Do I Need A Solicitor To Remortgage?
Are you planning to renew your mortgage soon? If so, you might be asking yourself, "Do I need a solicitor to remortgage?" The answer might not be as straightforward as you think. While legal work is mostly required, there are also situations where it's not necessary. So, before you start shelling out money for a solicitor, let's take a closer look at the factors that could affect whether or not you need one.
In this insight, we'll explain when a solicitor is needed during a remortgage, the costs involved, and how you can potentially avoid paying them.
Key Takeaways
- Remortgaging means changing from one mortgage deal to another on a property you already own, with your current lender or a new one.
- If you choose to remortgage, a solicitor is always necessary to complete the legal work on behalf of your new lender.
- You can expect to pay between £250-£750 for solicitor fees, depending on factors such as location and agreed completion time.
- To avoid paying for solicitors' fees, you can use your cashback to pay the invoice or choose the free legal option where your lender picks a conveyancer for you, or you can stick with your current lender and arrange a new product, which is called a product transfer.
Do I need a Solicitor to Remortgage?
You will need a solicitor to remortgage to a new lender. Most lenders will appoint a solicitor for you and cover the cost as an incentive. You will not need a solicitor if you choose a product transfer with your current lender.
Remortgaging means changing from one mortgage deal to another on a property you already own, with your current lender or a new one. People choose to remortgage for several reasons, such as getting a better rate, freeing up cash, reducing monthly repayments, investing in home improvements, or switching to a provider with fixed payments.
Note that remortgaging usually means changing to a new lender, not staying with your current one. If you do choose to stay with your current lender, that's known as a product transfer.
Why is a Solicitor Needed to Remortgage?
When you're arranging a mortgage, a solicitor's role is to carry out the necessary legal work, also known as conveyancing. This is because the lender needs to protect themselves legally when they lend you money to buy a property. To do this, they arrange a 'charge' on your property, which gives them the legal right to repossess it if you can't afford to repay your mortgage. When you choose to remortgage, you are essentially agreeing to switch your mortgage to a new lender. In this case, a solicitor is always necessary to complete the legal work on behalf of your new lender.
Looking For Mortgage Advice?
If you're thinking about your mortgage options ahead of a remortgage, a big move, or even to borrow more?
We can help you find a mortgage specialist to offer you the very best advice. Complete our Sunny Fact Find form to provide us a bit more detail about your circumstances and we'll find the best-suited adviser for your needs.
Your appointed adviser will contact you to discuss how they can help, you decide how to proceed.
What Does a Solicitor Do During a Remortgage?
There are several additional tasks that a solicitor performs during the remortgaging process, beyond what we've already mentioned. Primarily, their responsibility is to keep you informed of all legal updates regarding the remortgage.
Most solicitors now offer portal access on their websites, which allows you to track the progress of your legal work in real-time, eliminating the need to wait on hold for updates. This is especially helpful if you've engaged a conveyancing firm rather than a solicitor.
Through the portal, you can monitor the tasks being worked on by your solicitor, including requesting the title deeds and mortgage redemption statement from your current lender, reviewing the terms of your new offer and drawing your attention to any important details, conducting necessary checks and searches to prevent unexpected issues that could slow down your remortgage, receiving funds from your new lender on completion day, ensuring that your current mortgage is paid off promptly, and making adjustments to your title deeds and registering them with the Land Registry to indicate the change of lender.
Checks and searches solicitors carry out during remortgage include:
- Local Authority Search: This check will reveal whether there are any planning permissions, tree preservation orders or restrictions on the property that may affect the remortgage process.
- Land Registry Search: This will confirm that the seller is the legal owner of the property, and whether there are any mortgages, charges or other interests registered against the property.
- Environmental Search: This search will determine if there are any environmental issues affecting the property or the surrounding area.
- Chancel Repair Liability Search: The Chancel search check will reveal whether the property is liable for repairs to the local church.
- Water and Drainage Search: This search will reveal whether the property is connected to mains water and drainage, and whether there are any public sewers or drains affecting the property.
The exact checks and searches that a conveyancing solicitor will carry out during a remortgage may vary depending on the individual circumstances of the property and the lender's requirements.
Do you Pay Solicitor Fees When remortgaging?
To remortgage, a solicitor fee will be required. Solicitors and conveyancers are separate entities from lenders, which means someone will need to pay for their services. The cost of solicitor fees for remortgaging is generally charged as a flat fee, unless additional work is needed. Additional work may involve transferring equity or paying off second charge loans. However, the cost of legal work can often be avoided by choosing the right mortgage product.
How much do the fees cost?
You can expect to pay between £250-£750 depending on factors such as location, agreed completion time, and whether you opt for a specialised conveyancing firm or a solicitor.
If you find a cheaper quote, you may consider changing conveyancers. It's possible to do, but you may not always end up in the position you want to be in. Be sure to talk to a mortgage adviser first to see how changing solicitors could impact you.
How can you avoid paying for a solicitor during a remortgage?
Lenders compete with each other to offer better deals to clients. When you remortgage with a lender, they may offer you incentives like cashback, free legal services, or even a free iPad. To avoid paying for solicitors' fees, you can use your cashback to pay the invoice or choose the free legal option where your lender picks a conveyancer for you. If you want to choose your own conveyancer, you should go for the cashback offer instead.
Another option is to stick with your current lender and arrange a new product, which is called a product transfer. This option doesn't require any legal work, so it saves you both money and time. Don't hesitate to talk to a mortgage adviser about a product transfer because they can still assist you.
Finding a Mortgage Adviser for Remortgaging and appointing a Solicitor
When you remortgage, your mortgage adviser will be able to consider your circumstances and make an appropriate recommendation on how best for you to proceed with your remortgage solicitor options. If you need to appoint your own solicitor, they will even be able to help with that.
FAQs
Do I need a solicitor to remortgage with the same lender?
You will not need a solicitor to remortgage with the same lender. This is known as a product transfer and no legal work is required unless you are transferring equity or repaying a second Charge.
When do I need a solicitor to remortgage?
You will need to appoint a solicitor when you remortgage to another lender. You can do this as soon as your application is approved by your lender.
How long does a remortgage take with a solicitor?
Remortgaging involves legal work with a solicitor that usually takes about 4 weeks. It's a simple process, but doing it before your fixed rate ends can help you finish the legal work in advance. That way, everything is ready when it's time to complete the remortgage.
Can I remortgage on my own?
You can remortgage online without the help of a mortgage adviser. However, you will still need to appoint a solicitor or conveyancer to complete the legal work, meaning you will not be able to technically remortgage alone.
Do you have to have a solicitor to remortgage?
As an alternative to having a solicitor to remortgage, you could appoint a conveyancer. Either need to be appointed to help with the legal side of things.
How easy is it to remortgage your property?
Remortgaging your property is usually a straight-forward process.
Finding the right mortgage adviser is crucial to having an easy remortgage.
