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Mortgage / remortgage - Frequently asked questions

• I am thinking about a mortgage or re-mortgage, whom should I consult?
• How long will it take to receive the firm offer of mortgage?
• I have heard of early redemption penalties - what does this mean?
• Will I need life insurance?
• Is it wise to re-mortgage?
• I now have a partner and wish to increase my mortgage. What should I do?
• Will you have to carry out a local search?
• What information do you need when I instruct you?

I am thinking about a mortgage or re-mortgage, whom should I consult?

There is a bewildering array of packages available from mortgage lenders, estate agents, banks, financial advisors and consultants. Unfortunately most are not truly independent and many are selling you only their own products. However, as solicitors we are truly independent and have a duty to provide you with the best combination of services to suit your needs. Whilst we cannot give you specific mortgage advice, because of the Financial Services Act, we can recommend you to a number of completely independent financial advisors who will be able to help you make the most suitable choice.

How long will it take to receive the firm offer of mortgage?

The average time is approximately 4 weeks although lender requirements vary. Remember you need to ensure that all the lenders questions, references etc are returned promptly.

I have heard of early redemption penalties - what does this mean?

In order to give a low rate for your mortgage borrowing some lenders require you to be 'tied in' to their products for a given length of time. If you wish to change or pay off your mortgage within that time, they may make this early redemption charge. As explained earlier, a truly independent advisor will ensure you fully understand this kind of arrangement.

Will I need life insurance?

Not necessarily although some lenders may require it. You should discuss the implications with us, as the mortgage is repayable if you die.

Is it wise to re-mortgage?

In today's rapidly changing financial market it can often be beneficial, but do seek professional advice before making any changes to your current arrangements. Your existing lender can often be approached with advantage. You should bear in mind there will be some additional cost in obtaining a re-mortgage.

I now have a partner and wish to increase my mortgage. What should I do?

You will usually need to transfer the property into joint names in order to have the mortgage in joint names as the loan attaches to the property rather than the person. We can deal with the property transfer in addition to the mortgage work.

Will you have to carry out a local search?

Yes, in most cases, but some lenders accept a form of insurance upon re-mortgage if you have always lived in the property yourself.

What information do you need when I instruct you?

• Your full details and in particular the full names of all legal owners of the property
• The whereabouts of your deeds and particulars of any mortgages or loans on the property to include mortgage account number and details if applicable. The Land Registry title number if you have it.
• Any specific details of the property such as any letting, ground rent, rent charge etc
• The full details of the current lender and any new lender.
• If you have altered or extended your property we will need copies of all planning permissions, building regulation and if applicable listed building consents, correspondence, guarantees etc
• We would need to know if you are also purchasing a property.
• You will have to provide us with some evidence of identification. This is usually passport or driving license.
• If the property is tenanted, a copy of the Tenancy Agreement.

We will then send you a more detailed questionnaire about your property to complete and return to us.