Re-mortgaging or mortgage switching moves your mortgage from your existing bank to a new mortgage provider.
Your mortgage is probably your households largest monthly outlay and like all of your household bills it makes good sense to review the market to see if you can get better value from another lender, or pay the same amount each month and reduce the term of your mortgage.
This article will guide you through process of re-mortgaging and how you can go about doing it.
Is it difficult to switch to another lender?
If you have a history or making you monthly mortgage payments it should not be difficult to obtain approval in principle from another lender. We find that it takes time and a lot of
paperwork to get to the point that the new lender will issue the loan approval. It is common that where vulture funds have taken over variable rate mortgates from lenders who have left
the market many of the rates are high, you are probably overpaying and you need to switch.
Once you have decided to move you should contact us to take up your title deeds from your existing lender on accountable trust receipt. Some lenders are taking up to 8 weeks to release the title deeds they hold so the sooner you contact us the better.
We will be certifying the title as a good and marketable title to the new lender and will need to review the title to your property to ensure there is good title. There may be some documentation required from you such as up to date LPT receipts, Architects certification for any construction work carried out since you bought. We can deal with these once we see the title documents.
Approval and Drawdown
Once the loan is approved the bank will issue you with a letter of offer and issue us your solicitors loan pack. Once this arrives we can meet you to sign the loan documents and go
through the terms and conditions of the loan. We can then order your loan cheque from the bank. At this stage you will need to check with the bank that all of their pre-conditions are met. These include house insurance, life insurance, the direct debit mandate for repayment and any other conditions that have to be satisfied prior
to bank releasing the loan cheque. We will then contact your existing lender for a redemption figure on your existing loan so that once the loan cheque arrives we can immediately pay off your existing mortgage,
Registration and Return of deeds
We will then register your new mortgage with the Property Registration Authority and remove the old mortgage from your title deeds. Once this is done we will send back your title deeds to the new bank who will hold them as security until the mortgage is repaid- or you remortgage again, The legal process involved in remortgaging is quite similar to the process involved in buying a property when it comes to the bank documentation and process. It requires a solicitor with solid conveyancing experience to ensure that this process goes smoothly for you.
Should you wish to discuss further, do not hesitate to contact us