Re-mortgaging - didn't realise I'd need a solicitor!

johnnyboyz

I'm in the process of remortgaging and have been told I'll need to have a solicitor. I wish the BS had told me this at the start! They are going to give me a quote for using their solicitors. What is a fair amount and what options are their to get this done cheaply elsewhere?

StevieJ

I moved my current account to the A&L, they have some good extras. I then availed myself of one of their fee saver mortgages and I did not have to pay a penny.

x_Wilco_x

I think the going rate for a re-mortgage is about £350 (at least that is what I was quoted by BS for using their re-mortgage conveyencing service). This will differ depending on work needed, freehold/leasehold etc...

cm233lh

Some lenders say they pay the legal fees. Does this mean that you don't need to pay anything; or do they only pay their side, and you still have to hire a solicitor to take care of your interests?

robwend

bump this thread, didnt know you needed a sol either

MarkyMarkD

cm233lh wrote: »

Some lenders say they pay the legal fees. Does this mean that you don't need to pay anything; or do they only pay their side, and you still have to hire a solicitor to take care of your interests?

They mean they'll pay your legal fees. You never have to pay (separately) for the lender's legal costs.

homer_j_3

solicitors are required in all remortgages (the process of taking current mortgage with one lender to another lender on the same property) as the legal charge needs to be removed and replaced with the correct lenders details on it.

The cost will be dependent on house value normally but most lender will offer a free option however you sometimes need to watch out because you can sometimes get better deals by getting a better rate and paying for yourself.

The mentality of it all though means that this option very rarely happens because you often look at the short term of what have I got to pay out of my pocket now - £350 v nothing - nothing wins everytime. However a £20 saving per month on the non-free legal deal would clearly show that a 2year deal would save you £480 over that period and you are £130 better off!

MarkyMarkD

The way customers behave with mortgage deals is very interesting, homer_j.

Some people will pay ridiculous up-front fees on very small mortgages, because they are simply adding the fees to the loan and want to keep their monthly payments as low as possible.

And conversely, people with relatively large mortgages will go for "fee free" deals in the mistaken belief that they are better value, simply because there are no up front costs.

Your wording concerns me somewhat. Looking at the monthly payments on a mortgage over the discounted/fixed term is NOT a valid way of assessing the two-year (or whatever period) cost in most circumstances. If fees are added to the mortgage, they cost next to nothing on your monthly payments over 2 years, but they are still costing you the whole £2,499 or whatever in reality.

I'm sure that this is teaching you to suck eggs, but for others reading the thread:

True cost of a 2 year deal = up-front fees (product, valuation, legals) + 2 years' interest + MEAF

And for a repayment mortgage, 2 years' interest = 2 years' payments - reduction in capital balance

homer_j_3

My response didn't have accurate calculations in mind, it was just the overall point that I was trying to make.

Sometimes its hard to get a balance on here, I could be technical down to the point of being anal and sometimes you can almost be too general so thanks for picking up on how I may have misled some readers of this great forum...

jillie1974

we didnt use a solicitor
didnt know we had to..

MarkyMarkD

If you didn't use a solicitor, I doubt you actually remortgaged.

Did you possibly switch products with the same lender, jillie, which is NOT a remortgage?