Do I Need a Conveyancer for a Remortgage?

Remortgaging can be a smart financial move for many homeowners. Whether it's to take advantage of lower interest rates, switch mortgage products, or release equity from your home, it's a common step.

However, one question that often arises is, "Do I need a conveyancer for a remortgage?" The answer depends on the nature of your remortgage and your lender’s requirements.



In this blog, we'll explore the scenarios where you might need a conveyancer and what they actually do during the remortgaging process.

What is Remortgaging?

Remortgaging is the process of replacing your existing mortgage with a new one. You might choose to remortgage with the same lender, which is often called a "product transfer," or with a different lender for a better deal.

The process of remortgaging can vary in complexity depending on the type of mortgage you have and whether there are any changes in ownership involved.

Will I Always Need a Conveyancing Solicitor When Remortgaging?

The short answer is no - you won't always need a conveyancer for a remortgage. In specific situations, the legal aspects of the remortgage process may be minimal or even non-existent. Here are the key scenarios:

1. If You Stay with the Same Lender (Product Transfer)

If you're sticking with your current mortgage lender but switching to a new product, such as a different interest rate or repayment term, it's considered a product transfer. In this case, no legal work is required, and you won’t need a conveyancer. Your lender handles everything internally, and you simply agree to the new terms.

2. If You're Borrowing More (Mortgage Advance)

If you’re increasing the amount you borrow through a mortgage advance with your current lender, no legal work is needed for the remortgage itself, but there could be additional fees and adjustments related to the loan. Again, no conveyancer is needed for this type of transaction.

3. If You're Switching to a New Lender

In most other cases, such as switching from one lender to another, you will need a conveyancer or solicitor to manage the legal side of things. They will ensure that the new mortgage is properly registered and that the old mortgage is discharged.

What Does a Conveyancer Do in a Remortgage?

While remortgaging is generally simpler than buying a property, there’s still some legal work that needs to be done. This includes:

1. ID Checks

Your solicitor will ask for proof of identity to comply with money laundering regulations. This is a standard part of the process and helps protect both you and the lender.

2. Current Mortgage Details

Your solicitor will contact your current lender to get a "redemption statement." This shows how much is left on your mortgage and any potential fees for paying it off early, such as early repayment charges.

3. Title Deeds and Property Checks

They will check the property’s title to ensure it’s legally clear and verify that any conditions of your new lender (such as lease terms for leasehold properties) are met.

4. Searches and Valuation

Although less common for remortgages, some lenders may request property searches, particularly if you're changing lenders. The new lender will likely want a fresh valuation of the property, which is often part of their process before offering the mortgage.

5. Bankruptcy and Priority Searches

The conveyancer will carry out a bankruptcy search to make sure you’ve never been declared bankrupt. They’ll also complete a priority search at the Land Registry to ensure nothing has changed with the property’s deeds since starting the remortgage process.

6. Mortgage Offer and Fine Print

Once your new lender has valued the property, they’ll issue a formal mortgage offer. Your conveyancer will check the terms, raise any concerns, and help you understand the details before you sign the mortgage deed.

7. Completion

On the completion day, your solicitor will receive the funds from your new lender, pay off your old mortgage, and settle any fees. If there’s any remaining money (in the case of a mortgage advance), this will be transferred to you.

8. Registering the New Mortgage

Finally, your conveyancer will inform the Land Registry of the remortgage and update the legal title to reflect the new mortgage.

What Are the Costs of Using a Conveyancer for a Remortgage?

If you need a conveyancer for your remortgage, it’s important to be aware of the potential costs. On average, conveyancing fees for remortgaging range from around £300 to £500. Other potential costs include:

• Land Registry fee: £20-£65 (depending on the value of the property)
• Bankruptcy search: £2
• Priority search: £3
• Official copy of the title: £3-£12

These fees can vary based on your property’s value, location, and the complexity of the remortgage.

Can Legal Fees Be Added to My Remortgage?

In most cases, legal fees are paid upfront, and they cannot be added to your remortgage. However, many lenders offer remortgage deals with free legal services. It’s worth checking with your lender to see if this is included in your deal. If not, you’ll need to pay the legal fees separately.

Should I Use My Lender's Conveyancer?

When remortgaging, some lenders will provide a conveyancer as part of their package. This can be beneficial if the service is free or if you don’t want to go through the hassle of finding your own solicitor.

However, it’s important to note that you don’t always have to use the lender’s conveyancer, especially if you’re paying for the service. If that’s the case, you can shop around for better deals.

Not all lenders work with all conveyancers, so it’s crucial to confirm that your chosen solicitor is approved by your new mortgage lender.

Related:

Can a property buyer and seller use the same solicitor?

How Long Does the Conveyancing Process Take?

What is a Notice of Transfer Fee?

What is a Deed of Covenant?

What is Search Indemnity Insurance?

What are Local Authority Searches?

What is a Deed of Surrender?

Is a Deed of Surrender Necessary?

Adding or Removing a Name from the Mortgage

One of the common reasons people remortgage is to add or remove someone from the mortgage, such as a partner or spouse. This process, known as a transfer of equity, requires legal assistance as it changes the ownership of the property. In these cases, you will definitely need a conveyancer to update the deeds and ensure the legal ownership is correctly recorded.

Final Thoughts

So, do you need a conveyancer for a remortgage? In most cases, yes - particularly if you're changing lenders, borrowing more, or making changes to the property’s ownership.

While it might seem like an additional cost, using a solicitor or conveyancer ensures that the legal side of your remortgage is handled correctly and avoids any complications down the line.

If you're remortgaging with your current lender and just switching products, you can likely skip the legal work. But in more complex situations, having a conveyancer on hand is essential for a smooth process.

Before starting your remortgage journey, it’s worth checking with your lender if they offer free legal services as part of their remortgage package. If not, shop around for conveyancers who are experienced with remortgages and can offer competitive rates.

By understanding when you need a conveyancer and what they do, you can ensure a hassle-free remortgage and focus on getting the best mortgage deal for your needs.