Do I need a solicitor to remortgage?

Many homeowners may want to remortgage for a number of reasons, from removing a joint owner to reducing their monthly repayments.

But remortgaging can be a long and complicated process, and it's really important to get it right. That's why seeking support and guidance from an experienced solicitor is essential. Not only do you legally need one to carry out checks and searches, it's also really important to have proper advice throughout the entire process.

In this article, we'll take you through why you need a solicitor to remortgage.

What is a remortgage?

A remortgage refers to applying for a new mortgage with a different mortgage lender, without moving out of your current home.

It's often confused with borrowing more money from your current mortgage lender, but this isn't the same thing. The remortgaging process will usually take between one and two months. If you decide to remortgage with the same lender, it's often a quicker process.

Why remortgage?

Generally, the main reason a person wants to remortgage is to reduce their monthly repayments. Other reasons include to find a lower interest rate or more competitive product, consolidate short term debts into mortgage repayments, or to release equity to pay for another property or rental investment.

Do I need a solicitor to remortgage?

There are some cases where you don't need a solicitor to remortgage. For example, if you're just getting an advance (borrowing more from your existing lender with your existing mortgage deal), there aren't any legal charges involved in this process, which means a solicitor isn't needed.

A product transfer, (which refers to remortgaging with your current lender by moving from your current deal to a new one), also has no need for a solicitor as it doesn't involve any extra legal work.

However, many homeowners will need a solicitor to remortgage. For example, you will need a solicitor if you want to:

• Remove an owner from your mortgage, for example if you go through a divorce or if a co-owner moves out, or if you want to be the sole landlord of the property.
• Add a new owner to the mortgage. This is classed as an ownership change or equity transfer, so a solicitor is needed to amend the deeds.

Which solicitor should I use when remortgaging?

Many lenders (though not all) work with conveyancing solicitors and so will include a free legal package in their remortgage deal. This means their chosen conveyancing solicitor will cover any legal requirements as part of the remortgaging.

You usually won't have much of a say in choosing a different lender if the legal package is a free service. But it is important to check if this is actually free; if it's not, you may be able to choose your own conveyancing solicitor to find a better deal.

It's often recommended to use a mortgage broker who will help find the best deal to suit your specific needs. It may be an extra fee in the short term, but it can help you save money by finding the best mortgage early on, rather than making a poor choice that could cause serious issues later down the line.

Remortgaging fees

Conveyancing fees cost anywhere between £300 and £1000, with an extra £30 to £910 for Land Registry charges. Most lenders will cover the legal fees on remortgages themselves, but any charges will need to be paid upfront as they can't be added onto the new mortgage deal.

Average remortgaging legal fees cost between £850 and £1500, but costs may vary depending on a number of factors, including:

• Any complications with transfer of equity,
• The value of the remortgage product.
• The nature of the buyout (whether it's to buy out an ex partner or previous joint owner).
• How long it takes for the lender documentation becomes available.
• The nature of the property searches you or your lender need to make.

Other searches may include a bankruptcy search for £2 and a priority search for £3. Issuing an official title copy will be an additional charge of £3 to £12.

What does your conveyancing solicitor do during the remortgage process?

So, why do we need remortgaging solicitors? They do a lot of things as part of the remortgage process, from property searches and leasehold checks to valuations and ID checks.

Read more about conveyancing searches here.

Your remortgage solicitor will also get a redemption statement which gives details of how much you owe on your current mortgage, as well as any other other exit fees or early repayment charges due.

Checks and searches

Your remortgage solicitor will carry out ID checks to protect against money laundering and bankruptcy searches to ensure you've never been declared bankrupt. They'll carry out a leasehold check to ensure the lease terms and time left on the lease comply with the new mortgage lender's requirements.

They'll also carry out a priority search at the Land Registry to ensure nothing has changed on the property deed since the remortgage process started.

If your new lender requests a property search before deciding whether or not they'll lend on a property, a remortgage solicitor will conduct one for you. Your new lender will also carry out a property valuation and issue a formal mortgage offer to both you and your solicitor.

A solicitor will be able to check the fine print of your mortgage offer, ensuring you understand all the terms and raising any issues that you may have with the new lender. They'll also witness your signature.

Completion day

On completion day, your solicitor will receive the mortgage funds from your new lender and then pay off your old mortgage as well as any fees before sending any remaining money to you.

Once your old lender has confirmed they've received the funds and discharged their mortgage, your remortgage solicitor will then inform the Land Registry that a new mortgage has taken place. They'll also update the legal title for your home by registering the new mortgage deed.

Legal advice and support

And of course, one of the most important things a solicitor will do is offer your professional legal advice and support based on your individual needs. They'll have expert knowledge of the process and be able to advise you on your best options, as well as any concerns you may have.

For example, they'll be able to examine the terms and conditions of your new mortgage deal so you have a complete understanding of what it involves, allowing you to make an informed decision about your remortgage.

What do you need to do?

Photo ID

You'll need to provide photo ID, as well as an up-to-date (dated within the last three months) proof of address. This is so the conveyancing solicitor can verify the identity of each person named on the mortgage.

Proof of funds

You need to show a source of funds which would be where the money is coming from to make the repayment fees. This is usually three months of bank statements showing you have the money in your account.

Origin of funds

This would prove to the lenders how you’re earning the money. For example, if the money is sourced from your salary, you'd need to give three months' worth of payslips.

Another example could be a property sale, so you'd have to show the completion statement, as well as the bank statement to show the funds were put into your bank account.

Summary: Get a solicitor!

In most cases, if you want to get a remortgage, you're going to have to use a conveyancing solicitor. Even if it wasn't a legal requirement to have a solicitor, it's always better to have one on board to ensure you're doing everything right.

But there's lots of legal work involved with a remortgage that you won't be able to do yourself, from sending the redemption statement and liaising with the Land Registry to changing the property deeds and managing legal documents.

You might be worried about the fees that come with a remortgage solicitor, especially on top of other charges like valuation fees, a title deeds release fee, or even an early repayment charge if you're trying to buy someone out of a house. But fortunately, most lenders will include a conveyancing solicitor as part of their services at no extra cost.

If you're thinking about releasing equity and remortgaging your home, a property valuation is an important first step. Use our instant Online Valuation Tool today to find out how much your home is worth.