Common Questions
How long will it take to complete my transaction?
This is usually the first question which is asked and is difficult to answer as all transactions are different. A usual estimate for a remortgage would be 4-8 weeks. We will do what we can to complete your transaction as quickly as possible.
How do you keep me informed?
We will endeavour to keep you informed at all stages of the progress of your transaction. If at any time you have any queries, please do not hesitate to telephone (01922 665050) or email us (benh@mortgageforce.co.uk).
Why do I have to provide my identification documents?
We are required under Money Laundering Regulations to verify your identity to guard against money laundering and fraud. Where you are purchasing with a mortgage, we are also required to verify identity as part of our instructions. Photo ID such as a passport or driving license is required as a minimum.
When will I receive the balance money from my remortgage?
Money will be transferred on the day of completion from your solicitor.
What happens on completion?
When your solicitor has finalised a completion date you may be asked for relevant funds for fees / costs to complete your mortgage.
Who will pay off my mortgage?
When a completion date is agreed, your solicitor will obtain a redemption statement. Provided there is no shortfall (where the proceeds of a sale/remortgage will not cover the redemption figure) your solicitor will arrange for your exisiting mortgage to be repaid on completion.
When should I stop my direct debit payments for my current mortgage?
You should not stop your direct debit payments until you have been advised that the transaction has completed.
What is a Transfer of Equity?
Sometimes when a property is remortgaged it is also necessary to carry out a "Transfer of Equity". This will be necessary where the names of the registered owners of the property differs from the names on the new mortgage. A Transfer of Equity is merely the process of adding or removing someone's name from the legal title.
Do people who will occupy the property have to sign an occupier's consent form?
This will usually be a requirement where there is a mortgage and there will be adult occupiers in the property who are not owners. This will be a requirement of your lender as it is possible for occupiers to obtain rights in a property. By signing the consent they are confirming that if you default on the mortgage, they will vacate the property. They may be required to seek independent legal advice before signing the consent.
What happens to my deeds following completion?
Following completion your transaction will be registered at the Land Registry. The Land Registry should keep copies of all necessary documents of title and therefore in the majority of cases anything required for a future sale can be obtained from them.
Re-Mortgages Explained
Re-mortgages are a common way for people to improve their mortgage situation and make it more acceptable and affordable. If you’re considering such an option, it’s vital you know as much as possible before making such a decision.
What Is A Re-Mortgage?
At its very simplest, a re-mortgage can be described as transferring from one mortgage to another. However, there are a few more technical details that need to considered. Because a mortgage is a form of loan, the original mortgage needs to be paid off. This is achieved by using the funds gained from the secondary mortgage.
Because so much of remortgaging is based on property value, remortgages typically retain the property as collateral. In this area, they work exactly like typical mortgages but, while you receive equity based on the value of your property, remember that some of this must go towards paying off the previous mortgage from the previous lender.
How Do They Work Compared To Other Mortgages?
The key difference with remortgaging is that it transfers the mortgage from one lender to another. During this process, some of the value is used to pay off the original loan. A remortgage, consequently, isn’t commonly used to generate immediate profits, as a typical mortgage or equity release would be used for.
It’s also vital to stress that remortgages happen between different lenders. When moving between your existing lenders products or services, this is not a remortgage, as the loan is still taken out with the same company and hasn’t been paid off in favour of an entirely new service.
When Would Someone Want To Remortgage?
There can be numerous reasons to remortgage but the most common reason is to gain better terms on a remortgage. If your current mortgage plan, for example, is unsuitable and cannot be changed, a remortgage allows you to switch to a more suitable lender.
This can include, for example, smaller payments to make monthly costs more manageable or, indeed, larger payments to reduce the overall repayment period. In other words, remortgaging can allow people to find a better payment plan that suits their needs.
In other cases, it can also be used to raise capital; for example, if you’re near the end of your current mortgage, remortgaging can give you access to the additional funds from your property. Of course, in situations like this, it can result in effectively paying more money overtime, depending on the nature of your remortgage.
Why Is a Mortgage Advisor Crucial?
Just like a mortgage, remortgaging is an important decision that shouldn’t be taken lightly, especially as it involves both your finances and your home. Consequently, a dedicated and expert mortgage advisor can help guide you through the options available to provide the best option for your personal situation.
At Mortgage Force West Midlands, we can advise you on available remortgage options to help you meet your goals, whether its to gain access to needed capital, reduce monthly payments on your mortgage or even pay it off earlier. This expert advice can cover every angle and ensure you make a fully informed decision.
