Do you pay solicitors fees when remortgaging?
If you are looking at remortgaging your property, you may be wondering about what charges you may have to pay as a result. In addition to potential early repayment charges (ERCs), there may be product fees or valuation fees you need to budget for. But, as with getting a mortgage initially, do you need to instruct a solicitor and therefore incur their often-expensive fees? Here, we find out.
Remortgages and solicitors
In short, you sometimes need a solicitor for remortgaging and you sometimes don’t. The reason there is no clear cut answer is because it is dependent on what type of remortgage you’re involved with.
So if you are only looking to borrow more from your provider, you will not need a solicitor and therefore won’t need to pay them for their time. Additionally, if you are simply changing to a different mortgage product to make the most of lower rates, you won’t need a solicitor either. Both of these instances only require you to work together with your mortgage provider to agree a new rate or borrowing amount.
If you are remortgaging for other purposes, then you may well need a solicitor to help protect your legal interests. For example, you could be releasing equity to purchase another property. Or there could be a change in your situation like a divorce, which means your mortgage needs to be amended.
During a remortgage, a solicitor will carry out many of the tasks they would have done with the initial mortgage process. So, they will do ID checks, conduct the relevant searches, evaluate the new valuation from your lender, and assess your current mortgage among many other essential activities. Looking at your current mortgage is particularly important to the remortgage process as they will double-check what exit fees or early repayment charges you may have to pay.
What if your provider covers your legal fees?
You may find that your mortgage provider offers to cover the costs of your solicitor during the remortgage process. This practice is not uncommon, but it can lead to a couple of pitfalls. Firstly, you may need to ensure that your appointed solicitor fees are actually free and not simply added to your mortgage product fee. Secondly, you may not want to use the solicitor they provide. In these instances, you may be able to appoint your own, but you’ll need to foot the bill.
Conveyancer fees for remortgages
While conveyancing on remortgages may not always be needed, when it is, the subsequent fees can materially add to overall costs. However, do remember that conveyancers look after your legal needs so it is often money well spent.