At its heart, a remortgage should be a straightforward process of repaying your existing mortgage from the proceeds of a mortgage provided by a new provider. However, that description belies the actual process involved. The new mortgage provider requires to obtain a good security or mortgage over your property.
The solicitors working with iconveyancing.scot have market leading processes which have been developed over the previous 25 years to ensure that a straight forward remortgage can be carried out at a price of £349 which includes all of the disbursements. Not only is this an incredibly competitive price but is built around Internet delivery so that your remortgage can be dealt with from the comfort of your living room.
It is important to remember that any matter relating to your existing property which might raise concerns for a mortgage provider requires to be investigated. There are three sources of such issues which may incur additional costs. The transparent approach of iconveyancing.scot means that our legal firms spell out what these problem circumstances might be and the cost of resolving them.
The three “problem” areas are:
An issue arising from your current title: the most common major issue for a person remortgaging is where the names in which the title is currently held do not match the names on the new mortgage offer. In the modern world where relationships are much more fluid this is more common than you would think. So, if you currently own a property in your own name but your new mortgage depends upon the income of both you and your partner, then your new mortgage offer will be in the names of both you and your partner. This means that the title of your property requires to be transferred to the names of you and your partner at the same time as the remortgage is carried out.
Understandably, this involves quite a substantial amount of additional work and consequently cost. This is unavoidable but iconveyancing.scot provide a menu of such costs so you know “upfront” how much the necessary changes will cost.
Other issues arising from your current title include aspects of your existing title which may be problematic or, because of issues with the registration system, do not reflect yet your ownership. These matters need to be investigated and understandably do not fall within the very low standard fee. As in other areas, if this should arise, there is a transparent menu cost of the additional work.
An issue arising from the valuation report: when you approach your new lender for a remortgage, the lender is likely to carry out a valuation of your property. Sometimes, the valuer will make observations to the lender about your property and the lender will make, as a condition of your mortgage, the resolution or investigation into those matters. Where this happens the solicitor dealing with the remortgage needs to resolve those matters before a request can be sent to the lender for your new remortgage funds which will enable your old mortgage to be repaid.
Often such matters may relate to alterations to the property or other physical issues. Where this happens then necessarily there will be additional costs incurred but, as you would expect from iconveyancing.scot, there is a clear list of such costs.
Matters relating to either your old lender or the new lender: even though your application has been approved in principle, your remortgage cannot proceed until your new lender has issued a satisfactory mortgage offer. There can be consequential time delays and nothing can be done until the mortgage offer is received.
If your existing mortgage is subject to an early repayment charge, then normally you would not wish to complete your new remortgage until that early repayment charge has expired. You can choose to ignore that expiry date but then there will be a cost imposed by your previous lender. It is always important to fully take into account the impact of early repayment charges. In addition, while the completing solicitor will make every effort to synchronise the new mortgage with the expiry of the old early repayment charge, for all manner of reasons, that can be challenging to achieve.