People are motivated to remortgage for a variety of reasons. It may be that you wish to capitalise on the equity you’ve built in your property or you might just wish to switch due to repayment rates on your current mortgage. In all scenarios you will need to instruct a solicitor. This is to ensure that the process is completed to a legally satisfactory level, much like it was when you purchased your property in the first place.
The process of remortgaging should be quicker than that which you went through when buying your home. This is because many of the inquiries and investigations will have been completed already in the former process. There are, however, still a number of important steps.
Step One – Identity Checks & Money Laundering Regulations
The first step after you instruct a solicitor will be for them to perform the necessary identity checks in order to satisfy money laundering regulations. Additionally, your remortgage solicitor will need details about your existing mortgage in order to access your deeds.
Step Two – Checking Deeds
Your solicitor will apply to your current mortgage lender for the deeds to the property. They will also check the details stored with the Land Registry relating to the property title.
Step Three – Checking Search Results
Like the searches that were carried out when you bought your property these will look for any planned works to be carried out in the area or if any environmental factors are cause for concern – such as a flood risk. This step might not be required when remortgaging and will be depend on your mortgage providers requirements.
Step Four – Mortgage Offer
Once all the checks are completed your mortgage provider will produce a mortgage offer to your solicitor. This will be checked to ensure that the conditions are met, and that the property has been accurately valued.
The offer will be discussed with you and you will be made aware of all elements of the contract to ensure you are happy to proceed.
Step Five – Signing and Completion
After you’re happy your solicitor will arrange for you to sign your contract and set a date for completion. Final checks will be made with the Land Registry and funds will be requested so that you can pay off your existing mortgage.
Step Six – After Completion
When your new mortgage has completed it will need to be registered with the Land Registry. This must take place within two months of the date of completion and requires evidence that your previous mortgage has been paid off.
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