Thinking of switching your mortgage?

We are all aware that interest rate increases are set to continue and many home owners are shopping around to see if they can save some of their hard earned money by switching their mortgage to a new provider.

Unfortunately switching your mortgage is not quite as easy as switching your electricity supplier and  you will need to use (and pay for) a solicitor.

There can be significant savings from switching your mortgage but be sure to do the calculations to ensure the  savings justify the cost of switching.

Here are a few of the steps involved:

  1. Once you have decided to switch your mortgage you will need to contact a solicitor to deal with the legal aspects of switching your mortgage.
  2. The Solicitor will then need to obtain the title deeds for your property from your existing bank. This process can take anywhere from one to two months.
  3. Once the Solicitor has the deeds they will go through them to make sure that everything that is required is there and if not obtain any additional documentation that might be required.
  4. In the meantime your loan pack from your new bank should have issued and been sent to your Solicitor.
  5. They will arrange a meeting with you to go through both the new loan and have you sign the additional documentation required.
  6. As part of the process they will have obtained “redemption figures” from your existing bank which sets out how much is needed to redeem your existing loan.
  7. Once all the documents required have been signed your Solicitor will request the loan funds from your new bank. Again this can take up to two weeks.
  8. Once the loan monies are received from your new bank they will pay off your existing mortgage and register the new mortgage before sending the title deeds to your new bank.

Should you require any further information on the process or costs involved please do not hesitate to contact us.