If you are considering switching your mortgage, you may be asking the question, “do I need a solicitor to remortgage?”
Remortgaging can help you secure a better interest rate, release equity, or move to a more suitable mortgage deal. While the process can seem straightforward, there are important legal steps involved, particularly if you are remortgaging with a new lender.
At AFG Law, we regularly assist homeowners through the remortgage process, ensuring everything is handled efficiently and in line with your mortgage lender’s requirements.
What is Remortgaging?
Remortgaging involves replacing your existing mortgage with a new one. This may be with your existing lender or by switching to a different provider.
There are two main types of remortgage:
- Product transfer – staying with your current lender but switching to a new deal
- Remortgaging with a new lender – moving your mortgage to a different lender
The legal work involved will depend on which option you choose.
Do You Always Need a Solicitor to Remortgage?
Whether you need a solicitor depends on the type of remortgage.
Product Transfer
If you are staying with your existing lender and simply switching to a new mortgage deal, you may not need a solicitor. In many cases, this can be completed directly with your lender.
Remortgaging with a New Lender
If you are switching lenders, you will usually need a solicitor or conveyancer. This is because the new mortgage lender will require legal work to be carried out before releasing funds.
This includes checking the property title, dealing with the Land Registry, and ensuring the new mortgage is properly registered.
What Does a Solicitor Do in a Remortgage?
If you instruct a solicitor, they will handle the legal process required to complete the remortgage.
This typically includes:
- Reviewing the formal mortgage offer from your new lender
- Checking the title of your property with the Land Registry
- Obtaining a redemption statement or statement from your current lender
- Ensuring all lender’s requirements are met
- Arranging for the repayment of your existing mortgage
- Receiving the funds from the new lender
- Completing the transaction and registering the new mortgage
This process ensures that the old mortgage is cleared and the new one is correctly recorded.
Why Does the Lender Require a Solicitor when Remortgaging?
Your mortgage lender needs to be confident that their loan is properly secured against your property.
To do this, they require a solicitor to:
- Confirm that you legally own the property
- Check for any issues affecting the title
- Ensure their charge is correctly registered at the Land Registry
These checks are essential before the lender releases the funds from the new lender.
The Remortgage Process Explained
While every transaction is different, the typical remortgage process includes the following steps:
1. Receiving Your Mortgage Offer
Once your application is approved, your lender will issue a formal mortgage offer. This sets out the terms of your new mortgage deal, including the interest rate and repayment terms.
2. Legal Checks
Your solicitor will review the offer and carry out necessary checks, including verifying your identity in line with money laundering regulations.
They may also carry out property searches, although in some remortgage cases these are not required.
3. Redemption of Existing Mortgage
Your solicitor will request a redemption statement or statement from your current lender. This confirms how much is needed to repay your existing mortgage.
4. Completion
On the agreed completion date, your solicitor will use the funds from the new lender to repay the existing mortgage and complete the remortgage.
5. Registration
Finally, your solicitor will register the new mortgage with the Land Registry, ensuring your new lender’s interest is recorded.
Costs of Remortgaging and Legal Considerations
The cost of remortgaging will vary depending on your circumstances. Typical costs may include legal fees, lender arrangement fees, valuation fees, and any early repayment charges on your existing mortgage.
It is also worth noting that some lenders include a free legal package as part of their remortgage deals, which can make the process appear more cost-effective. However, these services are usually provided by a solicitor appointed by the lender rather than one acting independently on your behalf. While this can be suitable for straightforward cases, the service may be more limited and offer less flexibility. If your circumstances are more complex, or if you would prefer tailored advice, you may wish to instruct your own solicitor.
Why Legal Advice is Important
While remortgaging may seem like an administrative process, there are legal and financial considerations to be aware of.
Seeking professional legal advice can help ensure:
- The transaction is completed correctly
- All lender’s requirements are satisfied
- Any potential issues are identified early
- Your interests are protected
This is particularly important if your circumstances are more complex, such as where there are changes to ownership or additional borrowing involved.
When Might the Process Be More Complex?
In some cases, additional legal work may be required.
This can include:
- Adding or removing someone from the mortgage
- Dealing with leasehold properties
- Resolving title issues identified by the Land Registry
- Meeting specific lender’s requirements
In these situations, having an experienced solicitor can help avoid delays and ensure the process runs smoothly.
How AFG Law Can Assist
At AFG Law, our residential property solicitors provide clear, practical support to help you complete the remortgage efficiently.
We can assist with:
- Reviewing your formal mortgage offer
- Ensuring all lender’s requirements are met
- Obtaining a redemption statement from your existing lender
- Managing the repayment of your existing mortgage
- Receiving the funds from the new lender
- Completing the transaction and registering the new mortgage with the Land Registry
We understand that securing the right mortgage deal is important, whether you are looking to reduce your interest rate or release equity.
Our team works proactively to ensure your remortgage is handled smoothly, keeping you informed at every stage.