Remortgage
- What Happens?
This guide contains some very important information about the procedures and implications of obtaining a new mortgage. Please read it carefully.
Before I am able to complete your remortgage I must consider the following:
1. Title Deeds
I must apply for your title deeds from your current lender to make sure that your title deeds are in order. I will check to see if there are any restrictions or matters affecting the property as I may need to let your new lender know about them. Please ensure we have your mortgage account number as soon as possible, since without this we cannot get your deeds.
I will also apply for a redemption statement from your current lender at the same time. You must ensure that your new mortgage will cover your current mortgage and/or any penalties that may be included, plus your legal fees and expenses.
2. Searches (a requirement of your new lender)
1. I must undertake a Local Search and check the result is clear. Even
though searches were done when you bought they must be re done and updated.
This will show up obligations of a public nature which are enforceable against
home owners, eg road widening schemes, compulsory purchase orders, tree
preservation orders etc. Occasionally these factors can affect the value
of the property.
2. I may have to undertake a Water Search to check the drainage arrangements
of the property.
3. I will have to undertake a search of the bankruptcy registers to ensure
you are not bankrupt or have any judgements against you.
4. I will also have to undertake a land registry search to ensure that no
entries have been entered against the property since you bought.
If anything adverse is revealed in the results of these searches I may have
to inform your new lender.
3. Planning
It is unlikely that I will have the opportunity to actually view the property. Please let me know if the property has, to your knowledge, ever been altered or extended. I can then check that planning permissions and building regulations were obtained and ensure no breach of any restriction has occurred.
If you intend to extend, alter, develop or redevelop please let me know.
I shall assume that you intend to use the property as a private residence for your own occupation. If you have any other use in mind please let me know.
4. Mortgage Offer
I must make sure you have a mortgage offer and check that it does not contain any unacceptable conditions. Also any conditions imposed by your new lender will have to be satisfied.
You will receive a written offer directly from your building society or bank. I must also receive written instructions from your lender before being able to proceed. We should receive this at the same time as you.
You must, of course, make sure you have enough money over and above your existing mortgage and to allow for legal fees, VAT, and Land Registry fees.
5. Buildings Insurance
If your new lender is arranging your insurance you need not worry about insurance but please make sure you return any necessary forms to your new lender quickly. Also with most leasehold properties the landlord effects insurance. If however, you are arranging your own insurance, you should give me full details of the policy at an early stage. It will be left to you to start the insurance, unless you instruct me otherwise.
6. Life Assurance
If you are obtaining an endowment mortgage or top up, you will need to make sure that your life policy is capable of starting at completion of your remortgage. You should give me full details of the life policy as soon as possible. You should make sure that you have "Acceptance Details" from the life company at an early stage. This often causes delays and is something I advise you to pay particular attention to early on.
7. Other Occupants
You must let me know if anyone else will be living at the property with you since your new lender will need notifying and a Form of Consent will need signing. You will not be allowed to rent out the property, unless your lender has agreed to this in writing.
8. Identity
These days the lending institutions insist that I verify your identity and address. Please bring with you at our meeting your passport and some bills bearing your name and home address. Often a driving license is not sufficient for identity purposes it should be something bearing a photograph.
9. Signing the Mortgage Deed
Before I can apply for your mortgage monies you will need to sign the Mortgage Deed, you may have to call into the office to do this as some lenders require a solicitor to witness your signature. I will let you know when this is ready.
10. Applying for your Mortgage Monies
Once I have received your Mortgage Offer, and have satisfied any special conditions contained in the Offer, received clear results to the searches undertaken, and you have signed the Mortgage Deed I will then be in a position to request your mortgage monies from your new lender. At this stage I will then set a completion date and request a redemption figure from your current lender for the same date as the completion date. Your new lender may at this point require further things to be done which may delay completion until these points are satisfied. These can be references still awaited, or bank mandates forms not completed etc.
11. Completion Date
This is the date:
* Your current mortgage will be paid.
* Your new mortgage will begin.
Completion cannot take place until I am in receipt of your mortgage offer from your new lender and have received clear results to the searches undertaken.
It is worth checking with both your old lender and your new lender, whether there is a "good" time to complete. For example, some lenders charge interest monthly and not on a day by day basis. Completing at the beginning of a month in these cases may mean paying both the old and the new mortgage in one month! The repayment arrangements of your new mortgage also have an effect on the amount of your first monthly payment, on the new loan. So that you know how much your first payment will be, please check the dates we give you for completion with your new lender and let us know if you want it changed. An earlier date will be unlikely, but we can always delay the date (provided we have enough notice from you).
Completion cannot take place at weekends or bank holidays, since the banks are not open then (and neither are we!).
12. Balance
You should also ensure that any balance owed by you (including fees) is available for the agreed date. I will need cleared funds so allow time for this. Our bank need four clear working days for clearance of personal cheques. All cheques are made payable to Crossmans.
GENERAL INFORMATION
Wills
Now is a very good time to consider making a Will if you do not already have one. You may need to come into the office to sign the Mortgage Deed anyway so why not make a back to back appointment with Louis Browne, our Wills expert and kill two birds with one stone! You will find our fees very competitive. He can also advise on tax planning and ways of protecting capital investments.
AND finally, remember I am here to help you and should always keep you well informed. If at any time you feel you are not receiving a quality service please let me know immediately.