Remortgage in Ipswich, Colchester & London
Remortgaging is when you replace your current mortgage deal with another. This can be as simple as changing the terms of your existing mortgage with your current lender (which lenders sometimes offer at the expiry of your current fixed interest period) or it can mean changing lenders all together.
The reasons that people tend to remortgage are varied, but common reasons are:
- A lender is offering a better deal;
- You have experienced a change of circumstances (such as a divorce or a bereavement); or
- You would like to release equity in the property
Very often, when you are remortgaging to the same lender, there are very few formalities and some lenders will give you a new deal without the involvement of a solicitor.
If you are switching lenders, the requirements are likely to be more stringent and the process will in many ways feel similar to when you first purchased the property. For example, the lender will require a valuation, searches and will expect your solicitor to undertake adequate due diligence on the property to ensure its suitability as security for their loan.
Interest Rates – Is now a good time to remortgage?
Banks are still releasing information as to how it impacts current and future mortgages. As solicitors, Attwells cannot offer financial advice. However, now is arguably a good time to obtain advice from a financial expert or mortgage broker to see if you can save money.
Lenders are starting to announce cheaper rates and deals and these are expected to improve within the next few weeks especially as the market slows due to the impact of the Coronavirus. Therefore, considering a fixed term mortgage is arguably wise as you can maintain your low interest rate for longer. However, any savings will greatly depend on your own personal circumstances.
Early Repayment Charges – Avoid the Trap!
If you are thinking of re-mortgaging do watch out for the “Early Repayment Charge” trap. It is extremely common for your existing lender to charge a considerable fee if you leave your mortgage before the expiry of the initial fixed-interest period. You should check your existing Mortgage Offer to ensure that you will not be caught by the early repayment charge and if you will, think very carefully about whether a remortgage is the right thing for you. If your reason for remortgages is to release equity, there may be other financial products available to you (such as Second Charge Mortgages) that may be more suitable. Though you should always the advice of a properly qualified financial adviser before making your decision.
What different types of mortgages are available?
Fixed Term Mortgage - If you have a fixed term mortgage your repayments will not change during the fixed period. However you may be charged an early repayment fee if you change lenders before your term is up.
Standard Variable Rate Mortgages - If you have a standard variable rate mortgage your payments will reduce or increase depending on the interest rate. Therefore, at present you should see a reduction in your payments however this is down to the lender’s discretion.
Tracker Mortgages - These are connected to the Bank of England’s base rate plus a set percentage. Therefore similar to standard variable rate mortgages your mortgage can reduce in cost or increase.
Use Your Cashback to Cover our Legal Fees
Attwells have produced a special promotional fee for its re-mortgage service so as to ensure that its price equals the £500 cashback provided by most lenders for their solicitors fees.
This special offer enables our clients to use their mortgage cashback to pay their legal fees.
The price that you have been quoted to carry out your re-mortgage transaction is a fixed price to carry out a standard re-mortgage which has no added elements such as a redemption of a help to buy mortgage, a management company or additional legal work that you would like us to undertake on your behalf such as a Declaration of Trust.
How long will it take?
The average re-mortgage takes 3-4 weeks to concluded after your new mortgage offer has been issued.
Leasehold transactions typically take 2-3 weeks longer due the information that has to be collected from the Freeholder or Managing agent.
When do I pay?
Attwells solicitors will ask you for a payment on account to cover any third party disbursements to cover the cost of your searches or a copy of your title documents this will be up to £50 unless there are fees payable in advance to your freeholder for any information that we require from them.
Attwells legal fees will only become payable upon successfully completing your re-mortgage.
Who will be responsible for my work?
Attwells have a large property team with a wealth of experience, our property team includes Solicitors, Legal Executives, Licenced Conveyancers, Trainee Solicitors, Paralegals and administration staff who may all undertake work on your behalf. All work undertaken by unqualified staff is supervised by either a Solicitor, Legal Executive or Licenced Conveyancer.
The 10 legal steps to remortgaging:
From start to finish the whole process takes an average of 4 weeks
- Identification checks
- Purchasing your current legal title documents from the Land Registry, checking them on behalf of your lender and yourself
- Removing old mortgages, paying monies owed and settling any fees
- Checking the lease, where applicable, to make sure it complies with the mortgage terms. Additionally, Attwells can solve issues with the leasehold title, or lease, if required
- Carrying out legal searches on the property to identify any issues and resolve them. Some lenders allow insurance policies to be taken out, instead of full searches which can be quicker and cheaper. These options will be explained during the process
- Reviewing the mortgage offer’s terms and conditions and highlighting any problems for you or the lender
- Helping you sign the mortgage documents correctly
- Completing final checks for bankruptcy searches which are required by your mortgage provider
- Finalising the re-mortgage for you. On the day of completion, funds will be received from the lender. Any fees and old mortgages will be deducted then the final balance will be sent to you
- Registering the new mortgage with the Land Registry. This will update your legal title to include the new mortgage charge.
Why choose Attwells...
For Our Speed and Diligence: In a competitive market the speed and diligence of your lawyer is key. With Attwells, you can rest assured that no matter what the transaction entails, your lawyers will be proactive in pushing your matter forward to an efficient and satisfactory conclusion.
For Our Competitive Fixed Fees: Attwells offer competitive fixed fees on all of our Property Finance services, so that from day one, you will know how much your legal costs will affect your bottom line. This is all part of our commitment to transparent and fair pricing
For Our Proactive Communication: Is there anything more frustrating than not knowing the status of your matter? Or worse still, not being able to get in contact with your lawyer for an answer? At Attwells we understand that communication with the client is critical, which is why we will give you regular updates without being prompted. You will always be given the direct line to your lawyer, so you can spend your day on what you want, rather than waiting on hold.
We use cutting edge Case Management Software to ensure that staff absences (either through holiday or unplanned) are always covered by colleagues within the department, so you can be sure that your matter will not be delayed by matters outside of your control.
For Our Expertise: We have completed hundreds of Second Charge Mortgages over the years so we can say with some confidence that your matter is unlikely to be anything we haven’t seen and dealt with many, many times before.
Attwells offer a fixed fee for re-mortgages. If you are re-mortgaging less than £500,000, we offer a fixed fee of £500. Some lenders offer cashback incentives which are usually around £500 allowing you to use your cashback to pay for legal fees.