The legal process for re-mortgaging or switching a mortgage is straightforward but does require the services of a solicitor.
We at Gore & Grimes Solicitors LLP, strive to provide a streamlined approach to each transaction. With each transaction we will keep you advised as to progress at all times, and we set out below a step-by-step guide as to what is involved.
Once you have identified the best value mortgage through a broker or by direct contact with the new lender, you will complete a loan application form and return it to the lender with the required supporting documentation (for example bank statements, pay slips, proof of identity and proof of address). As part of the loan application, you must identify your solicitor and you will need to instruct your solicitor at this stage to start acting on your behalf.
Once formally instructed, your solicitor obtains a written authority from you to allow them to take up the title deeds to the property from your old lender and requests up-to-date redemption figures. The old lender may also charge an administration fee before releasing the title deeds to your solicitor.
Upon receipt of the title documents, your solicitor reviews the title to the property and ensures that they hold the requisite title and planning documents to enable them to certify that title is deemed “good and marketable” to the new lender. You must inform your solicitor about any developments carried out to the property since the date of your previous mortgage and they will advise you as to whether any further documents will be required.
If there are any title / planning issues which are capable of being resolved, this will be actioned by your solicitor at this stage, failing which, your solicitor may need to qualify title with the new lender.
Once the loan has been approved by your new lender, the loan offer will be sent directly to your solicitor as part of the loan pack. Upon receipt of the loan pack, all special conditions / conditions precedent are reviewed by your solicitor to ensure that they can be complied with.
The following searches will also be requisitioned by your solicitor against both you and the property: Planning Search, Registry of Deeds Searches / Land Registry Searches to ensure that all acts can be explained prior to loan offer and supporting mortgage documentation being signed. Again this is required to allow your solicitor to certify title as being “good and marketable” to your new lender.
Once the title and mortgage documentation has been satisfactorily reviewed, your solicitor prepares a set of Replies to Requisitions on Title together with the necessary Statutory Declarations in favour of the new lender and arranges for you to call in to the office to sign the loan offer and the supporting mortgage documentation.
The relevant signed documents are then returned to the new lender. Your solicitor follows up with the new lender shortly after this to ensure that all of the new lender’s pre-drawdown requirements have been satisfied and that all is in order to facilitate the release of funds..
In advance of the drawdown of the new mortgage facility, your solicitor requests an up-to-date Redemption Statement from your old lender. Your solicitor then arranges to draw down the new mortgage and requisitions a full suite of closing searches on the day the funds are released. These searches are certified and explained in full and retained with the title deeds.
Upon the drawdown of the new mortgage facility, your solicitor redeems the old mortgage in full. Your solicitor then sends the old lender a letter confirming that the mortgage has been redeemed in full and requests a Deed of Discharge / Deed of Release / e-Discharge to be provided evidencing discharge of the old mortgage.
Your solicitor registers the new mortgage in the Land Registry / Registry of Deeds and once the Deed of Discharge / Deed of Release / e-Discharge has been provided by the old lender, your solicitor will register the relevant deed / e-Discharge in the Land Registry or the Registry of Deeds.
Once the new mortgage has been registered in the Land Registry / Registry of Deeds and the old mortgage has been discharged, the title documents are scheduled / indexed to include evidence of registration of the new mortgage and the discharge of the old mortgage and the scheduled documents are then sent to the new lender together with your solicitor’s Certificate of Title. The title documents will be retained by the new lender until the new mortgage has been discharged in full.
There is no set timeline as to how long a transaction takes to complete and each transaction varies.
Should you wish to discuss the re-mortgage of your property, please contact Robert Simmons or anyone in our Real Estate team for more information.