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The difference between 'Mortgaging' and 'Re-mortgaging' is simply that if you are 'Re-mortgaging' it means you already have a mortgage on your property, and by re-mortgaging you are replacing the existing mortgage with a new one.
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People re-mortgage their properties all the time. Why?
There can be a whole host of reasons why you decide to go down this route.
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The mortgage market is very competitive and you may have spotted a lower rate of interest that can reduce your monthly payments, or you may be borrowing more than your present mortgage to pay for home improvements or a Caribbean holiday.
This is often found to be the cheapest method of raising finance. You may also be switching types of mortgage, for example from an endowment mortgage to a straight repayment mortgage or even an interest only mortgage.
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Before you start there are a couple of things for you to consider:-
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Does your current mortgage have an Early Redemption Penalty?
If so you need to take this into account when working out the sums involved.
Financial Advice - make sure you are getting the best deal on your new mortgage. We recommend you take independent financial advice on this.
Once you are happy on these two points, then the procedure is as follows:-
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Preliminaries |
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We will write to your present lender and ask them for a Mortgage Redemption Statement and the Title Deeds for your property.
At the same time we will send off your Local Authority search and any other necessary searches. During this time you should have made an application for a new mortgage. In most cases you will be asked to supply a reference from your employer, past wage slips and evidence of who you are (passport, driving license, etc). This part of the remortgage is sorted out between you and your financial advisor or new lender and we would not normally get involved with this process.
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Mortgage Offer |
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Once your new mortgage application has been finalised a Mortgage Offer will be issued.
By this time we should have your Title Deeds and searches. If we have requested searches then we will advise you and the lender of any problems which these searched have highlighted.
We will also check whether or not there are any life policies with the deeds.
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Completion Date |
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A completion date is arranged for the earliest possible date and the Mortgage Deed sent to you for signature and return.
We will also ask your current lender for a Mortgage Redemption Statement so we have the exact figure owing to your existing lender.
The completion date is usually arranged for the end of each month to assist you in regulating your mortgage payments.
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Completion Day |
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As soon as we have received the money from your new lender we will send the amount owing to your existing lender in order to pay off the mortgage.
Any balance due to you will be sent to you on that day.
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Post Completion |
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We will send the Mortgage Deed to the Land Registry so they can amend and update their records. Once they have done this they will send the Title Deeds back to us. We will then send them on to the new lender.
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