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Remortgaging Cost and Mortgage Solicitor

UK properties are popular and the UK property market is very competitive. Buying a property in the UK requires a legal process to be followed very swiftly and quickly. The process is known as conveyancing and is done by conveyancing solicitors and solicitors. They are lawyers by profession. Moreover, there are many options through which a property can be bought. From these options, one is mortgage. In the previous articles, we discussed the different types of cost when buying a property with mortgage and also shed light on how mortgage solicitors help to get conveyancing done and give proper advices.

In the following article, we will discuss the remortgaging cost of conveyancing and how mortgage solicitor help conveyance a property that needs remortgaging.

Remortgaging basics

Remortgaging is when you pay off the existing mortgage and shift to another lender. There are many reasons to why you may require remortgaging but we will not be going into details on that. For detail guideline and information regarding remortgaging, check out our other remortgaging articles available.

Remortgaging helps to get the best value out of your property. It also helps you to get a better mortgage deal and it makes sure that you get more benefit in the long run. In this article, we will discuss the cost of remortgaging which are divided as follows.

Remortgaging cost

The early repayment charge is paid to your current mortgager. It is a penalty fee which is applicable when you repay your mortgage or overpay is more than it is allowed during a tie in period. The tie in period is usually the time that you are on the initial deal. In other words, this fee is to be paid because you are breaking the deal before the fixed time. It is a loss for the lender and so the lender has to be paid this fee.

The cost is usually a percentage of the mortgage debt and this cost goes down as the mortgage time period nears completion. You have to ask your mortgage solicitor to calculate what the amount of repayment charge is that you need to pay. Or you can calculate it yourself. Another objective of remortgaging is to find a deal where this fee is lower than the current deal.

The repayment charge can be paid in two ways. First, you can pay it up front as cash and the other way is to pay it with the mortgage fee that you are applying for from the new party who is giving you the mortgage. If you plan to choose the latter then there is the possibility that the loan-to-value ratio will increase and your expenses too.

On the other hand, if you plan to ditch it then you have to get a remortgage only after your current deal with the current mortgager ends. It is imperative to make sure you do not commit an error when doing this and your mortgage solicitor must know the exact dates when this period ends.
The other fee that remortgaging requires is the exit fee. Also known as the “deeds release fee” or an “admin charge” – this fee is to pay for the process where your current lender forwards your title to the new lender. It is usually paid up front when you are making the mortgage deal happen. Also, the other option is to pay it at the end of the mortgage time period. No interest needs to be paid when paying this fee so you can pay it at the end of the deal. The admin charge is usually at least three hundred pounds or so.

Your solicitor will always help you regarding these deals and their help is required when remortgaging occurs. The reason is that lenders tend to be more demanding during this time and ask for more than what was asked during the first time the deal was struck. The best thing is to always check your paper works and let your mortgage solicitor know of the details so that the lender cannot make demands that are unnecessary to you. In these few articles, we focused on the costs of mortgaging. In the next article, we will discuss remortgaging in details and what are the paper works necessary for it. For the best property conveyancing in the UK, including mortgage and remortgage, it is best to check out Nigel Broadhead Mynard Conveyancing Solicitors to get the best deal for your property.

Posted by on 15/07/2016 in Mortgages

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