Changing lender - the actual process
Lending institutions require you to be independently advised which is why you need your own solicitor.
1. Negotiate new mortgage. New lender issues letter of offer to you and a copy your solicitor.
2. Instruct your own solicitor to take up the Title Deeds on your authority from current lender. Solicitor takes up deeds and checks with you if anything has altered e.g. marital situation, any planning issues, any notices served....
3. You comply with all new lenders requirements - life cover, house insurance with their interest noted, direct debit. Your solicitor undertakes on your authority to redeem current mortgage with new mortgage proceeds and to certify the title ( i.e. that it is a good title - if they need to repossess, they want good title)
4. Once all above is in place, new lender issues loan cheque to your solicitor ( obviously - as they need to redeem the old mortgage), solicitor does searches ( no judgments, form of mortgages or bankruptcy), solicitor redeems old mortgage and releases balance (if any) to you. You pay solicitor.
5. Solicitor then waits anything up to a year ( particularly with FA) for old lender to release old mortgage duly receipted so that details can be registered. Solicitor simultanaeously registers new mortgage.
6. Solicitor sends title deeds and Certificate of Title to new lender.
Re-mortgage completed.
mf