Sunday, 23 January 2011

Looking to Re-Mortgage? Q&A


What you should consider
When you decide to re-mortgage you will need to have a Solicitor to carry out the legal work involved. Your bank or building society will allow you to choose a Solicitor of your choice. Your choice of Solicitor will influence how quickly and efficiently your transaction is carried out.
How much will it cost?
Our prices start at £250 plus VAT
What do you need to do next?
You will need to make a mortgage application to your chosen bank or building society. We have established links with a number of Independent Financial Advisor's that are available to assist you in finding the right lender for you if you wish.
It is important for you to check how much is outstanding under your current mortgage and whether or not there is any penalty payment if you discharge your mortgage early.  If in doubt please ask your advisor or new lender to check.
Once a suitable lender has been chosen, you will be required to pay a valuation fee to your new lender who will arrange for a surveyor to visit your property, meanwhile the lender will take up financial references. If you are planning an endowment-based mortgage you will make your application for an endowment policy to an insurance company. Your lender or financial adviser will assist you with this. You may choose to use your already existing policy if you have one.
As you make your mortgage application you will be asked to nominate a Solicitor to deal with the legal paperwork. At this stage you should contact us to let us know we are to deal with the matter and to tell us the present whereabouts of your deeds. These will normally be with your existing bank or building society and it is useful if you can give us your mortgage account number.
What we will do to help you?
When you have received your mortgage offer you should return any documents that the lender sends you to sign to the lender immediately. At this stage, we would normally receive the paperwork from the lender. We shall then do the following-:
1. Check the terms and conditions of the mortgage offer to ascertain whether there are any special requirements that need to be complied with. For example, the lender may require certain work to be done to the property before the money can be released.
2. Check your title deeds to make sure they are in order and to enable us to assure your new lender that all the details of the property on the mortgage instructions are correct.
3. Conduct a local search of your property if your new lender requires it. The cost of this search varies from local authority to another.
4. Submit a `report on title' to your new lender to advise if there are any problems with the title deeds or with any of their special conditions.
5. Prepare your mortgage deed and any associated documents that your lender requires you to sign and we arrange for your signature to these.
6. Conduct a Bankruptcy Search for each borrower. This is to satisfy the Lender that you are not bankrupt. A Land Charges Search will also be carried out to ensure that no adverse entries have been made against the property.
7. Ask you what date you would like to complete your re-mortgage and then obtain a redemption figure from your present lender. The redemption figure is the amount that is required to pay your existing mortgage off. We must also redeem any other lending secured on your property.
8. Complete a Certificate on Title and also to request your mortgage advance in sufficient time for completion. You must ensure that your lender or financial adviser has put any new endowment policy "on risk".
9. Register your new mortgage at the Land Registry and finally return your deeds to your new lender after the registration is complete.
For further detail please contact David Pett on 01603877004 or e-mail davidpett@m-j-p.co.uk

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