Remortgaging – A Mystery Explained


What is a remortgage?

A remortgage is a new mortgage on a property a person already owns. Homeowners take this option for differing reasons, but predominantly it is either to replace an existing mortgage or borrow money against the property, be it for home improvements, consolidating debt, or another investment. According to some experts, around a third of all home loans made in the UK are actually remortgages.

Is it as confusing as some make out?

Not at all. And neither need it be a complex process. If you use an experienced firm of solicitors and conveyancers, they will both fully explain and take away any concerns you might have. They will also offer independent advice as to whether you are taking the right path. If another option might be more appropriate they will steer you in a brighter direction.

Also worth bearing in mind is the sheer number of mortgage packages on the market. Is it worth sticking with your current product, be it a variable or tracker rate mortgage? Seek advice before you make a decision.

Valuation

Applying to remortgage a property will inevitably involve having your home valued. This can be a source of frustration. One person’s opinion, sometimes based on little more than a cursory inspection of the building, can influence the whole process and dictate whether the remortgage is a viable proposition or just so much pie in the sky. Incredibly, some lenders’ valuation might involve little more than checking the outside of the property from the street.

Solicitors can help build your case towards a reasonable and fair valuation. They can help to provide evidence of higher sales prices of similar properties in your neighbourhood and detail the improvements made since you moved in.

Too many times, remortgaging falls at this hurdle when it shouldn’t have to.

Someone on your side

Put simply, engaging a conveyancing solicitor means you have someone of knowledge and experience on your side. All too often people jump in and make a remortgage decision that can leave them floundering again in a few years time – and then the remortgage option has disappeared.

Don’t take that risk – seek the correct advice – we’re here to help.