A legal agreement by which a bank, building society or any other financial institution lends money at interest in exchange for taking a charge over the borrowers’ property, with the condition that the registration of the charge registered on the borrowers’ title is removed on repayment of debt.
A mortgage is often obtained when a person is purchasing a property whether it is a freehold or leasehold property. However it is likely that one of the following events can occur whereby you would wish to remortgage your property to take advantage of the benefits which they offer:
- Obtaining a better interest rate
- You simply wish to switch to a more flexible term,
- A current mortgage term coming to an end, or
- You wish to make an overpayment to your current mortgage.
Remortgaging is where you are paying off one mortgage lender with the proceeds from a new lender, who will replace the charge over your property.
Remortgaging a leasehold property can be slightly more complex. This includes reporting to the lender on aspects of the lease to ensure that it complies with the requirements of the lender. The lender will also want confirmation from the managing agents or landlords for evidence that all ground rent and service charges are paid. In most cases, lenders will also request to see a copy of the buildings insurance.
Our conveyancing department will provide you with a straightforward, quality, stress free service throughout the whole transaction. Our team will deal with the whole process right from receiving your mortgage offer, reporting to you, redemption of your existing mortgage, accounting to you the proceeds of your new mortgage to registration at the Land Registry.