Yes, you’ll usually need a solicitor or licensed conveyancer if you’re remortgaging with a new lender. They’ll deal with the legal work involved in replacing your existing mortgage, liaise with both lenders and make sure the new mortgage is properly registered. If you’re simply switching products with your current lender, known as a product transfer, you may not need a solicitor.
There are several reasons you might consider remortgaging, including:
- Switching to a fixed rate deal, with an interest rate that is set for a specified period of time
- Switching to a discounted mortgage, where the repayments are discounted by a certain percentage below the lender’s standard variable rate for a set period
- Switching to a tracker mortgage, where the interest rate tracks the Bank of England base rate for a set period
- Borrowing more money, for example, to pay for work to the property
- Reducing the amount you are borrowing
- Changing from an interest-only mortgage to a repayment mortgage or vice versa
- Changing the length of your mortgage term
Unless you are staying with your existing lender, you will need to instruct a solicitor to deal with your remortgage. This is because your new lender will need due diligence work carried out to establish that the property is good security for their loan.
If you are transferring your property, either from your sole name into joint names or from joint names to your sole name, your solicitor can also deal with this at the same time as the remortgage.
How does remortgaging work? What are the steps?
Once you’ve decided to remortgage, you can instruct a solicitor to deal with the legal work. Instructing your solicitor early means you can provide their details to your new lender, allowing the mortgage offer and relevant documents to be sent directly to them once they’re available.
You’ll be given the initial forms for completion, including a property information form.
If you ask us to represent you, we will verify your identity, which is a legal requirement for both your solicitor and your mortgage lender.
We will obtain your title deeds and ask the Land Registry to supply an up-to-date copy of the legal title to your property.
Your new lender may want searches carried out, which we will do, or they may be happy to have indemnity insurance put in place instead, which we can arrange where necessary.
We will ask your existing lender to provide a redemption statement to give you an idea of the amount they will need to pay off your current mortgage. You should be aware that an early repayment charge may apply if you repay your existing mortgage before your current deal ends.
Once we receive your new mortgage offer, we will go through the conditions with you to check that you are happy with them. You can then sign the mortgage deed in readiness for completion.
When we have all of the information needed by your new lender, we will report to them on your property and completion can be arranged.
We will obtain a redemption statement from your existing lender calculated to the date of completion and let you have a breakdown of the amount to be paid to you or, alternatively, the amount we will need from you in cleared funds in order to complete.
On the day of completion, we will arrange for your existing mortgage to be redeemed and account to you for any balance.
Once your old lender redeems your mortgage with them, we will arrange for the Land Registry to remove this from the register and ask them to register your new mortgage in its place.
How Much Does It Cost to Remortgage?
The cost of remortgaging will depend on your existing mortgage, your new deal and the legal work required. It’s worth looking at the total cost of switching before deciding whether a new mortgage deal will save you money.
Costs to check can include:
- Early repayment charges: Your existing lender may charge a fee if you leave your current mortgage deal before it ends.
- Mortgage arrangement or product fees: Your new lender may charge an arrangement, booking or application fee for the new mortgage.
- Valuation fees: Some lenders will charge for valuing your property as part of the mortgage application.
- Legal fees: LPL offers a fixed legal fee of £245 + VAT for remortgage conveyancing. Additional costs may apply depending on the circumstances of your remortgage.
- Search and Land Registry fees: Searches may be required by your lender, alongside HM Land Registry fees for registering the new mortgage.
- Broker fees: If you use a mortgage broker, check whether they charge a fee for arranging your new deal.
Looking at these costs alongside the interest rate and monthly repayments can give you a clearer picture of the overall cost of your new mortgage.
Our guide to solicitor mortgage fees explains how legal fees differ from the charges set by your lender.
Are a Lender’s Free Legals Worth Taking?
Some lenders offer free legal services as part of a remortgage deal. If your remortgage is straightforward, using your lender’s appointed conveyancer can help keep the upfront cost of switching mortgages down.
Before accepting free legals, check what the service includes and whether you could face additional fees if extra legal work is needed. You’ll also usually need to use the conveyancer appointed by the lender rather than choosing your own.
If your remortgage involves additional legal work, or you’d prefer to choose your own conveyancer, instructing a remortgage solicitor separately may be worth considering. At LPL, you’ll have a dedicated conveyancer handling the legal work and keeping you updated as your remortgage progresses.
Common Remortgaging Mistakes to Avoid
A remortgage can involve several costs, checks and deadlines, so planning ahead can help you avoid unnecessary delays or expenses. Some common mistakes to look out for include:
Leaving It Until the Last Minute
Arranging a new mortgage and completing the legal work can take time. Starting your search before your current deal ends gives you more time to compare your options, make an application and progress the legal work.
Check when your existing deal ends and whether an early repayment charge applies before deciding when your new mortgage should complete.
Looking at the Interest Rate Alone
A lower interest rate doesn’t always tell you the full cost of switching. Arrangement fees, valuation costs, early repayment charges and legal costs can all affect how much you could save.
Compare the overall cost of the new mortgage with your existing deal before making a decision.
Not Checking Your Credit Record
Your credit history can affect the mortgage options available to you. Before applying for a mortgage, check the information held by the main credit reference agencies and ask for any errors to be corrected.
It can also be sensible to avoid making unnecessary applications for new credit shortly before applying for your new mortgage.
Not Preparing Your Paperwork
Your new lender will need documents to process your application, so having them ready can help prevent avoidable delays. These may include proof of identity, proof of address and evidence of your income.
If you’re remortgaging a leasehold property, additional information may be required about the lease, buildings insurance, service charges and the management company.
Automatically Staying With Your Existing Lender
Staying with your current lender may be convenient, but it’s worth looking at the mortgage options available to you before deciding what to do.
Compare the rates, fees, mortgage terms and any early repayment charges involved so you can make a decision based on your circumstances.
Remortgage FAQs
The remortgage process can vary depending on your current mortgage, new lender and circumstances. Here are answers to some common questions about timings, legal work and getting your remortgage underway.
When Should I Start the Remortgage Process?
It can be worth exploring your options a few months before your current mortgage deal ends. This gives you time to compare deals, make your application and complete the legal work. Check whether an early repayment charge applies before deciding when your remortgage should complete.
How Long Does a Remortgage Take?
The legal work involved in a remortgage can typically take around one to two months, although timescales will vary. You’ll also need to allow time for your new lender to process your application and issue the mortgage offer.
What Does a Solicitor Do When Remortgaging?
Your solicitor will check the legal title to your property, carry out any required searches, deal with your existing and new lenders, arrange repayment of your existing mortgage and register the new mortgage with HM Land Registry.
How Do I Start a Remortgage?
Once you’ve found a mortgage deal that suits your circumstances, you can apply to the lender and instruct your solicitor. Starting the legal process early means your solicitor can begin the necessary checks and receive the mortgage offer directly from your lender when it’s ready.
Speak to Our Remortgage Solicitors
If you’re planning to remortgage, our experienced property lawyers can handle the legal work and keep you updated throughout the process. We’ll work with you and your lender to progress your remortgage and make each stage clear and easy to understand.
Find out more about our remortgage solicitor service, or speak to our team on 0333 3055 189 or email info@lpropertylawyers.co.uk.
