| A remortgage is much less hassle than buying a new | | | | remortgaging than when initially buying a property as |
| home because the ownership of the property is | | | | in most cases the following charges are either |
| already registered in your name. Many homeowners | | | | irrelevant or are lower than when the mortgage was |
| elect to change to a different mortgage with their | | | | first arranged. For example: 1. There is no liability for |
| exiting lender and in this case the process is even | | | | Stamp duty when remortgaging (unless a transfer of |
| simpler. If the borrower does decide to switch to a | | | | title is involved). 2. The legal fees will be lower as the |
| new lender, there are still fewer hurdles than | | | | process is simpler than for purchasing. 3. It is also |
| arranging a brand new mortgage. All lenders will | | | | highly unlikely that you will require a homebuyer's |
| require a valuation to guarantee the value of the | | | | report or survey, especially if you remortgaging not |
| property is sufficient for them to lend on – | | | | too long after the original mortgage was agreed. |
| obviously in a falling market such as we have now | | | | There can be other costs laid out below but on |
| this can affect homeowners who borrowed at or | | | | some remortgage deals the new or existing lender |
| near to the maximum level. Property prices can | | | | will often meet some or all of these: • Broker |
| change quickly and are often dependent on local as | | | | fees. • Lender's arrangement charge. • Early |
| well as national issues so that, even if you're | | | | redemption fees. • Valuation fees. • Legal |
| remortgaging after 12 months there can still be | | | | costs. • Lender's arrangement charge. • Sealing |
| significant change in market value of the property. | | | | fees from the former lender. Conveyancing must be |
| There is a requirement to make an application to the | | | | organised and lenders often select firms of solicitors |
| lender (new or existing) as when buying a property. | | | | with two or more partners. During this process local |
| This application will need to be underwritten by the | | | | searches will be arranged and the reports and title will |
| lender – in all circumstances they will require | | | | be sent to the new lender. Lastly, the solicitor’s |
| evidence that the current mortgage has been | | | | duty is to guarantee the former lender is repaid |
| maintained and that payments have been received. | | | | when the new lender releases the new mortgage |
| At this point the prospective remortgager will issue | | | | funds. Any surplus will be released to the borrower |
| the borrower with a quote. There are fewer costs in | | | | after completion. |