Solicitor for Remortgage

FaceHead

Going through my first remortgage as I drop down the LTV bands, and I was surprised that you need a solicitor. Remortgaging seems like a trivially easy case of passing money from one bank to another - but I suppose it is high risk for the banks. I expected it to be like switching energy company that they sort it out amongst themselves, rather than a solicitor being involved. 

Where should I find one? My broker has naturally suggested one, but I assume it will be massively overpriced. What is the going rate for the solicitor fee most trivially easy like-for-like change of lender? 

justcat01

I think it also involves the charge being updated on the land registry listing too.

I suspect £500 would suffice but it can vary just depending on where you are!

Thrugelmir

When there's thousands of pounds at stake hardly trivial. Fraud happens. 

BlondBoy

It's not trivially easy when you're changing lender - the new lender will require the solicitor to carry out similar checks as to when the property is bought. That's a large part of what you're paying for.

It's a stripped-down set of checks, for sure, but the new lender will want to be sure the property has sufficient value before they lend on it. So there will be at least some searches again, checks on the existing Land Registry documentation, ensuring the new lender is covered by appropriate buildings insurance. Plus registering the new mortgage when it completes.

As you see it, it's simply swapping one direct debit for another - I get that. As the new lender sees it, it's a new risk on their mortgage book and they need at least an amount of due diligence on it.

Somewhere between £300 and £500 is the general going rate. 

FaceHead

Thanks. Helpful insights, which actually push the calculations in favour of a longer mortgage, and of staying with the the same lender.

If you're swapping lenders every two years, the lots of £300-£500, start to mount up. I will re-consider whether a two-year is the right answer, and whether the slightly higher interest rate from my current lender might be worth putting up with.   

london21

Banks wont deal with you without one.
Some banks offer free legal 
Shop around but do bear in mind some cheap services are terrible. 

Thrugelmir

FaceHead said:

If you're swapping lenders every two years, the lots of £300-£500, start to mount up. I will re-consider whether a two-year is the right answer, and whether the slightly higher interest rate from my current lender might be worth putting up with.   

On top there'll be a mortgage exit fee , and possibly valuation and product fees. When reconsidering remortgaging all costs need to be factored into the equation. As the mortgage balance reduces the less viable it will become to remortgage. 

[Deleted User]

loads of fraud happens within the remortgage process. It has a similar level of risk to a bank that a new purchase does.   The same ID checks and fraud checks still need to be done. 

Lenders will usually offer cashback to cover the cost, or provide a free legal service to do it for no cost.  

The solicitors i use charge £299 for a freehold and £449 for a leasehold.