Do You Need a Solicitor to Remortgage?

A remortgage involves switching to a new mortgage deal with a different lender. As a result, there is legal work that needs to be completed before your new mortgage can be completed.

In this article, we explain exactly what a remortgage solicitor does, how much you could pay in solicitor fees and take you through the legal process step-by-step, so you know what to expect when you remortgage. Let’s begin.

What Does a Solicitor Do During a Remortgage?

The solicitor’s main role is to ensure that the legal side of your remortgage is completed correctly and that your new lender can register its interest in the property.

If you are using a lender-provided legal service, the appointed solicitor will generally act for the lender. In the case that you choose to appoint your own solicitor, they will normally represent both you and the lender, provided they are approved by that lender.

What Legal Work Does a Remortgage Solicitor Complete?

There is less conveyancing involved in a remortgage than when buying or selling a home, but several legal checks will still need to take place. Much of this will actually happen behind the scenes, with your solicitor dealing directly with your current lender, new lender and HM Land Registry.

To provide you with an overview of the work involved, a remortgage solicitor will typically:

• Check the property title: Your solicitor will confirm that you are the registered owner and check the title for restrictions or other issues that need to be dealt with before the remortgage can be completed.
• Review your new mortgage offer: Once the offer is issued, the solicitor checks the lender’s legal instructions and any conditions that need to be met before it will release the funds.
• Request a redemption statement: Your current lender needs to confirm the exact amount outstanding on your mortgage. This figure is used to make sure the existing loan is repaid in full when you remortgage.
• Finalise completion: On the agreed date, the new mortgage funds are sent to the solicitor. They use these funds to repay your existing lender. If you are borrowing additional money as part of the remortgage, any remaining funds will then be transferred to you.
• Update the Land Registry: After completion, the old lender’s charge is removed and the new lender’s charge is registered against your property.

While this list shows a standard process, not every remortgage will be straightforward. For example, if you are changing the legal ownership of the property at the same time, your solicitor will also need to deal with the transfer of equity. This can make the process more involved and could result in additional fees.

When Do You Not Need a Solicitor?

In the case of a product transfer, both the lender and mortgage charge will remain the same. Because you are staying with the same lender, there is no existing mortgage to repay to another lender or a new lender to register with HM Land Registry. As a result, the legal work that is required for a standard remortgage does not apply.

It’s important to understand that there is a clear difference between a remortgage and product transfer. With a product transfer, you’re switching to a new mortgage deal with the same lender. While this can be a much quicker and simpler option, you will be limited to the mortgage deals offered by your existing lender.

By comparison, remortgaging allows you to consider deals from other lenders, which could give you access to a more suitable rate or mortgage product. The trade-off is that you will need to complete a new mortgage application and the legal work required to move your mortgage to the new lender.

How Much Are Remortgage Solicitor Fees?

The amount you pay will depend on the solicitor you use, the property and whether your remortgage requires any additional legal work. The total legal fees for remortgage can also include charges for electronic ID checks, Land Registry fees, obtaining property deeds and other disbursements.

You may not always need to arrange or pay a solicitor directly. Many lenders today offer a free standard legal package when you remortgage, with the legal firm appointed on their behalf.

Alternatively, a lender may offer a cashback incentive that you can put towards the cost of appointing your own solicitor. However, the amount offered can vary between mortgage products.

It is important to check exactly what a lender’s legal package will cover before deciding on a deal. For example, if your remortgage involves additional work, such as changing the names on the property title through a transfer of equity, this may fall outside the standard legal services offered by the lender. In this case, you may need to appoint your own solicitor or arrange the additional legal work separately.

When comparing remortgage deals, look beyond the interest rate and ensure that you consider the overall cost of switching. Solicitor fees are only one of several potential remortgaging costs, alongside arrangement fees, valuation fees and any early repayment charge on your existing mortgage.

Looking at these costs side-by-side will give you a much clearer picture of which deal offers the best overall value. A mortgage broker can help you make this comparison by considering the different rates, fees and incentives available across your remortgage options.

What Is the Legal Process for Remortgaging?

In most cases, the legal side of a remortgage will be relatively ‘hands-off’. In practice, your solicitor should complete much of the work directly with your existing and new lenders. However, there are a few things that you will need to provide along the way.

To make the legal process easier to follow, here’s what you can expect at each stage:

1. Complete the Initial Documentation

Once your solicitor or conveyancer has been instructed, you will normally be sent a form to complete. This will include questions about your existing mortgage, the property and its ownership.

You will also need to provide identification for the required ID checks and, once available, sign the mortgage deed for your new lender. Your solicitor will let you know if there are any additional documents or information that is required from you.

2. Your Solicitor Completes the Legal Checks

After you have provided all the initial information, your solicitor can then work through the legal requirements for the remortgage. This will typically include reviewing your information and completing the necessary ID and property title checks. They will also make sure that all of the lender’s legal requirements are in place.

At this stage, your solicitor will also request a redemption statement from your existing lender. This will confirm the amount that is outstanding and will need to be repaid to clear your current mortgage when the remortgage completes.

3. The Remortgage Is Prepared for Completion

Once the legal checks are complete and your mortgage deed has been signed, your solicitor will make the final arrangements for your remortgage to complete.

On the agreed completion date, the new lender will send the mortgage funds to your solicitor. These funds are used to repay the outstanding balance of your existing mortgage, before the new lender’s charge is registered against the property.

Can a Mortgage Broker Help Me Find a Good Solicitor?

When arranging your remortgage, your broker will be able to explain whether the mortgage deal you have chosen includes a free legal service, or whether you will need to appoint your own solicitor.

In the event that you need to arrange your own solicitor, a mortgage broker may recommend a solicitor or conveyancer, but they will need to be approved by your new lender if they will be acting on the lender’s behalf as well.

At Boon Brokers, our dedicated advisers will be there to support you throughout your remortgage. With access to mortgage products from across the market, we can compare your options and help you find a remortgage that is suitable for your circumstances.

Our mortgage advice and broker service is completely fee-free, so you won’t pay us a broker fee for helping you arrange your remortgage.

As part of this, our experts can explain whether a mortgage deal includes free legal services or cashback towards your legal costs and, if you need to appoint your own solicitor, help you explore all the options that are available to you.