Do I need a solicitor to remortgage my property?

This article is part of our mortgage crisis series. If you are remortgaging, our solicitors can help you understand the legal aspects of the process.

What do solicitors do when remortgaging?

Solicitors play a crucial role in ensuring the legal aspects of the remortgage are handled correctly, protecting your interests, and providing expert guidance throughout the process.

1. Legal advice

Solicitors offer personalised legal advice based on your specific circumstances. They help you understand the legal implications of remortgaging, discuss available options, and address any concerns or questions.

Legal risks in remortgaging include property title issues, lender disputes, or breaches of mortgage conditions. Having a solicitor will help mitigate these risks and offer guidance throughout the process.

2. Review documentation

Solicitors carefully review the existing and new mortgage agreements, property title deeds, and other relevant documents. They identify legal implications, obligations, or potential issues requiring attention or negotiation during a remortgage.

For instance, during the review process, a solicitor may discover that the existing mortgage agreement includes a restrictive clause that prohibits the client from making specific alterations to the property without the lender's consent. The solicitor can explain this restriction to the client and advise on potential options for negotiating or lifting the clause.

3. Liaising with lenders

Solicitors act as intermediaries between the client, the new and existing lender. They communicate with the lenders, provide the necessary documentation, and ensure all legal requirements are met for the mortgage transfer. This takes the stress away from you and ensures a smooth transaction.

A solicitor may communicate with the new lender to ensure they have received all the necessary documentation for the remortgage application and address any additional requirements or queries the lender raises during the process.

4. Mortgage offer examination

Solicitors examine the terms and conditions of the new mortgage offer. They will identify and explain any legal conditions, clauses, or concerns you should know before accepting the offer - helping you make an informed decision about the remortgage.

Upon reviewing the mortgage offer, a solicitor may identify a condition that requires you to maintain a specific level of buildings insurance throughout the mortgage term. They would then advise you on complying with this condition and help you understand your obligations.

They would also advise you of when your new fixed-rate mortgage will end, help you understand the potential legal implications of switching from a fixed-rate mortgage to a variable-rate mortgage, and discuss the risks and benefits of such a decision.

5. Legal documentation

Solicitors draft, review, and handle the legal documentation required for a remortgage. This may include preparing the mortgage deed, transfer deed, and other relevant contracts or agreements. They ensure these documents accurately reflect the remortgage terms and protect your interests.

A solicitor will draft the mortgage deed, which outlines the terms and conditions of the remortgage, including interest rates, repayment schedules, and any specific agreements between you and the lender. They would explain the contents of the mortgage deed to you before it is executed.

6. Financial settlement

Solicitors coordinate the financial aspects of the remortgage. They work with you, the existing lender and the new lender to facilitate the redemption of the existing mortgage, calculation of fees, and transfer of funds necessary to complete the transaction accurately and on time.

In preparation for the remortgage, a solicitor would calculate the outstanding balance on the existing mortgage, including any early repayment fees or penalties, and coordinate with the new lender to ensure the timely settlement of the current mortgage upon completion.

7. Compliance and due diligence

Solicitors prioritise compliance with legal and regulatory requirements throughout the remortgaging process. They conduct due diligence, such as anti-money laundering checks, to ensure the transaction's legitimacy and protect the client and the lender from potential fraud or illegal activities.

As part of the remortgage process, a solicitor will conduct anti-money laundering checks on clients to verify their identity and ensure compliance with legal obligations to prevent financial crime.

What is required from you?

• ID: A solicitor requires photo ID and proof of address (dated within the last 3 months). Your conveyancer will need to be able to verify the identity of each person named on the mortgage.
   
• Source of funds: Source of funds would be where the money is coming from – often, this would be 3 months of bank statements showing the money in your account. 
   
• Origin of funds: This would be where this money has accumulated from. For example, if you are using money from income, you would be required to provide 3 months' payslips as well. Another example would be from a house sale. You would then be required to show the completion statement from the sale and a bank statement showing these funds entering your account.

Your solicitor or conveyancer is legally required to check the source of funds you use as the mortgage deposit.

Contact our remortgaging solicitors

If you've decided to remortgage your property, we can ensure the process is as simple and stress-free as possible.

Our solicitors and conveyancers work with you to help you fully understand the remortgage process and any legally binding conditions.

We have offices in Brighton, Eastbourne, Hastings, London, Uckfield, and Ulverston, and we work with clients locally and nationally.