Remortgaging may be a good option if you want to release equity from your home, consolidate debts, or you’re looking for a better mortgage deal with lower monthly repayments. But do you need a solicitor for a remortgage? We look into it.
When you remortgage, you essentially switch your existing mortgage for a new deal, without moving house.
Yes, this may be possible if you fit their criteria. If you’re planning to remortgage with the same lender, it’s a straightforward process known as a ‘product transfer’. You won’t need to instruct a solicitor or pay any legal fees.
Yes, you may be able to change your mortgage provider if you’re eligible to do so, but you’re likely to need the help of a solicitor.
You only need a solicitor or conveyancer to remortgage if you are changing your mortgage provider. This is because the title deeds will transfer from one lender to another. A solicitor will carry out all the remortgage legal work, such as:
If you’re switching mortgage lenders, you will incur remortgage costs, but they should be less than arranging a purchase mortgage.
Solicitor fees vary, but you can typically expect to pay around £300-£1000. So, it can be helpful to shop around before making your final decision.
As part of the package to attract new customers, some lenders will offer to pay your legal fees. This will usually involve using the lender’s own choice of solicitor, which can work out more affordable for you in the long run.
The only drawback is that they typically don’t use a high-paying solicitor, so progress may be significantly slower.
If you don’t mind paying the legal fees yourself, you can use a solicitor you already know, or look for a conveyancer on Home Owner’s Alliance. This could potentially speed up the process.
Let’s look at some other charges you need to consider. Bear in mind that the fees you’ll need to pay to remortgage will vary depending on which lender you switch to.
If you’re switching mortgage lenders before your existing mortgage term ends, you may have a penalty to pay. Not all lenders will charge a fee, but it’s worth checking your existing mortgage contract carefully to be on the safe side, as early repayment charges can be in the thousands. If this is the case, it might be worth waiting for your fixed-rate period to end.
When you switch mortgage lenders, some lenders will charge a deed release fee (or exit administration fee) of around £75-£300. This covers the costs involved with releasing the title deeds and transferring them to you. This will be stated in your original mortgage agreement, if applicable. If there’s no mention of a deed release fee, then you shouldn’t have to pay it.
Your new lender may charge an arrangement fee (otherwise known as a product fee or completion fee). This can be anything from £0 to over £2,000
Some mortgages don’t have arrangement fees but instead will have higher interest rates, so weigh up which is the most cost-effective option in the long term.
Your new lender may also request a valuation of your property to see what it’s worth before they agree to approve your new mortgage. Costs can vary between £250-£1,500.
When you submit your mortgage application, some lenders will charge a non-refundable booking fee (also known as an application or reservation fee). It usually comes to somewhere between £99-£250.
Remortgaging with your current lender can be a quick process - sometimes as quick as just a few days, although it’s best to allow a few weeks. They already have your details and an established relationship with you, so this helps to speed things up. They’ll still need to do a credit check though, to make sure your financial circumstances haven’t changed.
Remortgaging to a new lender will take longer. The exact timeline will depend on the number of searches required and how long they take to complete, as well as the solicitor’s workload, which is always worth checking. You should bank on anything from a couple of weeks to two or three months.
Before you go ahead, you should consider the following steps:
Read on to find out how to get your house value before you remortgage
Disclaimer: We make every effort to ensure that content is correct at the time of publication. Please note that information published on this website does not constitute financial advice, and we aren’t responsible for the content of any external sites.
Adele is a personal finance writer with more than 10 years in the finance industry behind her. She writes clear and engaging guides on all things loans for Ocean, as well as contributing blogs to help people understand their options when it comes to money.
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