A Conveyancing Solicitor Briefly Describes The Remortgage Process

Firstly we will discuss about the procedure of Remortgage. When a client’s mortgage deal is coming to an end, they may want to shop around for a new product – this is known as a remortgage. Staying with the current lender after the end of the agreed term of the client’s mortgage will be a matter for negotiations with the mortgage lender. If the existing mortgage lender is willing to offer a rate that is relatively eye-catching, the client may not want to bother remortgaging. If the client, however, has a lot of equity in his property then he may well be able to remortgage onto a more attractive interest rate and even release some of the equity in the property. Now you may be wondering what is ‘equity’, equity is the difference between the market value of the property and the value of the mortgage against the property. For example if your property is worth £250,000 and you have a mortgage of £100,000 against; the property the equity in the property is £150,000. However when you go to remortgage your property you will not be able to realise all of the equity in the property. (more…)