Remortgages have traditionally been used to free up equity or to secure a better mortgage interest rate.
The current cost-of-living crisis has prompted homeowners to look for product transfers rather than taking out remortgages, causing a drop this autumn.
A product transfer means that lenders do not have to undergo the traditional affordability test, a process that many are keen to avoid, with living costs at an all-time high.
It is thought that the trend for product transfers will remain high. However, those who do opt to remortgage will favour 2-year fixed rate products, with a hope that interest rates have lowered on expiry of the fixed term.
As a result, this has caused lenders to cut their rates in order to attract new borrowers. This allows them to better compete in a smaller overall pool of mortgage borrowers.
This newly competitive market has resulted in a change for those whose mortgage deal is close to expiry.
Conveyancers or solicitors should be the first port of call when dealing with ownership of property changes. A qualified, highly skilled professional can assist with anything from first-time purchases to tenure, to complex issues such as transfer of equity cases. They may also be able to assist where there is a dispute with either a third party or the mortgage lender.
A solicitor or conveyancer should always be instructed prior to the remortgage process. Although the process is similar to when first purchasing a property, it is less time-consuming and there are fewer checks on the title deed required. For further information on conveyancing specialists who can guide you through the remortgage process, visit https://www.samconveyancing.co.uk/news/conveyancing/transfer-of-equity-process-3894.
Some solicitors may offer free legal remortgage work, although this does not include additional costs or transfer of equity.