A Conveyancing Solicitor Briefly Describes The Remortgage Process

Firstly we will discuss about the procedure of Remortgage. When a client’s mortgage deal is coming to an end, they may want to shop around for a new product - this is known as a remortgage. Staying with the current lender after the end of the agreed term of the client’s mortgage will be a matter for negotiations with the mortgage lender. If the existing mortgage lender is willing to offer a rate that is relatively eye-catching, the client may not want to bother remortgaging. If the client, however, has a lot of equity in his property then he may well be able to remortgage onto a more attractive interest rate and even release some of the equity in the property. Now you may be wondering what is ‘equity’, equity is the difference between the market value of the property and the value of the mortgage against the property. For example if your property is worth £250,000 and you have a mortgage of £100,000 against; the property the equity in the property is £150,000. However when you go to remortgage your property you will not be able to realise all of the equity in the property.

Conveyancing solicitors are now very vary of mortgage fraud which is particularly prevalent in the London property market. These fraudsters are laundering money, stealing peoples’ identity and using conveyancing solicitors as a tool in their criminal activities. Conveyancing solicitors are now taking extra precaution to make sure they know their clients and are confident that the client that they are dealing with is genuine. Hence when you go for a remortgage do not be upset if your conveyancing solicitor asks you for proof of name, address and evidence of source of funds. They are not suspecting you but these are measure deployed generally to protect you and the rest of the public.

Once the conveyancing solicitor is happy with the ID documents provided he will proceed to ensure that all the new lender’s conditions are met and the new lender will be able to obtain a secure main charge against the property. Sometimes a property may have two or three charges on it and this means the conveyancing solicitor conducting the remortgage would need to redeem each and every charge on the property or agree with all the lenders concerned the order of ranking of the charges. This is when a remortgage can become complex and more costly.

By: Ittaman Pattat

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