Remortgage Solicitor Belfast top advice – The main reasons why a remortgage can be delayed. (Part 2)

Mark Kelly LLB guides us through in a 2 part series.

A remortgage can be a very daunting experience, especially if you are coming to do one for the very first time. You will have a lot of questions and uncertainties about the process, timescales and what is actually required. At RG Sinclair Solicitors & Co we take all the stress and make the process clear, concise and hassle free for you. We pride ourselves in providing an excellent service, keeping the borrower informed at each step. Here are some easy guides to follow to get the process started:

What is a remortgage?

A remortgage is when you end your current mortgage with your current provider and take out a new mortgage with a different lender. When the process is complete, your old lender is paid off in full by the new lender who then takes over as your mortgage provider.

Top reasons why a re-mortgage can be delayed (Part 2)

Following on from our successful and well received publication detailing some of the most common reasons why a re-mortgage can be delayed, we have been asked to put together more of the most common reasons as to why it might take a little bit longer to complete a re-mortgage than what would be usual in the majority of cases.

Early Repayment Charge (ERC)

In some instances, there are cases which have an ERC in place, which means that if the borrower leaves their current deal before a certain date, they will be penalised financially. This can be avoided by waiting to the day after the ERC expires. Depending on how long it is from the time the case is instructed to the expiry of the ERC, there could be a delay of 1-3 months as completion cannot take place until after the expiry date. 

Shortfall

A shortfall can occur when the amount being borrowed from the new lender is less than what is owed to the current lender. If this is unexpected, it can cause some delay as the borrower evaluates the situation and decides how to proceed. There are a number of reasons why this miscalculation can occur, the most common being:

1

Not taking into account lender fees for exiting your current mortgage

It is advisable to either read the small print of your current mortgage offer or contact your current lender and ask them if there are any exit fees to be added on to the final redemption figure. Some lenders charge up to £250 to close your current mortgage account as well as fees for releasing title deeds and sending redemption statements.
2

Valuation

There are rare occasions when the new lender will only lend a certain amount based on the valuation and loan to equity ratio which means that there is going to be shortfall in certain circumstances. It is best to have discussed this with your broker / financial advisor and be fully aware of how much will be needed upon completion and make the solicitor handling the case aware of this.

Valuation Issues

Sometimes the biggest hold up can be the valuation of the property for the new lender. Depending on this report, it can delay the release of a mortgage offer, or it can mean that the borrower has to go back to the lender for an amended offer to reflect the valuation. Depending on how long this take, a delay can occur whilst this is being resolved.

New Build

If your property is a new build or under 7 years old, there are certain pieces of documentation which will be required in order for us to proceed. Those include:

1

Completion certificate(s)
2

Copy of architect’s insurance
3

Property/DOE certificate
4

NHBC certificate (if a building contractor was used)
5

Any certificates that relate to installation of gas/ building extensions
6

Solar panel installation certificate/building control (if applicable)

There may be other documents needed as a full title check is completed, but those mentioned above are the most common. If these can be provided ahead of time, then it should shorten any delay.

Ongoing previous legal work by third party solicitor

Usually this occurs if it is a recent purchase and the solicitor who dealt with this has not completed the lodging of the paperwork at Land Registry or if there is an issue with an element of the paperwork which needs clarified by that solicitor. In most cases, unless this is resolved, we cannot proceed with the re-mortgage until all the legal formalities by the lodging solicitor has been completed.

We would advise that if you have purchased within the last 1-2 years and you are looking to remortgage, check with your original solicitor that everything has been completed and that there are no outstanding issues. This will mean that we can proceed as normal without any delay.

What do I do when I have a mortgage offer?

Once you have the offer that best suits you, contact Mark at RG Sinclair through phone (02890231770) or email (m.kelly@rgsinclair.co.uk) and he will give you a quote for the firm to do the legal work. When you are happy to proceed, let your new lender know and return the initial paperwork to the person handling your case at RG Sinclair and they will do the rest. At RG Sinclair, we pride ourselves in providing an excellent service, making every step clear and hassle free for the borrower.

remortgage delayed

Mark Kelly LL.B

Legal Manager

Mark Kelly studied at the University of Ulster at Jordanstown and graduated with an LL.B in Law and Government in 2003.

After graduating, Mark worked for 10 years in the charity sector as a Local Area Director, later being promoted to Manager and Team Leader in 2016. In addition to this, Mark played a key role in in the finance department, while maintaining and developing the Charity’s website and IT infrastructure. Mark joined the re-mortgaging Department at Robert G Sinclair Solicitors in January 2017. Outside of work, Mark is a keen rugby player and enjoys spending time with his family.

Mark also sits on the Board of Governors for a primary school and is a trustee for Abaana, a charity which works with disadvantaged children in Uganda.

About Belfast Solicitors and Law Firm Robert G Sinclair Solicitors

Our purpose is to provide you with legal advice that is clear, simple and transparent to you about your legal needs. You can feel reassured from your very first consultation, when all expectations and fees are made crystal clear before we proceed.

You will be kept informed throughout the process and you will benefit from our vastly experienced team who are experts in many areas from Personal Injury claims to Property to Business Legal Services and Banking. Please contact us on info@rgsinclair.co.uk or call 028 9023 1770.

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