REMORTGAGING - Guide to the Legal Process

A remortgage or refinance mortgage is moving your existing mortgage to a new lender to receive a better rate of interest or to release equity.

At Elliot Mather, we know that you want to get things moving as soon as possible.  That is why we aim to complete all standard remortgage work within fourteen working days of receiving your mortgage offer from your lender.

On receipt of instructions, we will

• Acknowledge your instruction to you and your introducer
• Send you a Terms of Business letter and Mortgage Questionnaire (unless you have already completed the same with your introducer).
• Request identification from you if not received from your introducer
• We will arrange special search insurance so we do not have to apply to the Local Authority and speed up your re-mortgage.  Most lenders are happy with this but there may be one or two who do require a full search, if so, we will advise you.
• Request title deeds and details of freeholder if leasehold.

On receipt of your mortgage offer, we will

• Send your mortgage documents to you
• Request any searches or details required in your offer
• Request an up to date redemption statement
• Set a completion date
• Make sure all mortgage conditions requiring our attention are complied with
• Report on the title to your lender and request funds
• Inform all parties of completion date

On completion, we will

• Receive your funds from the lender
• Confirm redemption amount with your existing lender
• Finalise completion
• Release funds to relevant parties
• Pay you any balance due
• Pay your introducer if necessary
• Deal with the registration formalities

Signing the mortgage deed

Before we complete your remortgage, we will be sending you a mortgage deed to sign in front of a witness.  This shows that you accept the terms and conditions of the mortgage which is then secured against your property.  If you do not keep up your payments, the lender would have the right to take proceedings against you.  This can lead to repossession proceedings, which could mean that you would lose your home.

Some mortgagees require the witness to your signature on the mortgage deed to be a solicitor, legal executive or licensed conveyancer.  If you live out of the area and we are dealing with you by post you will need to take the deed to a local solicitor who may charge you a fee for witnessing your signature.  You will also need to take identification with you, preferably a passport or other photographic identity.  You will be responsible for any additional charges that they may charge you for their time. These charges can vary.  

Special Cases

Not every remortgage case will be straightforward.  Where multiple parties are involved or special circumstances occur, then specific rules and requirements will apply.

For information regarding transfer of equity  see our factsheet SPECIAL CIRCUMSTANCES - Transfer of Equity

Stamp Duty

Occasionally stamp duty is payable even though you are only re-mortgaging the property.  This is when there is a change in ownership at the same time as re-mortgaging.

We will advise you if any stamp duty is payable, but you must tell us if there is to be any payment made for disposing of or getting an interest in the property, as this may have implications for Stamp Duty Land Tax.

Return to list of factsheets.