There are probably almost as many mortgage deals as reasons to remortgage.

It is not unusual for borrowers to remortgage on a regular basis to take advantage of low interest rates or introductory offers.  This can also allow a borrower to extend their fixed interest rate period.  Having a fixed rate mortgage allows a borrower to avoid any unpleasant surprises when rates rise.  It makes sense for a borrower to look at their options every few years, particularly when any fixed rate period on an existing loan comes to an end.

When acting for a remortgager once the new loan has been selected, we will receive loan papers from the new Bank or Building Society.  These detail the new mortgage confirming the amounts being borrowed, interest rates and period of loan.  We will talk our clients, the borrower, through the various conditions and ensure that they fully understand and are happy with the terms.  We will then prepare a Standard Security to be signed by the borrower.  This is the deed which gives the lender a charge over the property meaning they have a right to repossess the property should the monthly interest on the loan not be repaid.  Once the new loan is in place we deal with the registration of the Standard Security at the Registers of Scotland.

We will contact the borrower’s existing lender for a redemption statement which confirms the amount still outstanding on the old loan and also whether any early repayment or other charges are due.  We check the terms of the redemption statement and will request payment of the new loan.  Upon its receipt we shall use these funds to pay off the old loan and any balance will then be forwarded to the borrower.

At this point the original loan with its various conditions and interest rates comes to an end and the conditions of the new loan comes into play.