Legal mistakes to avoid when re-mortgaging your home

Re-mortgaging can be a smart financial move.

This could be for a number of reasons, you might be 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.

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.

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.
• If a new owner is being added to the mortgage, this also needs to be reflected in the title deeds.

Not budgeting for legal fees and lender charges

While re-mortgaging is generally cheaper than buying a property, it still comes with costs. You may need to pay:

• Legal fees for the conveyancing work
• 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.

Considering a re-mortgage? Speak to our team today for expert legal advice.