Property Remortgage Information Sheet
Remortgaging a property can be a stressful time, and there are a number of procedures that have to be followed. This information sheet will concentrate on the mechanics of the process and will help you understand each step in detail.
Who can remortgage a property?
Anyone who already owns a property and is eligible for a mortgage.
What is the process?
Once we have received your identification documents and money on account, we will obtain a copy of your title documents. If you currently have a mortgage secured on the property, then at this stage we will obtain a redemption figure for information purposes only.
When we receive the mortgage offer, we will let you know whether or not it is necessary to submit a full set of searches. In some circumstances the mortgage lender may accept search insurance as an alternative to submitting the local authority, drainage and mining searches. However, we will be required to submit the environmental search.
We will also review the conditions of your mortgage offer and draw your attention to any unusual or special conditions.
Once we have received the result of any searches and the mortgage offer, we will ask you to make an appointment to come into the office to sign the mortgage documents and to discuss the offer. At this stage we can also discuss a completion date.
Once we have identified a completion date, we will request your mortgage funds. The mortgage lender usually requires five to seven working days’ notice before releasing funds.
If you have a mortgage currently secured on the property, then we will also request a redemption figure (i.e., the final amount owing) for that.
We will undertake the final searches at this stage. The first of these searches is known as the official search and ensures that the title documents have not changed since we received them. The other search is the bankruptcy search against you, which we are obliged to undertake on behalf of the mortgage lender. It is therefore in your interest to inform us at the outset if you are aware of any insolvency issues that affect you.
On completion day we will receive the mortgage advance from your new mortgage lender. We will redeem any existing mortgage by telegraphic transfer. Please continue to make mortgage payments every month as usual until the completion date. Once the mortgage has been redeemed, the mortgage lender will send us confirmation.
On the completion day we will account to you for any balance due to you. We usually send you a cheque, and if there are two of you remortgaging, a cheque will be sent in joint names unless you specifically request otherwise. If you prefer, we can telegraphically transfer the monies. We charge a fee (inclusive of VAT) of £36.00 for this. If you wish us to send the monies in this manner, please ensure we have the following bank details from you:
- The name on the account.
- The name of your bank.
- The sort code and account number
After the completion date, we will apply to the Land Registry to remove any existing mortgage on the property and to register the new mortgage.
Once the Land Registry has registered the mortgage, we will send to you a copy of the updated title to the property.
How long does it take?
From receiving your initial instructions to completion, it usually takes 8 – 12 weeks. This timescale can differ depending on your transaction, and if we believe it will take longer, we will let you know.
How much will it cost?
Each case is different. You will receive a quote dependent on your remortgage. Search prices also differ dependent on the local authority area in which you are buying.
Note: The above is intended as a general overview for your information. It is NOT intended to replace proper legal advice. Each case is different and advice cannot be given without a proper analysis of your own circumstances.
