HOUSE CONVEYANCING - REMORTGAGING

The process of changing from one borrower to another is called re-mortgaging and usually requires the assistance of a house conveyancing solicitor to carry out the financial transaction for the bank and for the borrower. Building societies and banks that lend money secured on property all charge different rates and have different deals on offer. It may be that after borrowing money to buy a house or property there is a different arrangement offered by another lender that either suits the borrowers needs better or is cheaper.

There is however another category of re-mortgaging that doesn’t involve changing lender and this occurs when an existing borrower wishes to increase the amount of the loan and to use the money released for some other purpose. This type of re-mortgage usually occurs when property prices have risen with inflation leaving a substantial equity in the property which can then be used as security for a further loan. It may however just be that the borrower has paid off a large part of the mortgage and wishes to release cash.

There are some fees that may have to be paid to facilitate a re-mortgage which include the cost of a chartered surveyor to asses the latest value of the land or property and the house conveyancing solicitors fees for dealing with the legal work on your behalf. You will also have to pay the arrangement fees charged by your new mortgage lender.

It is interesting to note that some of the best deals only apply to new customers however the threat of paying off the loan and moving to another lender is sometimes sufficient to persuade the existing lender to offer better terms and this is also referred to as a re-mortgage.

The benefits of re-morgaging through a house conveyancing solicitor can be startling. If you are able to arrange a deal with a lender on a £100,000 loan that is a better rate by only one half of one percent, the saving each month will be over £30 which translates to well over £10,000 saving over a 25 year mortgage when the earned interest is taken into account.

One matter which needs serious consideration before any re-mortgage is whether or not there are any financial penalties imposed by the existing lender if the loan is repaid earlier than the full term period. This information should be contained on the original mortgage documentation however the mortgage provider should give the relevant information over the phone upon provision of the account details.

All of our solicitors in England and Wales are accredited by the Law Society as land and property specialists and will provide detailed and accurate information on re-mortgaging. Our network of solicitors are based out of London and can keep overheads low allowing them to give extremely competitive quotes whilst still ensuring that your legal work is carried out by experienced solicitors. If you would like to speak to a specialist with no further obligation just call the quotation line or complete and send the contact form and a solicitor will phone to give you free advice.