Remortgaging

Yes - a remortgage is a formal legal transaction. A solicitor acts as a secure bridge for the capital, receiving the funds from the new lender, paying off the existing mortgage in full, and ensuring any remaining balance is transferred to you safely.

A solicitor must legally remove your current lender’s hold over the property and formally register the new lender’s interest in the property, as well as undertake a title investigation, verifying to the new lender that the title to your home is free from any legal defects. Even if you are staying with your current lender but changing the names on the title (known as a transfer of title), a solicitor is required to ensure the deeds accurately reflect the new ownership structure.

A standard remortgage in Scotland typically takes between 4 and 8 weeks from the moment you receive your formal mortgage offer. However, the exact timeline can be influenced by several factors.

Your solicitor cannot begin the legal work until they receive a written mortgage offer directly from the new lender, and they must have received a final figure from your existing lender to pay off your current mortgage. A title check must be performed to ensure everything is in order for the new lender (if there are historical issues with the property’s title, these may take time to resolve).

The total cost to remortgage will include any legal fees for the work carried out by your solicitor, including checking the title, dealing with lenders, and managing the transfer of funds, as well as registration dues, also known as outlays, which are mandatory fees paid to the Land Register. Your new lender may also request search reports which confirm there are no outstanding legal issues or local authority notices that could affect their security. At Austin Lafferty, we provide a full breakdown of these costs in writing before you commit.

Other costs may include an arrangement fee, product fee, and/or a deeds release fee, all charged by the lender. They may also charge an early repayment charge if you leave your existing mortgage deal before it ends. In this instance, we can aim to time the completion to coincide with the day your current deal ends, avoiding early repayment charges.

Yes. Homeowners choose to borrow more than their outstanding mortgage balance when switching lenders for a variety of reasons, such as funding home improvements or consolidating debts. Whether you are able to borrow more when remortgaging will depend on the current value of your property and your affordability according to the new lender’s criteria.

When remortgaging, you can release equity from your home by taking out a loan that is larger than your existing one. For example, if your current mortgage is £150,000 and you remortgage for £200,000, you’d receive an additional £50,000 as a lump sum for home improvements or to support a child through university.

There are a few other ways to release equity from your property, such as a ‘further advance’ or a ‘second charge mortgage’. While not the same as a full remortgage, these alternatives are still significant legal commitments. Speak with a solicitor to discuss which path is most suited to your circumstances.