A conveyancing re-mortgage is the legal process carried out by a mortgage solicitor, of changing the supplier of borrowing that is secured on land or property from one lender to another. The rates and deals that banks and other lending institutions offer vary and changing to another loan supplier can be financially beneficial to a borrower if there is another lender that can offer lower rates or a better overall deal.
Another aspect of a conveyancing re-mortgage that is familiar to many people is when a mortgagee needs to borrow more money on the back of existing borrowing. In this case the loan needs to be restructured so that the amount loaned can be increased. Further borrowings can be used for house improvement, settlement of debts or for the purchase of consumer goods however the lender will always ensure that there is more than enough equity in the property to cover the increased loan.
As a result of 50% of all marriages ending in divorce, one very common use of a conveyancing re-mortgage is to enable one of two joint owners to buy the others share by way of transfer of equity. The lender must be satisfied that the proposed new sole owner can service any enhanced loan however even when that is not the case it may be possible to increase the mortgage if both parties remain liable to the lender. This means that the departing owner effectively guarantees the new mortgage which facilitates the release of cash for that share. These matters are usually dealt with by a mortgage solicitor.
Just as in most financial transactions a conveyancing re-mortgage entails professional fees. You may have to pay for a chartered surveyor to value the property for the new lender. You’ll need to pay a mortgage solicitor for his legal services, and you may have to pay arrangement fees to the new lending institution to cover their administrative and legal costs.
Most of the best deals offered by lending institutions apply only to new customers. Your present lending institution might have very good offers that don’t apply to you however you can sometimes avail yourself of these offers or at least get better terms by simply informing them of your intention to pay off your loan and move to another lender.
Before you go ahead with re-mortgaging make sure that you know what your present mortgage lender’s policy is regarding penalties for loans repaid earlier than the full-term period. Re-mortgaging might do you no good if stiff penalties will negate the effect. You should be able to find their policy written on your original contract documents or you can ring them to ask for their terms regarding your account.
Where possible solicitors deal with matters electronically and there is no need for any of our clients to ever attend our offices. Clients who do not have access to a computer can still be dealt with efficiently by use of post and telephones and will find that their solicitors service still proceeds at a fast pace due to use of modern technology again without the necessity to attend any loan modification attorneys.