There are several pitfalls or issues that customers face when remortgaging, but most can be prevented or eased with a bit of forward planning. Not sure if remortgaging is right for you? Check here to see if you should remortgage.
Our top tips:
Undergoing ID checks
Be prepared to undergo ID checks with both your mortgage provider and your conveyancer or solicitor. This will be to meet the specific fraud and anti-money laundering regulations of each organisation. Some customers lose a few days in the process here by questioning why they need to provide ID again and go through checks – but if you’re prepared and have your documents ready it could save you some time.
For a standard remortgage, our job is to act on behalf of both yourself and your mortgage lender. We’ll ensure that the necessary work is done on your behalf, but we also have a duty to make sure that everything complies with the specific terms or requirements of your new lender. Bear this in mind in any discussions you have with your conveyancer.
Remortgaging a leasehold property can become tricky when it comes to involving management companies. Management companies are unregulated and generally operate with their own timeframes and fee scales. It may be that one management company will respond within 2 weeks but another may take 8 weeks, with varying fees involved – these fees are then passed to you as disbursement charges. Our top tip is to prepare for this and contact your management company as early in the process as you can to find out how much they will charge and what timescales you are looking at for the provision of the necessary information – maybe even before you instruct a conveyancer. This could get you ahead of the curve and save you some time – and will also allow you to budget for the fees that the management company will pass on to you. Don’t actually request a pack from the landlord until you have discussed it with your lawyer, however, as you run the risk of duplication, or if there’s a delay for any reason the pack may expire meaning you’ll have to pay for a second one.
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Disclaimer: This article is for informal and general advice on remortgaging