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Latest NewsThursday 13th December 2018
The process of remortgaging and the role of your solicitor.
Remortgaging happens when you change the mortgage you currently have on your property, either by switching it to a new lender, or by moving to a different deal with your existing lender.
The Remortgaging Process Guide explains the role of your solicitor at each stage of remortgaging your home. We hope this helps you to understand the process, and how our expert lawyers can support you at every step of the way.
Reasons why you might want to remortgage
There are several reasons you might want to remortgage your home, including:
Your current deal is coming to an end
When your current mortgage deal ends, you’ll be put on the provider’s standard variable rate – SVR. Before that happens, it’s a good idea to look at what other options may be available and to consider remortgaging to a better deal where that is possible.
You’re concerned about rising interest rates
If you’re on a variable rate mortgage and your payments are increasing because of the Bank of England’s base rate rises, it could be worth remortgaging to a competitive fixed rate deal for your peace of mind. Do check for any early repayment charges for getting out of your mortgage early.
You would like to increase your borrowing
Sometimes homeowners remortgage to release equity from their property. You must make sure you’ve factored in all the fees that come with remortgaging and make sure you’ve looked at other borrowing options before making your decision.
You want to overpay
If you’ve inherited some money or received a bonus, you might want to use it to pay off a chunk of your mortgage early or to increase the monthly payments you make. However, some lenders may not let you do this, or they may only let you increase the payments by a small amount.
Your home’s value has increased
If the value of home has gone up by a significant amount, your loan-to-value figure will have reduced. In this instance you may be able to obtain more competitive mortgage rates, which could mean it’s worth remortgaging. Again, you’ll need to check on any early repayment charges to see whether it’s worth it.
Download the Remortgaging Process Guide HERE.
If you require help or advice regarding the remortgaging of your property, please contact us on 01392 209209.