If you’re considering remortgaging your home, you may be wondering whether you need to involve a solicitor. Remortgaging is the process of switching your current mortgage to a new lender, but do you really need a solicitor to help you through the process?
The short answer is yes, you will need a solicitor (or conveyancer) to remortgage. Here’s what you need to know.
Why You Need a Solicitor for a Remortgage
When you remortgage, there are a several legal processes involved. A solicitor ensures that everything is in order from a legal perspective. Here’s how they assist:
- Title Deeds: A solicitor will handle the legal transfer of the title deeds from your current lender to the new lender. This ensures the new lender has the legal right to secure the mortgage against your property.
- Redemption of the Current Mortgage: The solicitor will pay off your existing mortgage using the funds from the new lender. They will ensure that the old mortgage is cleared, and the charge on your property is updated to reflect the new mortgage.
- New Mortgage Terms: The solicitor reviews the terms of your new mortgage, ensuring that everything is legally compliant and there are no errors in the documentation.
- Identity and Money Laundering Checks: A solicitor will carry out checks to confirm your identity and prevent money laundering, which is a legal requirement in the UK mortgage process.
If you’re switching to a new deal with your current lender, this is called a product transfer not a remortgage. A product transfer doesn’t require a solicitor. As the lender remains the same, there is no need for the legal transfer of title deeds or other legal processes.
Can You Use the Lender’s Solicitor?
Many lenders will offer a solicitor or conveyancer as part of their remortgage package. In these cases, you may not need to find your own solicitor, as the lender covers the legal costs. This can be a convenient option, but it’s important to note that the solicitor acts on behalf of the lender, not you. If you require independent legal advice, you may prefer to hire your own solicitor.
How Much Does a Solicitor Charge for Remortgaging?
If you choose to hire your own solicitor for a remortgage, fees can vary. Typically, the legal fees for remortgaging are lower than those for buying a property because the process is less complex. You can expect to pay anywhere from £300 to £600 for remortgaging solicitor fees. Always check with your solicitor for an estimate before proceeding.
Some remortgage products may include a cashback which you could put towards the cost of your conveyancing fees.
Conclusion
A solicitor or conveyancer is required when remortgaging your home in the UK. They will ensure the legal aspects of transferring your mortgage are handled correctly, from paying off your old mortgage to updating the title deeds with your new lender. However, if you’re staying with your current lender, known as a product transfer, there is no legal work and a solicitor will not be required.
Some lenders offer mortgage products with “no legal fees”. The lender will appoint a solicitor to handle the transaction and carry out the legal work on their behalf. In this scenario, you will not usually require a separate solicitor to act for you, unless you would particularly like your own independent legal advice. Be sure to review your remortgaging options carefully, and if in doubt, consult with a professional mortgage adviser or solicitor.
