Re-mortgaging requires various legal activities from a solicitor. Tasks include:
- Reviewing property title deeds.
- Mortgage document preparation: the solicitor will prepare the legal documentation for the new mortgage. This document contains property, lender, and borrower information.
- Property search: the solicitor will check the property for charges or liens.
- Registering the mortgage: the solicitor will register the new mortgage with the Property Registration Authority (PRA) for legality.
- Advising the client: the solicitor will explain the mortgage conditions and risks to the client.
A solicitor handles the legal aspects of the re-mortgage.
Re-mortgaging your home might be complicated, but Blake & Kenny LLP can help. We'll help you navigate the legal side of your re-mortgage.
Our experienced solicitors will analyse your property's title deeds, draft the relevant legal documents, conduct a property search, register the mortgage with the Property Registration Authority (PRA), and advise you on any risks.
You can focus on finding the best re-mortgage deal while we handle the legal details.
Please contact us if you need legal advice about re-mortgaging. To schedule a consultation with one of our solicitors, fill out our online contact form or phone us.
When should I engage a solicitor?
Re-mortgaging should start with a solicitor. A solicitor can explain the legalities and risks of re-mortgaging and can guide you on the best course of action.
For mortgage approval, your solicitor must have authority to obtain the title deeds from your lender. Once you decide to re-mortgage, consult your solicitor early, because your previous lender may delay title-document retrieval.
Frequently asked questions
What are the requirements for re-mortgaging my property?
You need a solid credit score, a consistent income, and enough equity in your home to re-mortgage.
How long does the re-mortgage process take?
Application complexity and lender requirements affect the timeline of the re-mortgage process. It usually takes weeks to months.
How much will it cost to re-mortgage my property?
Lender, mortgage type, and loan size affect the cost of re-mortgaging your home. Application, legal, and valuation fees may apply.
Will I need to have a property valuation done?
Re-mortgage lenders require a property valuation. This ensures the property is worth the loan. Most lenders offer a panel of valuers you can hire. After being pre-approved and requesting a loan offer, this is needed.
Will my credit score affect my ability to re-mortgage my property?
Yes. A good credit score can help you get better mortgage rates, as lenders analyse it during the application process.
What are the differences between fixed and variable interest rates?
Fixed rates are set for a defined time and do not vary. Market factors and the European Central Bank rate determine variable interest rates.
What are the penalties for early repayment of a re-mortgage?
Early-repayment penalties vary by lender and mortgage terms. Most variable-rate mortgages do not charge for early payoff, while fixed-rate mortgages use a calculation.
Can I re-mortgage my property if I am self-employed?
Self-employed people can re-mortgage their homes. Mortgage qualification may be harder and take longer. A mortgage broker can help prepare your mortgage application if you are self-employed or investing.
What is the maximum loan-to-value (LTV) ratio for re-mortgaging?
The maximum loan-to-value (LTV) ratio for re-mortgaging can vary depending on the lender and the type of mortgage. Typically, the LTV ratio is capped at around 80%, with some exemptions applying at 90%. This will vary depending on the government policy and regulations.
Can I include home improvements or debt consolidation as part of my re-mortgage application?
This depends on the lender and mortgage type. Some re-mortgage lenders allow home upgrades and debt restructuring. Before applying to a lender for home upgrades or debt consolidation, consult a mortgage consultant.
Advantages and disadvantages of variable and fixed rate mortgages
Variable and fixed rate mortgages have pros and cons depending on the borrower.
Advantages of variable rate mortgages
- Lower interest rates: variable rate mortgages often have lower interest rates than fixed rate mortgages, lowering monthly payments.
- Flexibility: variable rate mortgages offer early payoff or extra payments without penalty.
- Adjustability: lower interest rates allow borrowers to refinance or make extra payments.
Disadvantages of variable rate mortgages
- Rate changes: a variable rate mortgage's interest rate might fluctuate, affecting monthly payments.
- Risk of increased payments: higher interest rates can make variable rate mortgage payments unaffordable.
Advantages of fixed rate mortgages
- Predictability: a fixed-rate mortgage makes budgeting easier because the interest rate and monthly payments stay the same.
- Protection from rising rates: a fixed-rate mortgage protects the borrower's payments against rising interest rates.
Disadvantages of fixed rate mortgages
- Fixed-rate mortgages carry higher interest rates than variable-rate mortgages.
- Less flexibility: early mortgage payoff or extra payments may incur fines.
- Non-adjustability: fixed-rate mortgage holders cannot take advantage of decreased interest rates.
Both types of mortgages have pros and cons, so evaluate your financial situation and risk tolerance when choosing one. Consult a mortgage broker or financial advisor to make the best choice.
