Residential Property –
What is Involved? -Remortgage
What is a Remortgage?

Sometimes referred to as refinancing, a remortgage takes place where one mortgage is paid off with proceeds from a replacement mortgage.


Why Remortgage?

Just as with any other services – for example internet access, electricity and gas or banking – you may find that you could get a more appropriate deal on your mortgage than you are getting.  This might be to get a more favourable interest rate from a different lender, to extend the term of your mortgage or to release some of the equity in your property – for example by using a secured loan to raise money.


Just switching from one type of mortgage to another but still with the same lender does not usually lead to the need for a remortgage – it normally involves switching lenders.


What is Involved?

Usually simpler than a sale or purchase, a remortgage will still involve an investigation of the title to your property because the new lender will want to be sure that they are getting a good security for the loan to you.


The steps are:

  • We will take your instructions including details of your present mortgage and where your documents are kept if that lender does not have them. We are also obliged by law to ask for evidence of your identity so that we can comply with the strict money laundering duties the law places upon us.

  • We will find out how much is outstanding on your current mortgage and contact the new lender to get them to forward to us details of your new mortgage.  Usually we act for the new lender.

  • Next, we will carry out searches to ensure there are no issues affecting your property that could prejudice the interests of the new lender. We may ask you to pay for these in advance.

  • Once we have received your mortgage offer from the new lender, we will make sure it is suitable for you, check the title to the property and then ask you to sign the mortgage deed.

  • Once everything has been signed, we will complete the re-mortgage, pay off your previous mortgage out of the money from the new mortgage and then either send you any balance or ask you to pay us a balance if you are reducing the size of your mortgage. Note that in the event that a sum is due from you, then this, together with the Land Registry fee and other disbursements must be paid to us before we can complete the remortgage.