Remortgaging is a financial strategy that involves changing your mortgage lender or renegotiating the terms of your existing mortgage. It is a common practice and can offer you lower interest rates, lower monthly repayments, and the ability to release equity from your property.
The following are the steps involved in the legal process of remortgaging:
- We first ensure that we have undertaken the necessary ID checks to ensure compliance with Anti Money-Laundering regulations.
- We will then conduct a thorough title search on the property to confirm that it is free from any disputes or legal encumbrances. This search will also ensure that the property is legally registered with the Land Registry.
- We then obtain information about your current mortgage from your lender and asking for a redemption statement to see the amount outstanding on the mortgage and if there are any fees for exiting the mortgage early.
- If your property is leasehold, we will need to check the terms of your lease to make sure it complies with your new lender’s requirements.
- Your lender may require searches to be carried out on the property. We can arrange this on your behalf and inform you of any fees for this. If the lender is happy to accept indemnity insurance, we can arrange this for you also.
- We will review and report to you on your new mortgage offer and make sure there are no issues. You will also be sent the mortgage deed to sign and have witnessed.
- We will perform a bankruptcy search against you and complete a priority search at Land Registry to make sure that nothing has been, or can be, entered onto the title register before the remortgage can take place.
- We will then provide a certificate of title to the new lender, which confirms that the property is legally registered and that there are no issues with it.
- On the day of completion, we receive the funds from the new lender and arrange for the outstanding balance on the old mortgage to be paid off, ensuring that the borrower is free and clear of any obligations to the previous lender. Any remaining monies will be sent to you.
- Finally, we will register the new mortgage with the Land Registry, creating a legal charge over the property in favour of the new mortgage lender. This ensures that the lender has a legal interest in the property and protects their investment.
It is important to remember that remortgaging can be a complex process, and it is essential to work with a reputable and experienced solicitor who can guide you through the legal requirements and ensure that everything is handled correctly. At ORJ, we have years of experience in handling all remortgage transactions and have the capability of handling complex matters.