Firstly, what is a remortgage?
Simply put, a remortgage is when you move your mortgage to a new offer with the same lender, or switch to a new lender in advance of your current mortgage term ending.
Why are remortgages such a hot topic now?
Due to the global economic downturn, increased inflation has caused the Bank of England to increase the base rate to 3.5%. This time last year the rate was only 0.25% and the subsequent series of increases has been reflected in lenders’ mortgage rates. While the number of property transactions has slowed down recently, up to 1.4m mortgages are due to expire this year.
What does this mean for the consumer?
Current mortgage rates already reflect the base rate increase, so it’s those coming to the end of their term that will be the most affected. Anyone remortgaging in 2023 can expect an increase in their monthly payments. So, although it can be tempting to renew a mortgage with the same lender, in this economic climate it’s definitely worth looking at your options across the lender market, so you get the best deal available.
How do you go about remortgaging?
Usually you can begin the remortgaging process about 3 months before your term is about to expire. Start by discussing your options with your mortgage broker or lender. There are also a number of credible independent resources online.
Do you need a conveyancing solicitor for a remortgage?
If you’re planning to renew with the same lender it’s unlikely that you’ll need a conveyancing solicitor. If, however, you’re remortgaging because your circumstances have changed, or because you’re taking out equity, adding someone to the property, borrowing money from your existing lender or changing your mortgage terms, it can be extremely helpful to use a solicitor.
Some lenders offer free legal advice as part of their mortgage terms, but this is often limited to only basic remortgaging and so not appropriate for more complex matters. So working with a spcialist solicitor can be beneficial should you wish to change your mortgage arrangements in any way.
What are the key remortgaging steps if I chose Brevis as my conveyancing solicitors?
Once you’ve chosen your mortgage, we’ll provide you with a quote for our services. You’ll then need to undergo some legally required steps, including an ID check and signing our agreement. You can do this all online, so it’s a quick and easy process.
After submitting your mortgage application to your lender (either directly, or via an independent financial advisor) you’ll receive your Mortgage Offer. Brevis will review the offer document on your behalf and provide a jargon-free report to ensure you understand your rights and the terms you’re agreeing to.
Next we’ll perform a series of checks and tasks to satisfy your lender, as well as obtaining information about your existing mortgage. Once we’ve gathered all the information together, we’ll settle up your existing mortgage and ask you to sign the Mortgage Deed in order to set up your new mortgage.
Finally we’ll submit an application to HM Land Registry to file the updates to your property’s title register.
How can Brevis help?
As a client focused law firm we recognise that remortgaging can be an onerous task that many people leave to the last minute. So we have a quick, online onboarding system that makes the process as easy as possible. And that’s important because if your preferential mortgage term is expiring soon, every day saved can save you money on hiked interest rates!
At Brevis, every client is assigned a personal account manager who gets to work on your remortgage immediately. We don’t charge extra for a speedier service because all our clients receive a priority service as standard.
If you’d like to find out more, please contact us.