Do I Need A Solicitor When Remortgaging?

Posted on by convey_admin

During the early stages of the pandemic, the number of mortgage products available fell sharply to around 50 percent of their previous level. While lenders have started reintroducing products, numbers have not quite returned to ‘normal’ levels yet, so your choice may be limited. Conveyancing Expert bring you all the latest news on remortgaging in 2021.

Remortgaging In 2021- All You Need To Know

Mortgages are generally people’s biggest financial commitment, taking up a large portion of their monthly outgoings. Lenders are more cautious while economic uncertainty continues. Mortgage companies, like other employers, face challenges in maintaining their normal services. As a result, timescales for processing and finalising applications have lengthened and this can mean a delay in receiving funds.

Should I Remortgage?

Making sure you have the best deal is important as it can save you hundreds each month. If you already have a mortgage and are looking to change lender, we can help you through the remortgage conveyancing process.

There are signs of a strong recovery for the remortgaging sector in 2021, as rising house prices boost homeowners’ equity allowing them to benefit from better loan-to-value products.

Why Might I Remortgage?

There are several reasons to think about remortgaging but the main reason is going to be saving money…Maybe your current deal is about to end. Many introductory mortgage offers only last a short time, often two to five years. This is the typical length of time offered on a fixed rate, tracker or discount mortgage. The most common time to remortgage is when this fixed or introductory tracker or discounted rate on your mortgage ends.

  • Mortgage Term Ended: Once your introductory mortgage offer has ended, you will be on the lender’s Standard Variable Rate (SVR). It is unlikely this will be the cheapest option, so remortgaging is going to be something you will have to think about. Your lender may be happy to retain your custom so this should always be your first port of call.
  • Better Rates: If you are tied into an initial deal you might have to pay an early repayment charge of up to  2-5% of your outstanding loan. Regardless of exit fees, the savings can be huge
  • Change Of Personal Circumstances: If your current mortgage is no longer the most appropriate, a different type with different terms might suit you better.
  • Flexibility: The predictability of a fixed-rate remortgage might be more important than low repayments. Or maybe you’re earning more than when you took your mortgage out . Flexible features usually come with a slightly higher interest rate. 
  • Raising Extra Money: Affordability will be reassessed by your lender to make sure you’re not over-stretching your finances.

Early Repayment Charges

Most mortgages have an early repayment charge during the initial special discount period. Early repayment charges are often a percentage of the amount you owe. Some lenders charge a flat rate like 4% whilst others charge a higher percentage the longer you have left on your mortgage.

Check the costs on your mortgage statement, in your terms and conditions or by asking your lender for a redemption statement. This will confirm how much you owe and what fees you need to pay to clear the balance. Conveyancing Expert will help you understand all charges that come with remortgaging your property.

Do I Need A Solicitor When Remortgaging?

It is especially important to employ a conveyancing expert when:

  • Adding Someone To A Mortgage: you will need a solicitor as ownership of the property is changing. This is known as a ‘transfer of equity’. Deeds will have to be amended and paperwork drawn up specifying how you will own the property.
  • Removing Someone From The Mortgage – as above, this means that the ownership of the property is changing so a solicitor will be needed to amend the deeds.

Our expert conveyancing team can answer all your remortgaging queries. Contact us today for a quote.

Mortgage Rates And Availability In 2021

Mortgage Availability has been improving for several months now, providing a boost to both home buyers and remortgagers alike. There are currently more deals on the market than there has been since last March. In fact, the number of mortgages on offer has risen by 42%, with offers of low-deposit 90% deals being a driving factor. 

As for mortgage rates, the increased availability hasn’t made them cheaper. Rates are still rising slightly, with two-year deals continuously on the increase. Saying that however, the speed of the increase is slowing down. Lower rates could be on the horizon.

How Much Can I Borrow?

Lenders used to multiply your income to work out how much you could borrow. It’s all about affordability. Lenders look at a detailed assessment of your income compared to your outgoing and work out how much spare cash you have each month. They take everything into account.

They will require you to have a ‘cushion’ in case mortgage rates rise, and leave you unable to pay. 

