If you are thinking about re-mortgaging, being prepared is the best way to reduce stress and find yourself a good deal.
You should consider instructing a broker or independent financial advisor before approaching a lender directly for the mortgage. They will be able to search the market for you and find the best deal. Although it may seem simple, it is sometimes not the best option to re-mortgage with your current lender.
Next, apply to the lender you have chosen. If you have decided on an endowment based mortgage then you will have to make an application for an endowment policy with an insurer. An experienced broker or independent financial adviser can give you more advice on taking this option.
You will have to pay your lender a fee to value and/or survey your property. Whilst your property is undertaking a valuation and/or surveyors report your lender will also be seeking financial references for you.
Now you need to find conveyancing solicitors who will handle the legal side of things. It is likely that the lender will ask you for the details of your solicitors so that they can deal with them directly. Your solicitors will require the location of the deeds to the property (which is likely to be with your original lender) and the mortgage account number. They will then proceed to get the deeds in order to examine them.
Your conveyancing solicitors will proceed to check the terms and conditions of the new mortgage from the lender to ensure that it meets all of your needs. Your solicitor should inform you of any special requirements the lender needs you to meet before the money can be paid.
It is likely that your solicitors will treat the re-mortgage like a normal mortgage application and will therefore conduct local authority/land charges searches on the property and check that the deeds are all in order. This information is used to submit a report on the title of the property to the new lender and advise if there are any special conditions needed or any adverse entries have been made since you acquired the property.
Your mortgage deed and any other legal documents are drawn up by the solicitor and forwarded for approval to the lender. Your solicitor should make sure that they have confirmation from your lender that the monies will be received by an agreed deadline.
To conclude, you new mortgage will have to be registered with the land registry and your deeds can then be returned to your original lender.
As you can see from the above the lion's share of the work is conducted by your solicitor, therefore it is really important that you instruct an experienced conveyancing solicitor to deal with your case.