fees they charge. Alternatively, get the solicitor to recommend a lender. Often, they work with partners to secure commissions for borrowing products.
The best solicitors are those operating online with established connections to lenders. These can provide you with various low-cost options that avoid paying upfront fees.
You can use the mortgage lender’s conveyancing solicitor if you want. These professionals are usually free and competent. However, you should still shop around for a better deal. You may find your overall costs including legal fees are lower when going elsewhere.
Sometimes, lenders won’t work with in-house or partner conveyances at all (though this is rare). In this situation, shop around and look for the best option. Find conveyancers with experience handling remortgage-related issues in the UK.
Conveyancing solicitors must perform several tasks when remortgaging in the proper sequence. This work ensures everything remains legal and above board.
Their most critical tasks include:
• Checking that you are who you say you are
• Ensuring you have the proper legal documents (such as the title deed) to prove ownership of the property
• Conducting various property searches to ensure it is safe for habitation and unlikely to be the victim of a disaster (i.e. flooding)
• Completing Land Registry searches to ensure there are no issues with the property’s deed
• Discerning the value of the property compared to its last valuation when you took out the original mortgage (to determine how much you can borrow against it)
• Performing various final checks to ensure there are no liens against the property or bankruptcy rulings
• Registering changes to the property with the Land Registry
• Obtaining your signature to sign off their work
Much of this work is paper-based, but it is essential. You could jeopardise your ownership of the property without it.
Conveyancing for remortgaging takes one to two months – slightly less than a conventional first-time or original mortgage. Therefore, start planning now if your current deal expires soon.
We already mentioned most of the fees you are liable to pay above. However, sometimes you may pay extras, depending on your situation.
For example, most lenders pay mortgage and remortgage brokerage fees (and bundle them into the interest rate you pay). However, you may have to pay broker fees directly on rare occasions.
Exit fees from your current lender are another concern. You may have to pay a fixed amount to leave your current mortgage deal (as compensation to the lender for failing to finish the agreed term).
Finally, some lenders charge a “mortgage booking fee.” These let you “reserve” a specific interest rate if it is liable to change.
At TBI, we can help you with remortgaging and equity release. No matter if you want to get a better deal, borrow more, or deal with changing personal circumstances. Contact any of our North East branches today, Hartlepool, Stockton, Barnard Castle or Wynyard.
