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Re-mortgaging

Re-mortgaging is now very common for a variety of reasons.  With interest rates at an all time low this may be a particularly good time to switch your mortgage or choose one of the fixed interest rate schemes that are currently available.  Before re-mortgaging there a number of key points you should consider:

  • You should ensure that there will be no penalty charge payable to your present mortgage lender and that you are tied to them in any way.  A combination of having to pay early repayment penalties to one lender as well as paying fees to a new lender in order to switch can wipe out many of the savings that you could otherwise make.
  • You need to know exactly what the new mortgage is going to cost you and how long any discounts or fixed rates apply for.
Once you have got your new offer of mortgage the legal process is fairly straightforward.  We can carry out the legal checks that your new mortgage lender will want.  We will check exactly how much you need to pay to your old lender on a fixed date to pay off everything that you owe.  On the chosen date we then draw your new mortgage loan from the new lender, pay off the old loan and pay over to you any surplus.

We then have to register the changes at the Land Registry.

It is important to remember that if you have taken out a second loan on the property with a different lender (and these are often arranged in conjunction with home improvements such as window replacements or new conservatories) you may need to pay off that additional borrowing as part of the deal.
 
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