Remortgaging is when you change your existing mortgage to a different, better, deal without changing property. It means that you will be using the new mortgage to pay off your current one. A remortgage is not the same as getting a second mortgage or a secured loan, which is where you use your property as security for more finances. It is also not the same as equity release, where you have no or little existing mortgage and which you can use as you wish without having to pay it back until the property is sold.
You may want to remortgage to:
Are there fees to pay to remortgage?
Your current lender will most likely charge an ‘early redemption fee’ for paying off your mortgage early. Your new provider may charge an administration fee for ‘booking and arranging’ and may also charge a ‘product reservation fee’.
Since a remortgage involves paying off one mortgage and taking out a new one, the new lender will need to do a valuation of your property. As you are not changing the property, you probably do not need to carry out your own survey.
There will be some legal fees to pay when you remortgage but this would be much less than if you were buying a new property. The legal work would include searches and checks on the ownership of the property.
The remortgaging process can take between four to eight weeks.
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