Remortgage Steps | Why It Takes Time!
Remortgaging is not instant. There is a legal process which your Conveyancer must follow. Your Conveyancer is saying to the Bank that your property is good security for the loan.
To ensure this your lender has terms and conditions which must be followed and you need to be aware of the conditions set out in your mortgage offer. You should read your mortgage offer and ensure you understand it.
You must comply with the mortgage conditions and it helps your Conveyancer greatly if you provide the necessary documentation referred to in your offer.
Be PROACTIVE and assist your Conveyancer. This will save time. Don't forget your Conveyancer has no personal knowledge of your property and cannot complete without your help.
Provide your buildings insurance, copies of Tenancy Agreements, evidence that credit cards have been repaid, membership of Rent Smart Wales, copies of Planning Permissions & Building Regulations for alterations and so on.
Your remortgage will complete much quicker.
See below my Remortgage Guide
REMORTGAGE GUIDANCE NOTES
While we make every effort to complete your remortgage as soon as possible there are various steps which must be carried out.
These are:
1. For every new matter we must send you our Client Care and terms and conditions.
2. Please complete, sign and return our Client Care forms. These are required for compliance purposes. We are heavily regulated and cannot dispense with this. We need your monies on account and must hold your original ID documents and proof of address to be fully instructed.
3. Suitable ID includes your original passport or photocard driving licence and original recent utility bill or bank statement. ID can also be verified by another solicitor or regulated IFA or mortgage broker.
4. We must obtain your deeds and lender(s) redemption figure(s). Your redemption figure confirms how much you owe the lender. To obtain this we need your lender(s) address and account number or reference.
5. We will order office copies from Land Registry. Office copies show the title to your property. We will also order any lease or historic filed deeds referred to. These may contain onerous / adverse conditions. We must review them and ensure they are not going to affect property value or the lender's security. This can take some time. Please be patient.
6. If any title defects are revealed they must be resolved before completion of the remortgage. This will delay your matter but it is vital future proofing.
7. Please provide a copy of your building insurance policy. This MUST cover, as a minimum, the property rebuild value. Please have your lender’s details noted on your buildings insurance.
8. We must receive a copy of your lender’s valuation. We will review this to ensure there is no undervalue, or any alterations which required Planning Permission or Building Regulation Consent (“PLP & BRC”). Lenders do not always provide the lender valuation to your Conveyancer.
9. Please provide us with all PLP & BRC for your alterations. In some circumstances Indemnity Insurance can be obtained. We will discuss this at the relevant time.
10. Upon receipt of your mortgage offer we will review this, report to you and request that you sign the mortgage deed. This deed grants the lender a charge over your home. Your home is security for the mortgage loan.
11. Your property must be owned by the same parties who are the borrowers stated within the mortgage offer.
12. We must hold search results (local) or "No Search Indemnity Insurance". Your local search can take a fortnight, or longer during busy times. Hopefully your lender accepts search insurance as that is usually quicker and easier
13. We can usually request your mortgage advance from your lender at this point. Bear in mind that most lenders insist on 3 to 5 working days notice
14. Prior to completion the lender requires us to carry out final searches at Land Registry. As long as these are clear we can proceed to completion.
11. On completion we pay Land Transaction Tax or Stamp Duty Land Transaction Tax. This is applicable if there was a change of names on the deeds.
12. We register the remortgage at Land Registry for you. However the Registry can take months to complete a registration. A copy is sent to you when we receive it.