Remortgaging: the legal work behind your new deal

What a remortgage involves

A remortgage means replacing your current mortgage with a new one from a different lender, for example to get a lower rate or to borrow more. The new lender needs a conveyancer to check that your home is suitable security (the asset the lender can rely on if the loan is not repaid), repay the old mortgage and register the new one.

If you stay with your current lender and simply move to a new deal, known as a product transfer, there is usually no conveyancing to do. Your mortgage adviser can tell you which route suits you, and our remortgaging guide explains the differences. MoneyHelper also has free guidance on whether switching is worthwhile.

The legal steps

Your conveyancer usually acts for both you and the new lender. The work typically includes:

• checking your identity and the title, the official record of who owns the property
• reviewing the mortgage offer, the lender's formal agreement to lend, and meeting its conditions
• carrying out any searches the lender requires, or arranging an insurance policy it accepts instead
• obtaining a redemption statement from your current lender, showing exactly what is needed to repay the old mortgage on a given day
• asking you to sign the new mortgage deed
• on completion, receiving the new loan, repaying the old one and sending any balance to you
• registering the new mortgage, and the removal of the old one, at HM Land Registry or the registry for your part of the UK

For example, if you remortgage for £200,000 and owe £180,000, the old lender is repaid in full, including interest up to that day, and what is left, less any costs you have agreed to pay from it, is sent to you.

What it costs

Your quote lists each cost separately:

• the legal fee, including the work of acting for your lender
• HM Land Registry's fee for registering the new mortgage
• an official search of the register, and a bankruptcy search for each borrower, which lenders require
• identity checks and the bank charge for sending money
• for a leasehold, any fees the landlord or managing agent charges to be told about the new mortgage, marked to be confirmed
• VAT, where it applies

Your new lender's arrangement and valuation fees, and any early repayment charge or exit fee from your current lender, are separate. Some lenders offer to pay legal costs or give cashback on a straightforward remortgage. Compare that offer with your quote, and check what each one includes.

Changing who owns the home

A transfer of equity means adding someone to the ownership of your home, or removing someone, for example after a marriage or a separation. It is often done alongside a remortgage, and your lender must agree to it.

Taking on a share of the mortgage can count as paying for a share of the home, so property tax can be due even when no money changes hands. Transfers made under a divorce or separation agreement or court order are usually exempt from Stamp Duty Land Tax. GOV.UK explains the rules, and your conveyancer checks the position for your transaction.

Get a transfer of equity quote or read our transfer of equity guide.

What to have ready

Gathering these at the start helps the work move quickly:

• your mortgage offer, or your new lender's name and your broker's details
• your current lender's name and your mortgage account number
• details of any other loan secured on the property, such as a second charge (a further loan secured on your home) or a Help to Buy equity loan, as these need extra steps
• photo identification and proof of address for each borrower
• the names of any other adults living in the property, because many lenders ask them to sign a form agreeing that the lender's rights come first
• for a leasehold, the lease and the landlord's or managing agent's contact details
• the date your current deal ends

How long it can take

Once the mortgage offer is issued, a remortgage commonly takes 4 to 8 weeks. Leasehold properties, titles not yet registered at HM Land Registry and lender conditions, such as a requirement to carry out repairs, can add time.

Start early. Many lenders let you arrange a new deal some months before your current one ends, which gives the legal work room to finish in time. Completing before your deal ends can trigger an early repayment charge, so choose the completion date with care.

Common pitfalls

Watch out for these:

• Leaving it too late, so you move onto your lender's standard variable rate, its default rate that is often higher, while the paperwork catches up.
• Overlooking an early repayment charge or exit fee.
• Not mentioning a change of name, a new owner or someone else living in the property.
• Forgetting a second loan or equity loan secured on the home.
• Using a firm that is not on your new lender's panel, the list of firms the lender allows to act for it. Tell us your lender when you get a quote and we will match you with a firm on its panel.

Next steps

Get an instant remortgage quote, or a leasehold remortgage quote for a flat or other leasehold home. It takes a few minutes and there is no obligation.

Releasing money from your home in later life is a different product with its own legal requirements. See our equity release service to request a tailored quote.