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Finance and ownership

Remortgage

Switching your mortgage to a new lender or borrowing more, with title checks, repayment of the old loan and registration of the new one.

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Every cost on its own line: the law firm's legal fee, VAT, the searches and other third-party costs, and any property tax. Your quote opens as soon as you send the form.

Time completion for just after your current deal ends. Completing too early can mean an early repayment charge, and too late can mean a spell on the standard variable rate.

Remortgaging means replacing your current mortgage with a new one, usually to get a better rate when a deal ends, to borrow more for home improvements or to change the terms of your loan. When the new mortgage is with a different lender, a conveyancer is needed to check the title, repay the old lender and register the new mortgage, known as the new charge, at HM Land Registry.

This service is for freehold homes. If your home is leasehold, see leasehold remortgage, and if someone is joining or leaving the title at the same time, see transfer of equity. Switching to a new deal with your existing lender does not usually need a conveyancer.

Your instant quote asks for the new loan amount, because the HM Land Registry fee for registering a mortgage is based on the amount borrowed. If you go ahead, Keyfolio introduces you to a regulated law firm on your new lender's panel.

What is involved

A remortgage usually runs in this order:

  • Instruction: identity checks and confirmation of who owns the property and who is borrowing.
  • Title check: obtaining the title from HM Land Registry and looking for anything the lender must know about, such as a second charge, a restriction, or an adult living in the property who is not on the mortgage.
  • Searches: carrying out the searches the lender requires, or arranging search insurance where the lender accepts it.
  • Mortgage offer: reviewing the offer and its conditions, such as a requirement to repay named debts from the new loan.
  • Redemption statement: asking your current lender for the exact figure needed to repay your mortgage, including any early repayment charge.
  • Signing and certificate of title: you sign the mortgage deed, and the conveyancer confirms to the lender that the title is acceptable and requests the funds.
  • Completion: the new lender sends the money, the old mortgage is repaid the same day and any surplus is paid out as you have instructed.
  • Registration: the old charge is removed and the new charge is registered at HM Land Registry.

What the legal fee covers

  • Identity checks on each borrower and owner
  • Checking the title and any existing charges or restrictions
  • Reviewing the mortgage offer and meeting its conditions
  • Obtaining a redemption statement from your current lender
  • Reporting to the new lender and requesting the funds
  • Repaying your current mortgage on completion
  • Paying out any extra money to you or to the creditors named in the offer
  • Registering the new charge and removing the old one

Costs you may see on top

  • The HM Land Registry fee for registering the new mortgage, based on the amount borrowed
  • The Land Registry search and a bankruptcy search for each borrower, which lenders require
  • Property searches, or search indemnity insurance where the lender accepts it
  • A fee for acting for your new lender
  • Early repayment charges or exit fees payable to your current lender
  • Identity checks and the bank charge for sending money
  • An admin fee if the title is unregistered

What to have ready

  • Your new mortgage offer, or the application reference
  • Your current lender's name and account number, plus details of any second charge
  • Photo identification and proof of address for each borrower
  • Names of any adults living in the property who are not borrowing
  • Bank details for any extra money you are raising
  • Your preferred completion date, ideally just after your current deal ends

How long it takes

A remortgage commonly completes in 4 to 8 weeks once the mortgage offer is issued. Simple cases with a clean title and no special conditions can be quicker, while a second charge to repay, an unregistered title, a slow redemption statement or conditions in the offer, such as paying off debts, can add time. If your current deal is ending, start two to three months beforehand so you do not slip on to your lender's standard variable rate.

Things to watch for

  • Check the early repayment charge on your current mortgage. Completing even a few days before your deal ends can trigger it, so time completion carefully.
  • If an adult who is not borrowing lives in the property, the lender will usually ask them to sign a form agreeing that the mortgage takes priority over any rights they have.
  • If you are raising extra money, the lender may require some of it to be used for a stated purpose, such as repaying named debts, and your conveyancer must follow those instructions.
  • Some lenders offer free legal work on remortgages through their own panel firms. Check what it covers and how easy it is to reach someone before choosing it.
  • If anyone is joining or leaving the title at the same time, tell your conveyancer and lender at the start, because it becomes a transfer of equity.

Questions people ask

Do I always need a conveyancer to remortgage?

Not always. If you stay with your current lender and take a new product, known as a product transfer, there is usually no legal work. You need a conveyancer when you move to a new lender, borrow more from a different lender or change who owns the property at the same time. Our remortgaging guide explains the options.

How is HM Land Registry fee worked out?

HM Land Registry charges a fee for registering a mortgage, and on a remortgage the fee is based on the amount you are borrowing rather than the value of your home. Your quote asks for the new loan amount so it can show the right fee as a third-party cost, separate from the legal fee.

Can I remortgage to release money?

Yes, if the new lender agrees to lend more. Your conveyancer repays your existing mortgage from the new loan and sends the balance to you, or to anyone the lender requires to be paid, such as a credit card company. Lenders often ask what the money is for, and any conditions in the offer must be met before completion.

What happens on completion day?

Your new lender sends the money to your conveyancer, who uses it to repay your current mortgage the same day. Any extra borrowing is then paid out as agreed. Your payments start under the new mortgage, and the conveyancer arranges for the old charge to be removed from the register and the new one added.

Who does the work

Your matter is handled by a law firm regulated by the Solicitors Regulation Authority, the Council for Licensed Conveyancers or CILEx Regulation, or in Northern Ireland by a solicitor regulated by the Law Society of Northern Ireland. At the moment the law firms on our panel act for property in England and Wales, so for property in Northern Ireland we tell you whether a firm can act for you before we pass your details to anyone. The firm confirms who will work on your file, their experience and its terms before you instruct it. How we choose our firms.

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