Remortgaging If You’re Self-Employed

It’s becoming harder to get a remortgage if you’re self-employed. For example:

  • Self-employed applicants will only be able to borrow up to 60% of a property’s value from Santander.
  • Halifax: self-employed borrowing is limited to 4.49 times annual income. 
  • HSBC: not currently lending to self-employed applicants whose income has been impacted by the recent tightening of COVID-19 rules. Applications will reopen after the lockdown ends. 
  • Nationwide: self-employed applicants can borrow up to 85% LTV. 
  • Natwest: if a self-employed applicant has had a Self-employed Income Support Scheme grant, the proceeds will not be considered as income. 
  • TSB: self-employed applicants can borrow up to 75% LTV. Borrowing is limited to 4.25 times annual income.

You will need at least two years of accounts to prove your income.

This can be done in one of two ways.

  • Business Accounts. Preferably three years worth of accounts — though two can sometimes do. They usually need to be signed off by an accountant.
  • Tax Returns. If you can’t show business accounts, two or three years’ tax returns are the next best option. You’ll be assessed on profits, not turnover. 

Those who have recently become self-employed will simply not be able to remortgage.

Whatever your circumstances, it is always a good idea to keep up with all the latest mortgage information, with Conveyancing Expert, especially if you plan to apply for a mortgage in the near future.

 

155 thoughts on “Do I Need A Solicitor When Remortgaging?”

  43. Thank you for your sharing. I am worried that I lack creative ideas. It is your article that makes me full of hope. Thank you. But, I have a question, can you help me?

  130. http://www.arttree.com.au is Australia Popular Online Art Store. We sell Canvas Prints, Handmade Canvas Oil Paintings, Customer Artwork, Handmade Canvas Portraits. We Offer Year Round Sale and Get Up-to 70 Percent OFF Discount. We give FREE Delivery Australia, Sydney, Melbourne, Brisbane, Adelaide, Hobart and all regional areas. We ship Worldwide at many international locations.

  131. Hey there, You’ve performed an incredible job. I will definitely digg it and in my view suggest to my friends. I am confident they’ll be benefited from this web site.

  132. Interesting post made here. One thing I would like to say is the fact most professional job areas consider the Bachelor’s Degree as the entry level standard for an online college degree. Although Associate College diplomas are a great way to start out, completing your Bachelors presents you with many opportunities to various employment goodies, there are numerous on-line Bachelor Course Programs available by institutions like The University of Phoenix, Intercontinental University Online and Kaplan. Another thing is that many brick and mortar institutions provide Online variations of their qualifications but often for a substantially higher charge than the providers that specialize in online degree plans.

  133. Thanks a lot for sharing this with all of us you actually know what you are talking about! Bookmarked. Kindly also visit my site =). We could have a link exchange contract between us!

  134. Hmm it looks like your blog ate my first comment (it was extremely long) so I guess I’ll just sum it up what I wrote and say, I’m thoroughly enjoying your blog. I as well am an aspiring blog writer but I’m still new to the whole thing. Do you have any tips for newbie blog writers? I’d genuinely appreciate it.

  135. One other thing I would like to talk about is that instead of trying to accommodate all your online degree lessons on days that you complete work (since the majority of people are fatigued when they return), try to receive most of your sessions on the weekends and only one or two courses on weekdays, even if it means taking some time off your weekend. This is fantastic because on the weekends, you will be more rested as well as concentrated upon school work. Thanks a lot for the different recommendations I have learned from your blog site.

  136. Good blog post. Things i would like to make contributions about is that personal computer memory needs to be purchased should your computer is unable to cope with anything you do along with it. One can set up two good old ram boards of 1GB each, in particular, but not certainly one of 1GB and one having 2GB. One should check the car maker’s documentation for the PC to ensure what type of ram is needed.

  137. Hmm it looks like your site ate my first comment (it was extremely long) so I guess I’ll just sum it up what I had written and say, I’m thoroughly enjoying your blog. I as well am an aspiring blog writer but I’m still new to the whole thing. Do you have any points for newbie blog writers? I’d really appreciate it.

  138. I do love the way you have presented this particular issue and it really does give us some fodder for consideration. Nevertheless, coming from everything that I have seen, I simply hope when the responses pack on that men and women remain on issue and don’t get started on a soap box associated with some other news of the day. Still, thank you for this exceptional piece and while I can not go along with this in totality, I respect your point of view.

