Remortgaging
is much simpler than buying a new home because the deeds
of the property are already registered in your name. If you
choose to change to a different deal with your existing lender,
the process is even simpler.
And if you do choose to switch to a new lender,
only a few steps are involved. If you choose to remortgage
with Omega, even these few steps involve
minimal hassle, since we help manage the process by liaising
with lenders, valuers and solicitors on your behalf.
1. The lender will require a
valuation to ensure the value of your property is sufficient
for them to lend on. Property prices can fluctuate over a short
space of time so that, even if you’re remortgaging a
year after purchase, you could still see a change in your home’s
value.
2. You’ll be required
to make an application to the lender in the same way as when
buying a property. The application has to be underwritten by
the lender, who will require evidence that the loan to date
has been maintained. They’ll then issue you with an offer.
3. Conveyancing work will need
to be carried out, and many lenders will only instruct a firm
of solicitors with two or more partners. During the conveyancing
process, local searches will be conducted and a report and
title will be sent to the new lender.
4. What
are the costs?
Remortgaging can involve less cost
than those incurred when buying a property, since in most
cases the following charges either won’t apply or will
be lower than when you first purchased your mortgage, including:
- stamp duty - you won't be liable for this
at all when remortgaging
- legal fees - solicitor's costs could be lower
than when purchasing the property, since the legal process
is less complex for remortgaging than purchasing
- homebuyer’s report or survey – if
you’ve undertaken a homebuyer’s report or full
structural survey when purchasing the property, you’re
unlikely to need to repeat this exercise when remortgaging
- other costs – other costs will apply
(as below) but on some remortgage deals the new lender will
even meet some or all of these.
When considering whether to switch deals, you’ll
need to bear in mind any early repayment charges that may apply
on your existing deal, and the extent to which (if at all)
these may reduce the potential savings to be gained by remortgaging.
Many of the costs of remortgaging are similar
to those incurred when purchasing a property. These may include:
- early repayment charges (applicable in some
cases)
- lender's arrangement fees
- booking and broker fees
- valuation fees
- legal fees
- mortgage indemnity (in some cases)
- discharge fees from your old lender (often
called a 'sealing fee').
Finally, the solicitor
will ensure your previous lender is repaid when the new lender
releases the new mortgage funds. If you’re borrowing additional
funds, the solicitor Will release these to
you on, or shortly after, completion. |
