Remortgaging can be a difficult process, but the end result is almost always rewarding. Whether it’s a new home or just releasing a chunk of cash from your property, remortgaging is a common solution to a lot of problems. But the conveyancing process can seem overwhelming if you don’t know what’s coming – especially as it is slightly different from your typical mortgage conveyancing one. So today we’re going to run through the 10 steps to remortgaging conveyancing, so you know what to expect at every stage.
ID Checks
The first thing your conveyancer will ask for is proof of ID. While the lender might have done this with you already, your conveyancer will also need to check your ID so that they can comply with their own regulations, as well as the anti-money laundering laws. It’s quick and painless – thankfully!
Review Your Existing Mortgage
Next, they’ll collect the details of your current mortgage for review. The main thing they are looking for here is a redemption statement. This is the document that will tell them the amount still outstanding on the mortgage, and whether there are any early redemption or early exit fees in place that they need to know about on the mortgage.
Check Leasehold Terms
If your property is leasehold, then the conveyancer will need to check the terms of the lease and the term remaining on it. This is so that they know it’s compliant with the new lender, or new mortgage’s requirements. They will also contact your landlord or building management company to get information and notify them about both the existing and the new mortgage you’re putting in place.
Property Searches
With a remortgage, there is usually slightly less risk than with a standard mortgage. This means that some lenders are happy with taking out indemnity insurance that protects them during the conveyancing process while a remortgage is happening. In this case, you don’t need to worry about property searches. But ifn some cases your new lender might require searches on the property, which can slow the process down, but does mean you get a clearer view of your property and any potential issues. We recently wrote a blog about conveyancing searches in detail, which you can read about here.
Review Property Valuation
Your new mortgage lender will do an independent valuation of your property to decide how much it’s worth. They will usually provide you with a copy of the valuation within the offer, and send a copy to your conveyancer too.
Check the Terms
At this stage, your conveyancer will check through all of the fine print and T&Cs on the mortgage offer (you know, the bits you don’t normally read?) and raise any issues with you and the lender.
Sign the Remortgage Offer
Once you’re happy with the terms of your remortgage and everyone’s given you the green light, your conveyancer will present you with a new mortgage deed to sign, along with any other documents required by your new lender. You should return these as quickly as possible to keep the process moving along.
Completion
On the day the funds are received from your new mortgage, your conveyancer will use this money to pay off your existing mortgage.
Send Remaining Funds
If there are any funds left over once the existing mortgage is paid, these will be sent back to you.
Registering the Changes with the Land Registry
Once all of that has gone through and the confirmation is received that your old mortgage is paid, your conveyancer will contact the Land Registry to let them know a remortgage has taken place and will send proof of this to your new lender.
All in all, this process can be done in as little as 4-8 weeks. That’s because it’s much simpler than a standard sale, and you will need to already have a mortgage in place before the end of the existing one’s term.
We know the conveyancing process can be confusing, but with the right support, it can be straightforward. At Hudson Conveyancers we are specialists in residential conveyancing, so you can be sure you’re working with a conveyancer who knows what’s going on. If you’re looking to remortgage your property but don’t know where to start, just get in touch with the team today and book your free consultation.
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