Remortgaging can be a smart financial move, whether you’re seeking a better mortgage deal, switching lenders, or unlocking equity from your home. However, with numerous options, legal steps, and terms involved, it’s essential to understand how remortgaging works. In Scotland, the conveyancing process differs from that of the rest of the UK.
At Watermans, we simplify the remortgaging process so you can confidently move your mortgage. Our experienced conveyancing solicitors will guide you through every stage, from checking your current deal to finalising the paperwork.
Browse through our help & advice page for more information on the remortgage process in Scotland.
What is Remortgaging?
Remortgaging means replacing your current mortgage with a new one. This could be with the same lender, which would be a product transfer, or a completely different lender. Many homeowners assume they have to remain with their first mortgage. However, this is not the case. This section will explore when and why you might want to remortgage, especially when your current deal ends or your financial goals shift.
What is the Purpose of Remortgaging?
Remortgaging can help you:
- Save money with a lower interest rate
- Move on to a more flexible mortgage product
- Release equity to access more money
- Adapt your mortgage term or monthly repayments
- Consolidate debt or fund significant expenses
Whether your financial circumstances have changed or your existing deal is coming to an end, remortgaging allows you to reassess your options.
When Do You Need a Conveyancing Solicitor for a Remortgage?
If you’re staying with your existing lender and simply switching to a new product, you may not need a solicitor. However, if you move your mortgage to a different lender, legal work is required.
You’ll need a conveyancing solicitor to:
- Review the title deeds
- Liaise with your new mortgage lender
- Handle the redemption of your old mortgage
- Register the new standard security with the Land Register of Scotland
Our solicitors make the remortgaging process straightforward, helping you avoid delays and unnecessary costs.
Take the guesswork out of remortgaging with Watermans. Contact us for expert guidance on finding the right remortgage deal for you.
The Remortgage Process Explained
Below is a step-by-step guide to the remortgaging process in Scotland. Each stage involves legal, financial and administrative actions. Having a solicitor guide you through these steps ensures the process is completed smoothly, efficiently and with full legal compliance.
Instructing a Solicitor
Once you’re ready to remortgage, appoint a solicitor. At Watermans, we begin by confirming your details, reviewing your existing mortgage, and issuing a letter of engagement that outlines the fees and the remortgage process timeline.
Checking Your Current Deal
We examine your existing mortgage deal and flag any early repayment charges or exit fees that could affect your decision to remortgage early. Knowing when your existing deal ends helps avoid unnecessary penalties.
Applying for a New Mortgage
After comparing several mortgage rates, you’ll either approach your current mortgage provider or a new lender. The lender will carry out affordability checks, including:
- Reviewing your credit score and credit history
- Assessing your income and credit commitments
- Calculating your loan-to-value ratio
If successful, they’ll issue an Agreement in Principle before you complete your full mortgage application. An agreement in principle gives you a clear idea of the amount you can lend based on your personal circumstances.
Property Valuation & Title Checks
Your new mortgage lender will often require a property valuation to confirm the current value of your property. This can be done using a property valuer or using an online tool. We’ll review your title deeds and ensure there are no burdens, restrictions, or issues that could affect the remortgage.
Legal Work and Redemption
Once your new mortgage is approved, your solicitor will:
- Request a redemption statement from your current lender
- Prepare the new standard security for your new mortgage lender
- Arrange the transfer of funds and settlement of the old mortgage
Registering the New Mortgage
After the old mortgage is paid off, we register the new mortgage with the Land Register. This secures your new deal and finalises the legal process.
Remortgaging has never been easier than with Watermans. Contact our expert team today.
Key Considerations When Remortgaging
Before selecting a specific remortgage deal, it’s important to assess the factors that could affect your eligibility and financial outcome. From interest rates to your loan-to-value ratio, each element can influence the cost-effectiveness of a new mortgage deal. Being well-informed can avoid unexpected fees and secure the best deal for your circumstances.
Interest Rates & Mortgage Deals
Many homeowners remortgage to secure a better interest rate. Fixed-rate deals provide certainty in monthly repayments, while more flexible mortgage products may allow overpayments or payment holidays.
Be sure to compare various offers. What seems like a small difference in rate can save you thousands over the mortgage term.
Loan-to-Value & Equity
Your loan-to-value ratio affects the remortgage deals available to you. A lower ratio may open the door to better rates. If you’ve built up significant equity, you might be able to release more money from your property to fund improvements, investments, or other goals.
Credit History & Affordability
A strong credit score improves your chances of approval and better rates. During the remortgage application process, your new lender will perform various checks to assess your affordability. This includes reviewing your proof of income, financial commitments, and credit history.
How Long Does it Take to Remortgage a House?
The remortgage process in Scotland typically takes 4-8 weeks. Timing varies depending on:
- The complexity of your current deal
- Whether you’re switching to a different lender
- The need for property valuation or further checks
- How quickly documents are provided
Our team works proactively to complete all legal work promptly, helping you secure your new deal on time.
Get a free, no-obligation quote today or speak to one of our expert conveyancers to begin the process.
Frequently Asked Questions
What are the remortgage costs?
Typical costs include legal fees, valuation fees, early repayment charges and any exit fees from your current mortgage provider. Your new lender might also have arrangement or product fees, so it’s important to factor all expenses into your calculations.
How soon can you remortgage after buying a house?
Most lenders require you to wait at least six months after completing your purchase before you can remortgage. However, this varies depending on the lender and your financial profile.
What happens if I remortgage early?
You may face early repayment charges. However, if interest rates are significantly lower, remortgaging early could still save money overall.
How do I know if it’s the right time to remortgage?
Remortgaging is beneficial in several scenarios. When your current mortgage deal ends, it’s worth exploring remortgage options to avoid being moved to a higher standard variable rate:
- Interest rates are lower: If current interest rates are lower than what you’re paying, switching to a new deal could reduce your monthly mortgage repayments.
- End of fixed-term deal: When your fixed-rate mortgage ends, you typically move to your lender’s standard variable rate, which may be higher. Remortgaging at this point can lower monthly payments.
- Increased equity in your home: If your property’s value has risen or you’ve paid down a significant portion of your mortgage, you have more equity. A higher equity stake often qualifies you for better mortgage deals.
- Financial benefits outweigh costs: It’s essential to consider the associated costs, such as arrangement, legal, and early repayment fees. If the savings from a new deal exceed these costs, remortgaging could be advantageous.
Can I remortgage with bad credit?
Yes, but you may have fewer lenders to choose from and higher interest rates. We can help you explore specialist options.
How do I determine the amount of equity I have in my house?
You can estimate your equity by subtracting your outstanding mortgage balance from your current property value. For example, if your home is worth £250,000 and you owe £150,000, you have £100,000 in equity. For greater accuracy, consider using an online mortgage equity calculator or requesting a professional valuation.
Have more questions on how to remortgage? We’ve got the answers! Contact us for further information.
Watermans: Remortgage with Confidence
Watermans makes remortgaging work for you. We provide straightforward legal advice, a streamlined process and clear communication at every stage of the process.
With offices in Edinburgh, Glasgow and Dundee, we are a modern law firm and estate agency. Our team is dedicated to simplifying the legal processes and delivering efficient resolutions, so you can move forward in life with confidence.
Beyond remortgaging, we offer assistance with:
- Personal injury claims
- Will, trusts & succession planning
- Property conveyancing
- Estate agency services
- Commercial leasing
Our commitment to open communication and client-focused service makes us the trusted choice for legal assistance in Scotland.
Don’t wait until your current deal ends. Contact our team today for straightforward advice on how remortgaging works.