Understanding the remortgaging process is essential before getting started. There are 8 key steps to getting a remortgage deal:
1. You will need to complete an application
Upon deciding to switch and upon finding the best remortgage deal, you will of course have to complete a mortgage application as you would need to should you be buying a property. Your mortgage lender will carry out a credit-check on you and expect you to submit specific documentation to support your application, like, payslips, bank statements and proof of your identity.
2. Check the fees that you will have to pay
When you fill in your mortgage application, you are going to have to pay a valuation fee unless of course it is free. On the other hand, your mortgage lender might refund your fee upon completion, depending on the deal you choose. You may also have to pay fees related to arrangement, booking, application or completion. Moreover, you may have to pay a higher lending charge should you be borrowing a high percentage of your property's value.
3. The mortgage offer
Given that the mortgage lender agrees to lend to you, it will forward you the mortgage offer and a key facts illustration (KFI) which highlights the advantages and disadvantages of your chosen mortgage. If you are satisfied with the mortgage offer, you need to sign it and return it. You may change your mind as you are not bound by the offer; should you do so you will lose any non-refundable fees you have paid.
4. Legal work
Certain mortgage lenders use a select panel of solicitors and licensed conveyancers regularly from which you can choose. Alternatively, you can select to appoint your own solicitor or licensed conveyancer; that party will represent both you and the mortgage lender.
The solicitor or licensed conveyancer will request your present mortgage lender to send the title deeds as well as a redemption figure. This figure includes the amount left to pay on your mortgage as well as fees and penalties. They will undertake all necessary searches like the local authority search.
5. Setting the completion date
A date will then be set for completion of the remortgage.
6. Signing the mortgage deed
You will then be requested to sign the mortgage deed.
7. The report on title
Your solicitor will then submit a report on title to the mortgage lender to confirm you have received the proper title to the property and that it is safe for the lender to lend.
8. Requesting Funds
The solicitor will then request the funds from the new mortgage lender and, on the day of completion, will forward these to your existing lender. Should you have borrowed extra funds, the solicitor will then release them to you on or just after completion.
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