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HOW TO SWITCH YOUR MORTGAGE
Many property owners see the value in saving money on their current mortgages by switching banks or re-mortgaging their property. Remortgaging means taking out a new mortgage with a new bank and using this money to repay your existing mortgage.
Competition is fierce between the banks with many banks offering cash back and others offering to pay a contribution towards the cost of switching. In many instances, the costs of switching (including your legal costs) are covered by the new bank. The common reasons to switch your mortgage include reduced interest rates (thereby saving your money over the longer term), renovations or extensions and equity release.
Compare mortgage rates using an online mortgage calculator such as the one on bonkers.ie or mortgages.ie to find out which bank is offering the best rates and whether it makes financial sense to switch. Alternatively you can contact a mortgage broker who can talk to your new lender on your behalf and help you with your entire mortgage switch.
THE LEGAL BIT
Once you have made your application to your new lender and have been approved, then its onto the legal bit. This is where the mortgage solicitor comes in. The mortgage solicitors role is to review the new loan documentation to ensure that it corresponds to what you have agreed with the bank (loan amount, interest rates etc), to certify title to the new bank, to redeem your old mortgage and to register your new mortgage on the property with the Property Registration Authority. This typically involves the following steps:
Step 1 - Title Deeds
The title deeds are typically held by your previous bank and so we will need your authority to take up those title deeds. To do this, you sign a letter of authority authorising us to take up the title deeds to the property during the remortgaging process. It can take up to 2 weeks or more to obtain the title deeds from the bank so it is important to deal with this as soon as possible to avoid any delays.
Step 2 - Title Review
Once the title deeds are received from the bank, we will carry out a review of the title to your property to ensure there is good title. Additional documentation may be required from you. For example, an up to date Local Property Tax receipt or if you have carried out an extension or any works to the property then you may need to provide an architect's certification certifying that the extension/works have been built in compliance with planning laws. Your solicitor will run through these items with you once a full review has been carried out.
Step 3 - Sign Loan Documentation
Once the property's title is in order, we will meet with you to run through the loan pack issued from your new bank and to sign the documentation required to allow funds to be released to complete. At this point, we will also obtain up to date redemption figures from your old bank. This is a letter from your old bank which sets out the funds required to release your old mortgage from the title.
Step 4 - Closing Searches
We will carry out searches prior to the completion date to ensure nothing appears that affects the property or the banks ability to release funds for the remortgage. These typically cost in the region of €150-€250 depending on where the property is located.
Step 5 - Drawdown
If all is in order, your new bank will furnish the remortgage funds to our client account and which we will use to discharge your old mortgage.
Step 6: Registering your new mortgage
Once completed, we will arrange for your old mortgage to be removed from the property's title and for your new mortgage to be registered with the Property Registration Authority.
Step 7: Return deeds
Once registration is complete, we will lodge the deeds to the property with your new bank who will hold them as security for the term of your new mortgage.
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WHY CHOOSE ROE SOLICITORS?
We have extensive experience in dealing with all matters relating to moving your mortgage. We are expert mortgage solicitors. We keep you informed at each stage of the process to ensure the transaction runs as smoothly and efficiently as possible. If you’re looking to switch your mortgage and are looking to speak with an experienced solicitor, then please get in touch today.
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