Freqently Asked Questions about the Remortgage Process

Do you pay broker fees?

No, if a broker fee is sent to us from your prospective lender we will forward it straight to the borrower

What is a surplus?

This is the money that will be left over once we have paid off your existing mortgage. For example if you borrow £10,000.00 and to redeem your existing mortgage is £6,000.00 then the difference due back to you will be £4,000.00, this is your surplus.

How soon after completion will I receive the money?

This depends on how you would like to receive your money:

If you would like a Telegraphic Transfer the funds will be transferred from our account the day of completion; however it may take up to one business day before it will show in your account.

If you would like a Cheque this will be sent out to you on the day of completion and it will be for your bank to determine how quickly these funds will clear in your account.

What is a shortfall?

This means that the money you are borrowing is not sufficient to redeem your existing mortgage. For example if you are borrowing £10,000.00 and to redeem your existing mortgage is £12,000.00 then the difference due from you will be £2,000.00, this is your shortfall.

How do I cover the shortfall?

Cheque: You can send a cheque in to us but this must be received six working days before your anticipated completion date

BACS: This is a method of transferring money from your bank account to ours, however the funds must be transferred four working days before your anticipated completion date

Telegraphic Transfer: This is a similar method to a BACS transfer, however the funds can be transferred one working day before completion

Credit/Debit Card: You can call us at the office and pay over the phone by either Debit or Credit card. These funds will clear immediately so the payment can be made on the day of completion. There is an administration fee with either card,

Debit Card = £5.00 (plus VAT)

Credit Card = 2% of the shortfall amount (plus VAT)

Revise the offer: You may be able to increase the offer amount with your prospective lender

Who do I pay the shortfall to?

Any shortfall monies need to be forwarded to us, therefore if you are sending a cheque please make it payable to "John Collins and Partners LLP". If you wish to use a different payment method we provide you with bank details at the necessary time

How do I obtain a revised offer?

You or your Financial Advisor/Broker will need to contact your prospective lender to determine whether you are able to increase your offer amount.

Can you revise the offer for me?

No, we are unable to do this for you as we are not financially regulated.

How long will it be before I have to make my first payment?

For this information you will need to contact your prospective lender directly, as it is them who deal with your monthly payments.

Do my sons or daughters need to sign the occupier consent form?

No, although you may receive a form addressed to your son or daughter, they will not be required to complete this form. We are not provided with the occupiers relationship to the borrowers when we are instructed, which can lead to the forms being sent out unnecessarily.

How long will the process take?

This can vary depending on how quickly we receive all the necessary documents and how complex the remortgage is. With full co-operation from all third parties involved we are able to complete a standard remortgage within 25 working days.

What happens once you receive my initial documents?

There are four main documents we require to be able to set your completion date, two of which come from yourselves. Once we receive these together with your Offer from your prospective lender and a redemption statement from your existing lender, we are able to set a date to complete your remortgage.

Once a date has been set we write to you confirming this and attach the anticipated figures.

What is the Landlord Notice fee?

This is a fee on leasehold properties which is charged by your freeholder. The fee should be stipulated in the lease between yourself and your freeholder. It is the fee they charge for the Notice of Mortgage to be served on them.

There is no standard fee and some freeholders may not charge a fee at all

Why is my redemption figure different to yours?

Often when borrowers call their existing lender for their outstanding balance they will not be provided with the full redemption figure. The lender may fail to provide the borrower with all the fees necessary to close the account (i.e. deeds release fee).

A discrepancy may also be due to us having received a redemption statement which does not include your most recent payment.

How long do I have to return my documents?

We set a return time of 28 days. However if you are unable to return your documents within this time period you must let us know as soon as possible so we can extend this time period for you. 

How long can I delay the completion for?

You can delay completion as long as you have notified us and your Offer remains valid, therefore maximum delay period is usually around six months.

 Can I fax/email documents back to you?

If your completion is urgent we will accept faxed/emailed copies of documents and use these to set an anticipated completion date, however we need the original documents back before we complete your remortgage. 

Why have you sent me a name/address discrepancy letter?

As part of the remortgage process we obtain a copy of your Property Register. Information on this document must match the information provided to us by your prospective lender. If there are any discrepancies found between the Property Register and the Offer we send out a letter asking you to confirm which is correct.

If the Property Register is found to be incorrect we will need to amend this on registration.

Why do I need to provide my ID?

When amending the Property Register due to a name discrepancy, it is a requirement of the Land Registry that we provide them with your original identification (or a certified copy).

Why do I need to pay for an Indemnity Policy?

An indemnity policy is a form of insurance for a prospective lender against a defective title on the property used as security. A defective title usually occurs either where the Land Registry is not provided with sufficient information regarding ownership on registration, or where land is owned as a result of possession.

A prospective lender will not proceed with a remortgage if there is a defective title unless an indemnity policy is purchased.

For more information please contact the remortgage team on 01792 773773 or email law@johncollins.co.uk

Remortgage Glossary