With the governor of the Bank of England, Mark Carney indicating that interest rates will start to rise before too long, the unheralded period of low interest rates and cheap borrowing may well be coming to an end. Many home owners may start to think about moving their existing variable rate mortgage to a fixed rate mortgage to give them more control and certainty over what is often their biggest monthly payment.
This process, known as remortgaging, means an existing mortgage is repaid, a new mortgage taken out and the mortgage product changed. This can either be with the same lender or a new lender who offers a mortgage package which better matches the borrower’s requirements at this point in time.
The new lender will be securing their mortgage over the borrower’s property and will instruct a solicitor to act on their behalf, to ensure the borrower’s title to their property is good and marketable. This may involve the solicitor carrying out the various local and other routine searches much as if the property is being bought again but this time for the new lender. Most lenders will allow a borrower to choose the solicitors’ practice from those on their mortgage panel. The process will then start when a mortgage offer is issued to the borrower and mortgage instructions sent to the panel solicitor. It can frequently be carried out swiftly.
If you are thinking about remortgaging, make sure you do so in good time before your current deal comes to an end. The process usually takes about a month, depending on individual circumstances.
The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.