Remortgaging can be a smart financial move – for example, if you’re looking for a better interest rate, consolidating debt, or releasing equity. 

However, overlooking key legal considerations can lead to unexpected costs, delays, or complications.

Here are some of the most common mistakes homeowners make when re-mortgaging, and how to avoid them.

Assuming the process is the same as buying a home

Many homeowners mistakenly believe re-mortgaging is as straightforward as switching lenders, but it still involves a legal process.

As your solicitor, we will need to carry out title checks, confirm there are no outstanding charges on the property, and handle the legal transfer of funds between lenders.

Speak with us early in the process to ensure there are no unexpected legal complications.

Overlooking restrictions on your property title

If there are legal restrictions on your property title, such as a restrictive covenant or an unregistered title, this can cause delays in the re-mortgaging process.

Some lenders also require properties to be registered with the Land Registry before they will approve a re-mortgage.

We can review your title deeds early on, so any issues can be resolved before they cause delays.

Forgetting to update co-ownership arrangements

If you own your home jointly with a spouse, partner, or family member, re-mortgaging could affect your legal ownership status.

For example, if one owner is buying out the other, a transfer of equity will be required.

Additionally, if a new owner is being added to the mortgage, this needs to be reflected in the title deeds.

Not checking early repayment charges on your existing mortgage

If you are still within a fixed-rate or discounted mortgage deal, your lender may charge an early repayment charge (ERC) to exit your current mortgage early.

These fees can be substantial (sometimes thousands of pounds) and could outweigh the savings of switching to a new deal.

Avoid this by reviewing your mortgage terms before committing to a re-mortgage and factoring in any ERCs when calculating the overall benefit.

Not budgeting for legal fees and lender charges

While re-mortgaging is generally cheaper than buying a property, it still comes with costs.

As well as legal fees for the conveyancing work, you may need to pay:

• A valuation fee (unless covered by your lender).
• Lender arrangement fees for the new mortgage.
• Land Registry fees if changes need to be made to your title.

Re-mortgaging with confidence

Re-mortgaging can provide financial flexibility, but overlooking the legal details can lead to costly mistakes.

A specialist conveyancing solicitor can help you avoid errors and make the conveyancing process as smooth and efficient as possible.

At Ansons Solicitors, our specialist residential property team is accredited to the Conveyancing Quality Scheme by the Law Society – a rare achievement highlighting the hard work, high standards, and quality of service provided by our residential property lawyers.

We’re here to advise you on the implications of having a charge registered against your property, to ensure you’re in the best position to decide the best step forward for you.

If you decide to proceed with remortgaging your home, we’ll liaise with your new and existing lenders, carry out the necessary searches, and register the new mortgage against your property.

Don’t make mistakes when remortgaging your home. Contact our Residential Property team today for expert advice and guidance.