If you are reaching the end of a reduced-rate mortgage deal, remortgaging may give you the opportunity to find a better offer than your existing lender’s standard variable rate.
We answer some of the questions we are most frequently asked about remortgaging.
1. Do I need a solicitor to remortgage?
Unless you are staying with your existing lender, you will need a solicitor to deal with your remortgage. They will carry out due diligence work to ensure that the property meets the lender’s criteria.
2. What does a solicitor do on a remortgage?
Your solicitor will need to investigate the legal title, carry out searches, obtain property information from you, and report to the lender on their findings when processing your remortgage.
3. When should I remortgage?
If you are on a fixed-rate, tracker, or discounted rate mortgage, you might want to consider remortgaging a couple of months before the reduced or fixed rate ends.
4. How long does a remortgage take?
The legal work for a remortgage can take one to two months to complete. You will also need to factor in the time your new lender will take to process your application. If they are busy, for example, if they have offered a good deal and have a large number of applicants, it can take weeks for them to issue a mortgage offer. Timescales can vary depending on the complexity of the individual matter.
5. How much does a remortgage cost?
The costs associated with a remortgage include fees for searches, Land Registry, transferring funds, and your new lender’s charges. These generally include:
- Search fees or search indemnity insurance
- Land Registry fee for a copy of the legal title
- Fee for transferring money electronically
- Fees charged by your existing lender, which could include an administration fee
- Mortgage arrangement fees for your new mortgage
- Valuation fee charged by your new lender
- Land Registry fee for registering your new mortgage
For a comprehensive quote, speak to a remortgage solicitor to find out exactly what the costs will be.
6. How can I improve my credit score?
Improving your credit score might give you access to a wider range of potential mortgage offers, making your remortgage options more favourable. You may be able to improve your credit score by:
- Checking your credit score with the main credit agencies used by lenders (Equifax, Experian and Transunion) and contacting them to correct any errors in their records
- Using a credit card regularly, but paying it off each month
- Ensuring that bills are paid when due
- Closing cards that you do not use, including store cards
- Trying not to use more than 30% of the credit available to you
- Making sure you are on the electoral roll
- Closing any accounts held jointly with someone who has a poor credit score
- Not using your credit card at an ATM
- Trying not to take out credit just before you apply for a mortgage
7. How do I start a remortgage?
You will need to select the right deal for your circumstances and contact a remortgage solicitor to start the process once your mortgage offer is confirmed. You can then apply and at the same time contact a remortgage solicitor and ask them to represent you. They will let you have the initial forms for completion so that they can start work as soon as your mortgage offer is confirmed.
Contact us
If you would like to speak to one of our expert property lawyers, ring us on 0333 3055 189 or email us at info@lpropertylawyers.co.uk
