How re-mortgaging works

The mortgage is one of the biggest monthly costs in UK households, but many people don't know how re-mortgaging works

08:43 27 October 2013

When it comes to reducing monthly costs, many people think of their energy and phone bills, but don't consider re-mortgaging. However, the mortgage and car loans are the biggest costs that UK citizens have to pay. That's why re-mortgaging can be a very important process for you. Here is how it works.

• the customer receives instructions from the lender company and some questionnaires have to be filled with information regarding the estate and current mortgage;

 

• a law firm will check all of the information set in the mortgage offer to verify it and will decide the other legal steps; the owner will have to sign some witness papers;

 

• a redemption statement is sent to the owner and the law firm informs them about any additional mortgage fees;

 

•  The law firm submits a certificate of title, which stipulates all of the agreed terms of the mortgage. The property now becomes marketable;

 

• the law firm starts the pre-completion searches to see if the property is registered correctly in the Land Registry and to check if the customer has any bankruptcies declared; if not, the re-mortgaging process continues;

 

• completion of the re-mortgaging soon follows, as the law firm receives the necessary funds from the customer and confirms the deal;

 

• The law firm submits the new charge to the Land Registry and the re-mortgaging process can be completed.

The re-mortgaging process may seem a little bit confusing, but the fact is that the customer doesn't have to do that much, except agreeing to what the new lender and law firm are doing. This means that you can spend your time searching for the best re-mortgage and don't worry about the rest of the process.