The Remortgage Conveyancing Process Explained

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The Remortgage Conveyancing Process Explained

Remortgaging involves moving from one mortgage provider to another. Even if you’re not changing your residence, you’ll still need to appoint a conveyancer when remortgaging. Your remortgage conveyancer will handle the legal aspects of the process, making necessary updates to title deeds and the land registry.

 

The Remortgage Conveyancing Process Explained

When you’re remortgaging with your current provider, often referred to as a product transfer, there’s no need to hire a conveyancer. This is because all the mortgage details required by the Land Registry remain unchanged. However, if you decide to switch mortgage providers, you will need to engage a conveyancer. Their role involves handling the necessary legal work to register your new mortgage against the legal title of your house with the Land Registry.

Remortgage Proccess.

Here’s a simplified explanation of the 10 steps in the remortgage conveyancing process:

Step 1 – ID Checks: Your conveyancer initiates the process by verifying your identity. Although your lender might have performed similar checks, your conveyancer ensures compliance with their own regulations and anti-money laundering laws.

Step 2 – Review your existing mortgage: Gathering intricate details about your current mortgage is crucial. This involves obtaining a redemption statement that outlines the outstanding amount, potential early redemption or exit fees, and when these fees expire.

Step 3 – Check leasehold terms (if relevant): For leasehold properties, your conveyancer scrutinizes the terms of the lease and its remaining duration. This step ensures alignment with the requirements of your new lender. They also communicate with your landlord or management company to gather essential information and inform them about your existing and new mortgage.

Step 4 – Property searches: Depending on your new lender’s preference, your conveyancer may either take out indemnity insurance or conduct property searches. Although indemnity insurance is quicker, searches provide more detailed information. Your conveyancer manages this process, informing you of any associated costs.

Step 5 – Review the property valuation: Your new mortgage lender assesses the value of your property, providing a valuation report. This report is typically shared with you and your conveyancer simultaneously.

Step 6 – Check the terms of the mortgage offer: Your conveyancer meticulously reviews the terms and conditions outlined in the mortgage offer. They address any concerns by communicating with both you and the mortgage lender.

Step 7 – Sign the remortgage offer: Once you are satisfied with the terms, your conveyancer requires you to sign the new mortgage deed and other relevant documents promptly. This swift action helps prevent unnecessary delays.

Step 8 – Completion: On the day funds are received from your new mortgage, your conveyancer uses these funds to pay off your existing mortgage. This marks a significant milestone in the remortgage process.

Step 9 – Send remaining funds: If there are any surplus funds after settling outstanding balances, your conveyancer disburses this balance to you promptly.

Step 10 – Registering the changes with the Land Registry: With confirmation that your old mortgage has been paid off, your conveyancer updates the Land Registry to reflect the remortgage. They also provide proof of this transaction to your new lender.

Timeline: The remortgage process typically spans 4-8 weeks. To ensure a seamless transition, it’s advisable to start reviewing new mortgage options and conveyancers approximately six months before your current mortgage term concludes.

Fees: Engaging a conveyancer for remortgaging incurs legal fees ranging from £200-£400. Additional fees may include ID verification, telegraphic transfer, land registry fees, and search fees, such as HMLR (Her Majesty’s Land Registry) and bankruptcy searches. These fees contribute to the comprehensive legal services provided during the remortgage process.