Remortgaging is a complicated subject and while it can release some much needed funds from your property, it can also be a stressful and confusing time. We’ve compiled everything you need to know about remortgaging here to help you get the most out of your new mortgage.
Most people think about remortgaging due to one of three reasons:
First of all, your solicitor will need to request your mortgage deeds from your bank and get the title from the Land Registry to check through as if it were a new purchase.
However, unlike a new purchase, usually you won’t require any conveyancing searches for a remortgage, but you might have to pay indemnity insurance, as well as a local search to find out if there’s’ any risk of new developments being built soon.
After this, your solicitor will get you to sign a new mortgage deed and will then request the mortgage funds and carry out the usual priority searches to find out if any entries have been made at Land Registry and that no bankruptcy claims have been made.
After the funds have been transferred and any remaining debt has been paid on the previous mortgage, your solicitor will register the new mortgage with the Land Registry.
When you remortgage your property you may have to pay stamp duty, as HMRC count mortgage debt as “chargeable consideration”. The amount of this depends on the price of your property and the conditions surrounding your remortgage. If you would like to know more about the potential cost of stamp duty on your remortgage, just give us a call and we’ll talk you through it.
Give us a call on 0207 4065880 to discuss your remortgage and see what our professional and helpful property solicitors can do for you.
Ellie manages the content for the Capital Conveyancing site, finding ways to help Londoners looking for information and guidance around the conveyancing process, and presenting it in a clear way. Ellie loves writing about all things London, as her research leads her to discover new areas and history.