Remortgage
Increasing numbers of householders are deciding to remortgage their property
for a number of reasons including:
1. To find a cheaper mortgage deal by shopping around.
2. To consolidate existing debts.
3. To release equity from their property for the purpose of home
improvements or personal spending.
In this modern, more economy-aware society, and with the competitive
mortgage products on offer, people are constantly looking for better
value for money from their lenders. Remortgaging can either be with
the same lender (whereby a different package is taken out) or with a
different lender. Each lender may provide a different package to suit
individual needs such as including payment of your legal fees.
Contrary to many people’s perception of remortgaging, a remortgage is not
simply a “top-up loan”. What actually happens is that one loan is repaid
by paying it off with a new loan which will be either for the same amount
or for a greater amount, depending on which of the reasons stated above
the remortgage is taken out for.
The process of carrying out a remortgage is perhaps more complicated
than first thought. To give you some insight into the process, the steps
involved are explained briefly below. NRBS carries out a large number
of remortgage transactions for clients and is very experienced in this field:-
- Once you have identified which mortgage package is suitable for
your requirements (this is either done independently by your own research
or with the assistance of qualified mortgage advisor) you would contact
a solicitor and instruct them to act on your behalf in respect of your
remortgage.
- Your new lender will ask for your solicitor’s details so that
they can correspond directly with them. It is usual that the lender
contacts your solicitor to request that they also represent the bank
in the transaction.
- Using your existing mortgage account number, your solicitor will
write to your existing lender and request release of your title deeds which
your lender will be holding in their deeds’ safe for the duration of your
loan. Your existing lender will send the title deeds to your solicitor.
- If your solicitor didn’t purchase the property for you then a
detailed examination of title is required.
- Several searches will require to be carried out as follows:
a.A Search over your property in the land registers to confirm that
you are the legal owner and to ensure that there are no other Secured loans
over the property.
b.A Search over you as house owner in the personal registers to ensure
that no creditors have raised an action against you.
c.A coal report (this will not normally be required if you are
remortgaging with the same lender)
d.A Property Enquiry Certificate (this will not normally be
required if you are remortgaging with the same lender)
- Your solicitor will then draft the Discharge of your lender’s
existing Standard Security which will require to be signed by your existing
lender and they will prepare a new Standard Security in favour of your new
mortgage lender, providing them with Security over the property should you
default in your monthly mortgage payments. The Standard Security will require
to be signed by you.
- The funds are released to your solicitor on an appointed day and
your existing loan will be paid off before the excess, if there is any,
is sent to you.
- The Discharge and the Standard Security will then be sent to
the Registers of Scotland for registration. This is the final stage of
the remortgage.
Please contact NRBS now for all your remortgage requirements.