You may have heard the term ‘remortgage’ but be unsure of exactly what it is. Here are the seven most common remortgage questions.
What Is a Remortgage?
A remortgage means replacing your old mortgage with a new one from a different lender. If you have been thinking about taking the equity out of your home to spend on other things or even switching to another lender to get a better rate, then you will need to apply for a remortgage to do it.
When Should I Remortgage?
If you are tied in until a certain date with your existing lender, then you could find yourself paying hefty fees to move your mortgage to a different lender. Therefore it is best to check this and don’t remortgage until you are out of your penalty period.
Do I Need a Solicitor?
You will need a solicitor to help you with the legal work that goes into a mortgage. For conveyancing Birmingham has various options if you live in the Midlands. A solicitor will make sure that all the legal documents are in order and change the mortgage on the land registry.
Is It Complicated?
It isn’t complicated. When carrying out conveyancing Birmingham professionals will make it easy for you. However, you will need to produce proof of your name and address, three months of payslips and three years of accounts if you are self-employed. If you have all the paperwork to hand, it is a simple procedure.
Will The Lender Do a Credit Check?
The lender will need to do a credit check on you before they can decide whether to lend you money. If you are concerned about this, you can apply for a copy of your credit report at https://www.experian.co.uk/experian-account/01_free_score.html so that you can see what is on it and whether you will fit your new lender’s criteria.
If I Apply to Borrow Extra Money, How Do I Get It?
Your new lender will send the money you have applied for to your solicitor. During conveyancing Birmingham conveyancers do this as part of the service. They will then pay off your old mortgage.
How Long Does It Take?
The process takes about 6-8 weeks, but it is best to put your application in place about a month in advance just in case there are any hiccups or the process takes slightly longer than you might think.