When remortgaging, many mortgage lenders will offer free legal fees. Naturally, for the borrower, the opportunity to save a few hundred pounds can appear to be a worthwhile incentive.
Often the purpose of remortgaging is to save money with a more favourable interest rate from a different lender. Remortgaging can also be used as way to borrow money against your property, or if there is a change in personal circumstances of the borrower.
What is involved?
Remortgages generally take between 1 to 2 months, with the main activities outlined below:
- checks and searches
- liaising with current lender for redemption statement and property deeds
- reviewing mortgage offer and confirming that conditions have been met
- transfer of funds
- Land Registry and updating title deeds with details of your new lender
What are legal fees?
These are fees payable to the solicitor or conveyancer for undertaking the legal work and managing any legal and financial transactions involved with the remortgage.
Normally, the legal fees are paid when a remortgage is completed. It may, in some cases, be necessary to pay an upfront ‘on account’ deposit to cover the costs to the solicitor or conveyancer of doing preliminary searches and work.
Free legal fees
Many remortgages include a free legal package. At first glance, this may appear to be highly appealing. The lender however, will invariably be dealing with a high volume of transactions within its ‘conveyancing factory’ at any one time, so don’t expect a high-speed turnaround or a bespoke personal service.
If you are using the remortgage funds for a property purchase, then it even more key that you seriously consider not using the free legals being offered. The solicitor/conveyancer acting in your purchase will not be able to speak to the firm acting in the remortgage, so they will not be able to manage the remortgage completing at the correct time to coincide with the purchase. This will all be down to you. All too often, on a purchase potential completion dates are being discussed and you will not be in a position to do anything as you won’t have any real reassurance that the remortgage funds will be available. It often means exchange of contracts has to be delayed.
Using a conveyancer
It is very much in the interest of the conveyancing firm to provide a quick, personal and effective service to ensure any finances and the transaction thereof, are in place at the time of completion. The conveyancer will also arrange to pay the outstanding debt to your current lender. Engaging with a reputable conveyancing firm will provide an efficient, professional service with a greater level of personal engagement.
Valentine & Co can provide a prompt and reliable fixed-fee service with no hidden costs, providing regular progress updates and peace of mind throughout the remortgaging process.
For more information or advice on the topics above, please don’t hesitate to contact us…