  139. One other thing to point out is that an online business administration course is designed for individuals to be able to efficiently proceed to bachelor’s degree education. The 90 credit diploma meets the other bachelor college degree requirements and once you earn your associate of arts in BA online, you will have access to the newest technologies in this particular field. Several reasons why students would like to get their associate degree in business is because they’re interested in this area and want to receive the general knowledge necessary prior to jumping into a bachelor college diploma program. Thx for the tips you really provide in your blog.

  140. Hello, you used to write magnificent, but the last few posts have been kinda boring? I miss your tremendous writings. Past few posts are just a bit out of track! come on!

  141. Thanks for your write-up on the travel industry. I might also like to add that if you are one senior thinking about traveling, it is absolutely crucial to buy traveling insurance for elderly people. When traveling, seniors are at greatest risk of having a health emergency. Having the right insurance cover package to your age group can protect your health and provide peace of mind.

  142. I’m amazed by the quality of this content! The author has undoubtedly put a huge amount of effort into researching and arranging the information. It’s refreshing to come across an article that not only offers helpful information but also keeps the readers engaged from start to finish. Kudos to her for making such a remarkable piece!

  143. Hello there, I discovered your site by way of Google at the same time as looking for a comparable topic, your website came up, it appears to be like great. I’ve bookmarked it in my google bookmarks.

  145. I?m not sure where you are getting your information, but great topic. I needs to spend some time learning more or understanding more. Thanks for fantastic info I was looking for this info for my mission.

  146. One thing I’d like to say is the fact that before obtaining more laptop or computer memory, check out the machine within which it can be installed. In the event the machine will be running Windows XP, for instance, the particular memory limit is 3.25GB. Using greater than this would purely constitute a waste. Be sure that one’s mother board can handle the actual upgrade quantity, as well. Great blog post.

  147. I have realized some important things through your website post. One other point I would like to state is that there are various games that you can buy which are designed specifically for preschool age young children. They include pattern recognition, colors, creatures, and forms. These typically focus on familiarization in lieu of memorization. This will keep little children engaged without sensing like they are studying. Thanks

  148. One thing I want to say is the fact car insurance termination is a terrifying experience and if you’re doing the best things being a driver you simply won’t get one. Many people do are sent the notice that they’ve been officially dumped by the insurance company and several have to struggle to get further insurance after a cancellation. Low-priced auto insurance rates are often hard to get from cancellation. Having the main reasons for auto insurance cancellations can help motorists prevent getting rid of in one of the most crucial privileges available. Thanks for the strategies shared via your blog.

  149. I’m not that much of a internet reader to be honest but your blogs really nice, keep it up! I’ll go ahead and bookmark your site to come back down the road. All the best

  151. I have noticed that credit restoration activity ought to be conducted with techniques. If not, you might find yourself damaging your standing. In order to reach your goals in fixing your credit score you have to make sure that from this time you pay any monthly expenses promptly prior to their timetabled date. It really is significant given that by definitely not accomplishing that, all other actions that you will choose to adopt to improve your credit rating will not be useful. Thanks for revealing your ideas.

  152. I have really learned new things by your site. One other thing I would like to say is the fact that newer computer operating systems often allow more memory to get used, but they likewise demand more memory simply to run. If one’s computer is not able to handle far more memory as well as the newest software program requires that storage increase, it is usually the time to buy a new Laptop or computer. Thanks

  153. Many thanks to you for sharing these kinds of wonderful posts. In addition, the best travel along with medical insurance program can often relieve those considerations that come with visiting abroad. A medical crisis can before long become costly and that’s bound to quickly place a financial stress on the family’s finances. Setting up in place the great travel insurance deal prior to leaving is well worth the time and effort. Thanks

  154. Woah! I’m really enjoying the template/theme of this blog. It’s simple, yet effective. A lot of times it’s tough to get that “perfect balance” between user friendliness and visual appearance. I must say you have done a amazing job with this. Additionally, the blog loads extremely quick for me on Safari. Superb Blog!

Leave a Reply

Your email address will not be published. Required fields are marked *

Copyright © 2009-23 Conveyancing Expert All rights Reserved. Registered in England and Wales No.07421084.