Remortgaging is where you pay off your existing mortgage and switch to another lender. You may be able to release equity from your property or simply reduce your monthly payments and interest rate.
You should firstly check the value of your property. If you have more equity than when you last mortgaged your property, you may be able to obtain more favourable mortgage deal in the marketplace. As a rule of thumb, the higher the property value in relation to the mortgage, the more deals may be available to you.
You will need to check the market for what mortgage products are available to you. You can do this by searching online or by consulting a mortgage broker who can search the market for you.
Even though there may be lower rates available, you need to take into account any fees associated with switching and the remaining length of your loan.
Once you have decided to remortgage, Jordans’ conveyancing team can step in to provide the full legal service required to remortgage your property.
We outline below the Jordans conveyancing remortgage process:
Requesting the Title Deeds and a Redemption Statement
Jordans will write to your current mortgage lender and request your title deeds. Most properties are now registered with the land registry and it may be the case that your lender does not hold any deeds. If this is the case, we can get a copy of your title from the land registry. This can be done immediately due to Jordans using the online land registry portal system and this will ensure there is no delay at this stage.
Jordans will then request a redemption statement from your current mortgage lender for budgeting purposes. We need to check that the money you will be obtaining from your new mortgage will fully pay off the old mortgage.
If there is not enough, you would need to pay the difference from you own funds.
Lenders will often add a fee for producing a redemption statement and a deeds production fee to the mortgage balance.
Checking the Title
Jordans will carry out a title check as if we were acting for you as a purchaser. This will include carrying out searches.
There are certain matters that a lender is unlikely to be interested in such as changes to the area that don’t affect the value of the property.
If the property is leasehold, Jordans’ conveyancers will need to check the lease and ask the landlord if the service charges and rent are paid up to date. There may be a cost associated with this charged by the landlord.
Checking the Mortgage Offer
Jordans will check the mortgage offer to see how much you are borrowing and whether there are any conditions attached to the mortgage.
Preparing for Completion
Once all the title checking has been completed Jordans will:
- Request a final redemption statement
- Carry out final searches
- Request the mortgage advance from your new lender
Completion of the Remortgage
On the day of completion we will pay off the existing mortgage with the new mortgage money.
After completion the new mortgage will need to be registered. Jordan’s conveyancers will carry out this process on your behalf and send to you a copy of the new registered title once it is received from the land registry.