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Fixed Fee
Remortgages from £95
(plus vat and
disbursements)
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click below for your free
remortgage quote
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Terms and Conditions of
Remortgage Conveyancing
-
Applies to registered
title only
-
Local Search Indemnity
is included within the
quote. However, if the
lender insists upon a
full local authority
-
search, the full local
search fee must be paid.
Your Fixed
Fee Remortgage Quote
includes:
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All-In cheap remortgage quote
Your Complete
Guide to Re-mortgages
What
is a Re-mortgage?
When you
re-mortgage your property,
you are changing your
mortgage from your existing
mortgage lender and moving
to another mortgage lender.
How do I arrange a Re-Mortgage?
If you are
confident in your ability to
compare interest rates and
deals you can shop around
your local mortgage lenders
on the High Street or you
can search the Internet.
There are hundreds of
different types of mortgage
product available so you may
find it difficult to obtain
and compare all the
information.
OR
You can
appoint a mortgage advisor
or Individual Financial
Advisor (IFA) to act for
you.
To find an
IFA in your area check out
www.searchifa.com. When
using a mortgage advisor or
IFA it is important to check
that they are regulated by
the Financial services
Authority (FSA).
Mortgage
Advisors generally tend to
work within banks/building
societies and estate
agencies. They may only be
able to offer mortgages from
a limited number of mortgage
lenders and they should
advise you of this.
Other
Mortgage Advisors and IFAS
are able to search the whole
mortgage market for you,
using sophisticated software
that is updated daily, to
find the best deal for you.
Once you have
decided upon the deal that
you wish to accept you then
apply to your new lender by
completing a ‘Mortgage
Application’ form. Your
lender will check your
income and check the value
of the property before
confirming that they are
prepared to grant you a
mortgage. When they are
satisfied that you can
afford to repay the mortgage
and that the property is
good security for the
mortgage they will then
issue a written mortgage
offer.
How do I know
how much I can borrow?
The mortgage
lender will usually
calculate the amount they
will lend you on:-
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The
amount you earn. They
will require proof of
income, if you are
employed they usually
ask for pay-slips or a
P60. If you are self
employed they will want
to see audited accounts.
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The value
of the property. Lenders
will charge you a
‘Valuation Fee’ to value
the property. They do
not always carry out a
physical survey of the
property although with
older/specialised
properties they may do
this. More often an
Automated Desk top
Valuation is carried out
where they compare the
value of your property
with information gleaned
from internet sites such
as Rightmove and from
the Land Registry.
What types of
mortgage are available?
The mortgage
market changes daily and it
is therefore advisable to do
your home-work to see what
is currently available.
Below are the typical types
of mortgage available in the
UK.
Variable rate
mortgages
With a
variable rate mortgage the
interest may go up or down
during the life of the
mortgage depending on what
the bank base rate is doing.
The benefits of a variable
rate mortgage are that there
is not usually a ‘tie in’
period so you can repay the
mortgage whenever you wish
and if interest rates go
down you will get the
benefit. However, if
interest rates rise you will
pay more.
Fixed rate
mortgages
With a fixed
rate mortgage the interest
rate is fixed for a set
period of time – usually 2,
3 or 5 years but sometimes
longer. During the fixed
rate period the interest
rate will not go up or down
whatever the bank base rate
does. There is usually a
penalty clause which applies
during the fixed rate in
which you have to pay a lump
sum to the lender if you
want to repay the mortgage
during the fixed rate
period. So you are
effectively ‘tied in’ to the
mortgage for the period of
the fixed rate and sometimes
longer. You have the
advantage of knowing how
much your monthly payments
will be during the fixed
rate, but you are tied to
the mortgage unless you want
to pay a penalty and if
interest rates go down then
you will still pay the
higher rate.
Tracker
mortgages
A tracker
mortgage tracks a stipulated
bank base rate and usually
guarantees not to rise
beyond a certain percentage
above the bank base rate.
This means that your
mortgage can go up or down
depending on what the base
rate does. You have the
benefit of paying less if
the mortgage rates go down
but you will pay more if
they go up.
Interest only
mortgages
If you are
trying to keep your monthly
costs down you may opt to
pay only the interest on
your mortgage. This means
that at the end of the
mortgage you will still owe
the amount you borrowed ‘the
Capital’. Most lenders will
insist that you take out a
‘repayment vehicle’ i.e. an
insurance policy, pension
etc. to repay the mortgage
at the end of the term.
