Remortgaging Your Property
You are probably worried out rising interest rates if you are reading this section of our website.
The forecast (and that is all it is) is that interest rates are due to increase in July 2022 and again in September. This means that people on variable rates of interest are now looking to move to a fixed rate to bring some certainty to their outgoings in the years ahead.
So what is involved in the re-mortgage legal process?
Re-mortgaging is the process of moving from one bank to another.
Why do I need a solicitor for this?
If you are moving to another bank/lender then you will need a solicitor to examine title to your property and make enquiries on any changes you have made since you bought the property such as extensions.
First we need to get your title deeds. Your title deeds are probably with your current lender if you are re-mortgaging your property. You and any other owners of the property will need to call to our office to sign an authority for us to take up your title deeds. It can take the banks a number of weeks to send your title deeds to us so this should be done soon as possible.
We will also apply for redemption figures (the balance on your current mortgage) so we both know how much is due on your current mortgage.
When you call to sign the authority you will also need to bring the following with you to complete the onboarding process:-
- Full details of your current lender/bank including mortgage account number and property address. We would suggest you bring your most recent mortgage statement as this will have most of the details we require.
- ID (passport/driving licence) and proof of address (recent utility bill) for all borrowers.
- Borrowers will need to call either together or separately as we will have to witness them signing the authority. We can do arrange to do this over Zoom or Teams, if that suits.
Once the above steps have been completed and we receive your title deeds, and all is in order the second stage of the process is for you to sign the new loan documentation in our office. You will have a chance to review the loan documentation and ensure the amount is sufficient for
you to redeem (pay off) the mortgage with your current lender/bank.
We will need to carry out searches against you to ensure you are not bankrupt or have judgements registered against you or that there isn't anything pending registration against the property or any open enforcement notices against the property. In 95% of cases the searches come back clear but we are obliged to carry out these searches by your new bank.
Once the above two stages are complete, we draw down your new mortgage and use it to pay off your old mortgage.
We then have to register the new bank’s charge against the property and arrange for the old mortgage to be released (taken off) the property.
Once this process is complete your title deeds are sent to your new bank who will hold them until you pay off the loan or re-mortgage again down the line.
Any offers of cash back from your bank are dealt with directly by you with your bank and normally this money only issues once the transaction is complete.
You should talk to your broker/mortgage adviser about this if you have any questions.
If you would like to get a quote for our services and speak to one of our solicitors, please compete the form below.
Can we sent you a quote on the cost of re-mortgaging your property?
Please complete the short form below if you would like a quote from John C. O’Donnell & Sons LLP, Solicitors, Galway. A Solicitor will contact you shortly to discuss the purchasing process.