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Re-mortgaging is the process of switching from your current mortgage deal to a new one. If you are staying with the same lender, this can mean simply changing the terms of your current mortgage, or it can mean switching to a new lender entirely. Whether you are switching lender or not, we would strongly recommend getting the advice of an experienced Property Law Solicitor before making any serious financial decisions related to your property.
Should You Re-mortgage?
There are many reasons you may decide to re-mortgage. A few of the most common are:
- To secure a better deal with a different lender
- To borrow more money, for example to finance home improvements
- Because you have experienced a change of personal circumstances (a separation or divorce)
- To beat an increase in interest rates
Whether re-mortgaging is right for you will depend on several factors. If your new mortgage is with the same lender, the process can often be a very simple case of signing new paperwork, in which case there is little reason not to switch.
If you are moving to a new lender however, the steps you need to take will be much more akin to the process you went through when first buying the property. Your new lender will require a valuation, may require searches and will expect your Solicitor to carry out adequate due diligence on the property.
Re-mortgaging can also involve hidden fees and charges you may not have anticipated. It is common practice, for example, for lenders to charge you a considerable fee if you choose to leave your current deal before the fixed-interest period has fully expired. It is extremely important that you check your contract carefully before making any decision to re-mortgage – consulting a good Property Law Solicitor first will ensure you avoid any nasty surprises.
How Long Does a Re-mortgage Take?
You can expect the re-mortgaging process to take approximately 3-4 weeks from when your new mortgage offer has been issued. If you are staying with the same lender this time will be considerably shorter, whereas if you are re-mortgaging a leasehold property the process may take longer – between 6 weeks and 2 months – as information will also need to be collected from the property’s freeholder.
What We Can Offer You
Whether you want to release equity to finance renovations or would just like to switch to a better deal, our experienced Residential Property team can help you. Our accreditation through the Law Society’s Conveyancing Quality Scheme attests to our expertise in Property Law, and our team have many years of experience in helping homeowners re-mortgage their properties.