How does remortgaging work? Conveyancing and Property
Firstly, ask your current lender for a closing balance so that you can see how much you will need to borrow when remortgaging.
If you are moving to a new lender, instruct a solicitor to draw up the mortgage deed and transfer the title of the property. Some mortgage lenders encourage you to use their nominated legal representative, but this person is acting for the mortgage lender, not you. It is advisable to instruct a reputable residential property solicitor who you trust to act in your best interests and provide independent advice.
Once your new lender is happy with all your documentation – bank statements, utility bills, ID and so on – they will give you a mortgage in principle, which sets out how much they are prepared to lend you.
A valuation then takes place to confirm that the property is worth the amount you are borrowing and, providing it is, you will receive your mortgage offer. Your solicitor will draw down the mortgage funds from the new lender to pay off the old mortgage and register the mortgage holder’s details with the Land Registry.
For advice about remortgaging, contact our conveyancing and property team.