There are various reasons why you may need to remortgage your property. Your current deal may have come to an end, your home’s value may have gone up, or you may want better money borrowing terms.
Understanding the Remortgaging Process
A remortgage changes your existing mortgage product to another for the same property. If you are taking a new mortgage from the same lender, it may be considered a product transfer that requires no new legal work.
Residential conveyancing applies when you are switching to a different lender. Switching lenders will require a conveyancer to carry out checks and process the transfer of ownership.
Unlike the initial process of buying a property, a conveyancing process requires less time and can be completed within three weeks.
Documents to Prepare before Approaching a Conveyancer
Once you have found a conveyancer and have ensured that their business is on the lender’s panel of approved conveyancers, you will have to collect the documents they need to work for you.
These documents prove your identity and that you can pay off the mortgage. They also provide proof that the of your funds are not from criminal activity. These documents include the following:
Proof of Identification
This usually includes your passport or driving license and proof of address documents such as your council tax bill or utility bills. These will be checked through an online ID checking service.
Proof of Income Sources
These documents prevent money laundering by checking the source of funds you are using as the deposit for the mortgage. The documents you need will depend on your income source, such as:
- Savings: You may need bank statements showing the accumulated funds over time.
- Property Sale: You will need a copy of the sale completion statement, a bank statement showing the receipt of funds, and the name of the conveyancer who handled the sale.
- Pension: You can show a letter of confirmation from your pension fund manager.
- Inheritance: You need a confirmation from the executors of the will, which indicates how much you were left with and a copy of the bank statement showing the receipt of these funds.
- Sales of Investments: You will need documents that certify the transaction and a copy of the bank statement showing the receipt of these funds.
The Rest of the Remortgaging Process
Once these documents are ready, the conveyancer can help you with the subsequent procedures:
- Your current mortgage provider will provide the mortgage certificate with the outstanding amount
- The new lender will issue a formal remortgage offer
- Local authority searches or taking indemnity insurance
- Bankruptcy checks to ensure you are not bankrupt
- Certificate title to the new lender
- Completing the process where the conveyancer receives the money from the new lender and pays the outstanding amount on the previous mortgage. If you increase your loan, the surplus of this amount will be given to you.
- The conveyancer updates the registry to show the new charge with the title deeds at the Land Registry. This process may take several months.
Conclusion
There are various reasons why you may need to remortgage your property. If you are taking a new mortgage from the same lender, you may need no new legal work for this process. However, if you switch to a different lender, you need quality conveyancing services to ensure a smooth process.
Are you looking for a reliable conveyancer in Manchester? We at Conveyancing Expert deliver excellent and efficient legal advice and service. Get a free quote today!