Capital
repayment mortgages
With a
capital repayment mortgage
you pay the interest plus
part of the loan off each
month. In the early years it
is mostly the interest which
is paid but over the life of
the mortgage you gradually
reduce the loan until it is
all paid off at the end of
the term.
Self-Certified Mortgages
With a
self-certified mortgage the
lender trusts you to certify
how much income you earn.
This can be beneficial to
self-employed people or
people whose income cannot
be certified in the usual
way. Few lenders now offer
these types of mortgages and
they usually cost far more
in interest than a standard
mortgage.
Equity
release mortgages
This type of
mortgage was set up so that
home owners could release
equity from their properties
in order to raise funds to
supplement their income, pay
for home improvements or
residential care etc. The
idea is that the funds are
advanced by the lender and
the money is re-paid from
the proceeds of sale of the
property once the home-owner
has passed on. The home
owner needs specialised
advice on this type of
mortgage and CMS can provide
a quotation for this. Please
call us on 0845 060 33 55
for a quote
What happens
once I have been accepted
for my mortgage?
Once you have
an offer of mortgage ‘in
principle’ you must then
appoint a solicitor to carry
out the re-mortgage for you.
Why do I need
a Solicitor?
Your mortgage
lender will insist that you
instruct a solicitor. The
solicitor must ensure that
the property has good legal
title (i.e. that the deeds
are in order), they must
also ensure that you are
properly advised about the
new mortgage and that you
have signed the mortgage
documents properly. When the
re-mortgage is completed
they must then repay the old
mortgage and register the
new mortgage at the Land
Registry.
Re-mortgage and Divorce or Partnership breakdown
Very often a
re-mortgage is required when
a couple divorce or there is
a partnership breakdown. A
re-mortgage may be necessary
to raise funds to buy out
one of the owners of the
property.
Following
divorce or separation it is
always important to deal
with the property issue
quickly. You may also need
to revise your Will.
If the names
on the deeds are to be
changed at the same time as
the re-mortgage then you
will also need a ‘Transfer
of Equity’. You can obtain a
quote for a Re-mortgage and
Transfer of Equity by
clicking
here.
Re-mortgage and marriage or adding a partner to
the mortgage
Upon marriage
or entering into a
partnership many couples
decide to put the mortgage
and the property into joint
names. If you wish to add a
partner to your deeds as
well as your mortgage you
will need a quote for a
Re-Mortgage and Transfer of
Equity which you can get by
clicking
here.
Buy to Let Re-mortgages/Portfolios
If you own a
buy-to-let property or
portfolio then you may wish
to re-mortgage your
property/portfolio to obtain
the best deal currently
available. If you are
re-mortgaging a number of
properties we can offer a
significant discount. Please
call us on 0845 060 33 55
and we shall be happy to
discuss your requirements
and provide you with a
competitive quote.
Islamic Re-Mortgages
We have
solicitors on our panel who
specialise in Islamic
mortgages and who are on the
panel of the lenders
offering this type of
mortgage.
Please call
us on 0845 060 33 55 for a
quote.
How long will my re-mortgage take?
It will
generally take 2-4 weeks for
your new mortgage lender to
issue a written mortgage
offer. During this time you
should instruct your
solicitor and they will be
able to obtain your deeds,
deal with identification and
money laundering
requirements, and obtain a
repayment statement from
your lender. Once the
mortgage offer is issued
they will then send you the
mortgage deeds to sign and
return. When they have the
signed mortgage documents
they can then arrange a
completion date with your
new lender. The new lender
usually requires a working
week’s notice to send the
mortgage funds. From when
you get your written
mortgage offer it is usually
possible to complete within
2-3 weeks provided there are
no unusual complications.
I have a second mortgage/secured/business loan on
my property – what happens
about that?
If you intend
to repay the second secured
loan out of the re-mortgage
funds your solicitor will
arrange this for you.
If you do not
intend to repay the second
secured loan you will need
to notify your new lender
and obtain their permission
for the second charge.
You should
also notify your solicitor
who will need to obtain the
second lender’s permission
to the new mortgage and they
will need to arrange a ‘Deed
of Postponement’ to ensure
that the second mortgage
stays a second mortgage.
Additional
legal costs will be incurred
if there is a second
mortgage please call us on
0845 060 33 55 for a
quote.
What happens after completion of my re-mortgage?
Your
solicitor will pay off your
old mortgage. They will send
you any funds that are
left-over and arrange to
register the new mortgage at
the Land Registry. Once this
is complete they will send
you a copy of your title
deeds. They will then
archive their file.
End of
remortgage information
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