When it comes to the housing market, change is unavoidable. Just consider when you originally organised your mortgage, the interest rates were most applicable to the housing market at the time of purchase. And if we also consider the size and terms of your mortgage, it would’ve been best suited to your income and personal expenses at the time of purchase.
After all, you had just purchased a new home, you had to pay some set-up costs, and you were just getting comfortable with being on the property ladder for the first time. But when circumstances change, it can be wise to consider refinancing and whether you need to consult with a conveyancer if it’s something you undertake.
Mortgage refinancing, or in other words refinancing your home loan, is something that is typically done for a variety of reasons, however, what it boils down to is the homeowner’s desire to change their mortgage strategy by replacing their existing loan with a new loan, with the aim of repaying the former loan with the new one.
Some of the reasons for wanting to pivot or change mortgage strategies and seeking refinancing are as follows:
- Your level of income has changed
- Your expenses have changed, such as your children moving out
- You might want to access cash for other pressing expenses
- A windfall has come in, such as inheritance or a bonus
- You want to consolidate your debts
- You want to take advantage of changed interest rates and reduce the monthly repayment amount
- You may also want to reduce risk by changing the type of mortgage loan that you have
In short, there are a myriad of reasons why you may want to refinance but if that is a decision you make, you need to notify your mortgage or property lawyer as a mortgage lawyer is required to ensure that your mortgage is changed as per the conditions in the property and conveyancing legislation that you affirmed in your purchase of the property.
If you’re at a point where your income has increased, you’ve been bequeathed some inheritance cash, your kids have left the nest, or your lender’s rates have changed and you’re now wanting to refinance your mortgage to get yourself a better deal; contact a property lawyer or conveyancing solicitor. They will sit down with you and work through the necessary legal steps to ensure that your refinancing is done properly.
As mentioned, a mortgage lawyer is required for this financial transaction and most people will simply appoint their selected mortgage lawyer to work on their behalf in this situation. However, this process can also be conferred to a mortgage conveyancer, and a conveyancing lawyer can assist you in arranging your mortgage, and often with lower fees. The largest expense will typically be the application fee which is potentially payable to the lender. So, once you’ve chosen your lender and mutually agreed to the terms of the refinance, all that the refinance conveyancing process needs is for the lender to provide your mortgage conveyancer with certain loan security documents and instructions for preparing the loan. Your mortgage conveyancer will then complete the relevant documents, liaise with the lender, and register the discharge of the new mortgage. All you need to do is then sign!