What is the process of remortgaging a property?

The first step in understanding the process of remortgaging is to understand the legal definition of remortgaging. Remortgaging means moving your existing mortgage to a new lender whilst staying in the same property. 

In this article we will explain, what remortgaging is, the reasoning someone may wish to remortgage, the time length involved with remortgaging and how our expert conveyancing team can help you. 

What is a remortgage?

A remortgage is a process which involves switching your mortgage to a different lender whilst staying in your current home. This means that your new mortgage will replace your old one. 

Why do people remortgage property?

There are several reasons why you may wish to remortgage a property. These include:

• Reducing your bills
• Your current mortgage is coming to an end
• Looking for better deals that your current lender cannot offer
• To avoid increasing interest rates
• The value of your home has increased
• You wish to borrow more money against your property
• Wishing to raise money for home improvements

How does remortgaging work?

Understanding the process of remortgaging your property is key, so here are the four steps you will need to follow:

1. Gain an Agreement in Principle – You are able to get an Agreement In Principle with many lenders online, known as an Online Agreement in Principle (AIP). Getting this agreement allows you to find out if your chosen lender is willing to lend you the amount you need, without a full credit check. 
2. Considering the costs – The objective behind remortgaging a property is to put you in a better financial situation, therefore you need to consider if your new lender will charge you any of the following fees: application Fees (charges to setup a new mortgage), valuation fee (to confirm the value of your property) & Solicitors fees (to manage the transfer of your mortgage).
3. Applying for a new mortgage – Once you have your Agreement in Principle you can then apply for your remortgage. Your new application will involve a hard credit check therefore you will be required to provide multiple documents to confirm your income, credit commitments and loans and details on your current mortgage. 
4. Completing your remortgage – the new lender will carry out credit checks on you and will have the property valued. You will need a solicitor/conveyancer to handle the transfer of your mortgage.

How can our Residential Property team help those in the process of remortgaging?

Our Residential Property team can assist with the re-mortgaging process by reviewing the terms of the new mortgage, advising on any legal implications, and ensuring that the necessary documentation is in order. We can also liaise with the lender on your behalf and facilitate the transfer of funds.

With our expertise and experience in the field of Residential Property, we can help you navigate the complex process of re-mortgaging and ensure that your interests are protected throughout the process. If you wish to discuss a re-mortgage or require any further information don’t hesitate to contact our team Doncaster Conveyancing team on 01302 341 414 or our Sheffield Conveyancing team on 0114 272 1884. Alternatively, you can fill out our online enquiry form.