Q: I am considering re-mortgaging; do I need legal services to do this?
A: The short answer is yes.
However, there are different reasons for remortgaging and as such there will be varying levels of legal services required.
- Moving mortgage for a better rate – whilst the interest rates are currently low, and the Bank of England are not showing signs of increasing the interest rate, we cannot predict the future. If you are currently on your lender’s standard variable rate then it is highly likely that you could save money on their repayments by moving to a fixed or a discounted mortgage deal which will in most circumstances be significantly lower.
- Changing mortgage details – if you are considering remortgaging because you are adding or removing a partner from the mortgage, then you will need to consult a solicitor to ensure all the relevant paperwork is completed accurately. Any changes of ownership should be carefully considered and we can provide expert advise on the remortgage and the transfer of equity that will also take place.
- Increasing the amount borrowed – this may be for renovations on your property, to release equity generally or you may be looking for an increase to buy out a partner in the house. Again it is highly recommended that you seek specialist legal advice so that all avenues are considered and the best way forward is found. Whilst taking money out of the property may seem like a good short term solution, over the longer term you will typically end up paying more in total than other lending solutions.
A Conveyancing lawyer would review your current mortgage contract and advise on the legal aspects and any early repayment charges. They would be able to provide you with details of independent financial advisors and handle the legal transfer including moving the title deeds to the new provider. They also act on behalf of the mortgage company in respect of registering the new mortgage and approving the legal title for the property. In most cases the lender will require you to pay for that service, though it will be included within the fee quoted to you.