How to remortgage 8 steps to remortgaging
There are a number of steps before you can sign the new mortgage deed
1. Complete an application
Once you’ve decided to switch, get an idea of the best remortgage rates by looking at the tables offered by Which? Mortgage Advisers. Your lender will credit-check you and require you to submit certain documentation to support your application, such as bank statements, payslips and proof of identity. You may want to seek out professional advice prior to selecting your deal, to ensure that it is the best available for you. The Which? Group offers an independent mortgage advice service that looks at every mortgage from every available lender. To search for an alternative broker, visit Unbiased.co.uk.
2. Check your fees
At the time of your application, you'll need to pay a valuation fee unless this free. Alternatively, your lender may refund the fee after completion, depending on the deal. You may also have to pay an arrangement, booking, application or completion fee and a higher lending charge if you're borrowing a high proportion of the value of your property.
3. The mortgage offer
Provided that the lender is happy to lend to you, it will issue you with a mortgage offer and a key facts illustration (KFI) showing you the pros and cons of the mortgage you've chosen. If you're happy with the offer, you'll need to sign and return it. You're not bound by the offer so could pull out if you change your mind. If you do, you will lose any non-refundable fees you had to pay. One of the main reasons for remortgaging is to get a better deal than you are already on; visit the mortgage calculators offered by Which? Mortgage Advisers to find out what your repayments would be at different interest rates and how much money you could potentially save on your mortgage.
4. The legal work
Some lenders will have a panel of solicitors and licensed conveyancers they use on a regular basis who you can choose from. Otherwise you can choose to appoint your own solicitor or licensed conveyancer. Whoever you appoint will act for both you and the lender.
The solicitor or licensed conveyancer will ask your existing lender to send the title deeds and a redemption figure. This figure will include the amount left to pay on your mortgage plus any fees and penalties. They'll also carry out the necessary searches such as a local authority search.
5. Completion date set
A date will be set for completion of the remortgage.
6. Signing the mortgage deed
You'll then be asked to sign the mortgage deed.
7. Report on title
Your solicitor will submit a report on title to the lender to confirm that you've got proper title to the property and that it's safe for it to lend.
8. Requesting the funds
The solicitor will request the funds from the new lender and, on the day of completion, will send these to your existing lender. If you've borrowed extra funds, the solicitor will release these to you on or shortly after completion.
