Your offer letter
The offer letter means that the lender is happy to lend you the amount the mortgage adviser has requested on your behalf.
Once you receive your mortgage offer letter, read through it carefully, as anything that is incorrect must be corrected and a revised offer issued to all parties.
Accepting the mortgage offer
Your solicitor or conveyancer will let you know if you need to do anything before signing and returning the mortgage offer to the lender.
Completing the purchase
After you’ve accepted the mortgage offer, your solicitors can start the final phase of buying your property. That means they’ll agree a date to exchange contracts with the seller. The contracts set out the agreement as to what’s included in the purchase price, as well as any terms and conditions you and the seller are agreeing to. Your solicitor can answer any questions you have. In Scotland, the process is called an ‘exchange of missives’.
If you are buying in England, Wales or Northern Ireland, this is the point at which you are legally committed to buying the property. In Scotland you are committed once the respective solicitors reach ‘conclusion of missives’. Your solicitor will agree a completion date with you, which is usually the day you get the keys. To make sure that happens smoothly make sure you have:
- The deposit money ready
- Money to pay the solicitor or conveyancer
- Additional money for fees such as stamp duty
- Building and contents insurance to go live on completion
- Protection in place for completion
Once your solicitor/conveyancer confirms completion you can go and collect your keys.
Remortgage
Make sure you read your mortgage offer letter carefully. Spotting mistakes early means you can get a revised offer issued to all parties involved.
Solicitors/conveyancers steps
- ID checks
- Reviewing your existing mortgage
- Check leasehold terms (if relevant)
- Property searches
- Review the property valuation
- Sign the mortgage offer
- Completion
Your solicitors/conveyancer will ask you for proof of ID. It’s important to note that whilst the lender will have previously requested this, that’s for their own checks. Your solicitor/conveyancer will also need to check your ID to comply with their own regulations and compliance under the anti-money laundering laws.
The solicitor/conveyancer will gather details of your current mortgage, including a redemption statement. This will confirm the amount outstanding, as well as any early repayment charges or early exit fees and when these will expire.
You will be asked by the solicitor/conveyancer to complete a questionnaire document. One of the questions will be to confirm when any early repayments end and the date you want to complete.
You will also need to confirm if there are any secured second charges or bridging finance and if these are to be repaid, along with details of the lender(s) so that the solicitor can request redemption statement(s).
Your solicitors/conveyancers will check the leasehold terms (if applicable). This is to ensure it is compliant with the new lender. Your solicitors/conveyancer will contact the landlord/management company to obtain some necessary information and notify them about your existing and new mortgage.
Your solicitor/conveyancer will carry out property searches as it is part of the checks they need to do for the new lender.
Your solicitor/conveyancer will review the valuation as part of the checks.
Once you are happy with the terms of the remortgage offer, your solicitor/conveyancer will need you to sign the mortgage deed along with any other documents required by your new lender. Try to return these to your conveyancer as quickly as possible (special delivery as this can be tracked).
Your solicitor/conveyancer will request funds from your new lender and once received will pay off your existing lender. If any funds are due back to you, your solicitor/conveyancer will send this balance to you.
Registering the changes with Land Registry
Once confirmation is received that your old mortgage has been repaid, your solicitor/conveyancer will update the Land Registry that a remortgage has taken place, as well as providing proof of this to the new lender.
It is important to note here that on a standard remortgage, the solicitor/conveyancer act on behalf of yourself and your new lender. They will make sure your legal title and Land Registry is informed. They will also ensure that everything complies with any specific terms or requirements imposed by your new lender.
Your home may be repossessed if you do not keep up repayments on your mortgage.