Whether you’re remortgaging to get a better deal, to consolidate debts or to release some equity in your home, we’re here to answer the question: When you’ll need a conveyancing solicitor when you Remortgage.
The main reason for Remortgaging is to help reduce your monthly payments, but you need to make sure your savings outweigh any early redemption or arrangement fees. However, did you also know you could have to pay legal fees as well?
Short answer – no! When you Remortgage, chances are you won’t always need a Solicitor. Although, if you’re just getting an advanced mortgage deal, such as borrowing more on your current deal then there are no legal charges involved in the transaction, only charges associated with the increasing loan and repayments is when you may need a Solicitor.
However, if you Remortgage with your current lender, by simply moving to a new rate or mortgage deal, this is considered a “Product Transfer” and requires no additional legal work, says Stephen Kerrigan, Doncaster based Mortgage Advisor.
Well good news, mostly all lenders will include a free legal package in their Remortgage deals, which mean their chosen solicitor will cover the legal requirements. However, do check if this is actually free! If your chosen lender’s legal package isn’t free, ask your Mortgage Advisor if able to shop around.
There are a couple of situations where you will need to appoint a solicitor, such as:
Looking to add a friend or partner when you Remortgage, you’ll need to get a solicitor as you are changing the ownership of the property. This is also known as a ‘transfer of equity’. You will need solicitors to amend the deeds for you and help draw up paperwork specifying how you will own the property. You can get quote from conveyancing solicitors that will do this for you here. Or, as in the above point this means that the ownership of the property is changing so a solicitor will be needed to amend the deeds.
Your chosen mortgage lender may want you to use their chosen solicitor, however, only do this if its free, as any part of the Remortgage deal you will have little choice. But if you are paying for a Solicitor then you have the right to shop around for a better deal.
The process of remortgaging could take one to two months, but could be more depending on the current climate and Lockdown in England. It’s usually quicker if you Remortgage with the same lender. So, if you are thinking of Remortgaging before your current deal expires, leave at least two months.