Mortgage solicitors are needed during the majority of UK house purchases. Buying a house is the most expensive financial transaction many of us will ever make. Mortgage lender reports indicate that while more than one third of buyers are able to complete their UK property purchase without needing a mortgage, up to two thirds of buyers will still need a substantial loan to enable them to buy a property. There are legal implications to taking on or repaying a mortgage; and to make sure these are completed properly, you need a mortgage solicitor. Indeed, many lenders insist on it. But can’t this be done by your usual conveyancing solicitors?
The Legal Work For Mortgages Can Be Completed By Your Conveyancing Solicitors
The straightforward answer is yes, the legal work associated with your mortgage can usually be completed by your conveyancing solicitors. As ever, though, the full picture may not always be that simple. If you are selling a house which is mortgaged, your mortgage solicitors will need to arrange for it to be paid off via a ‘redemption settlement’. This is paid to your current mortgage lender when your solicitor receives payment for the property from the buyer, i.e. when the sale completes, and before any money is paid to you. As ever, there are costs associated with this.
The first will be the solicitor mortgage fees which you will need to pay to your solicitor. Then there may well be a ‘redemption administration fee’, also called deeds sealing fees, deeds fees, exit administration fees or exit fees. Your mortgage lender will charge you this fee to close your mortgage account and it will probably be between £50 and £300, depending on the lender and the size of the mortgage. It is usually added to your redemption settlement amount and is the reason your final payment might well be more than the amount of mortgage you think you have left to pay.
Your solicitor for mortgage redemption will also be able to tell you if there is an early repayment charge that you need to pay. This applies to some mortgages such as introductory offers, fixed rate, discounted or tracker mortgages and is usually a percentage fee also added to your redemption settlement amount. Your solicitors conveyancing fees pay for what can be a time-consuming and frustrating process.
Use Solicitors For Mortgage Legal Administration To Avoid Problems
If you are buying a UK property with a mortgage you will need solicitors for mortgage legal administration. There can be up to ten separate fees you need to pay to arrange a mortgage on a property you want to buy. A solicitor will transfer the mortgage money from your lender to the seller during completion and forward the title deeds to the mortgage lender for safe keeping when they are issued by the Land Registry. There is a solicitor’s fee for this service.
When you are looking for solicitors for mortgages, remember that this can be completed by the same solicitor as you use for your property conveyancing. You will, of course, need to inform the solicitors of your mortgage requirements when you ask for a quote. The mortgage legal fees will add to the solicitors conveyancing quote since processing mortgage payments requires more input from the solicitor.
You should also bear in mind that some mortgage providers will only deal with certain solicitors that they have approved and put on their ‘panel’. There may be an extra charge if you choose to use a solicitor who is not on their panel. You can either ask your chosen solicitor which panels they are on, or ask your mortgage lender if they will levy this extra charge if you use a ‘non-panel’ solicitor. As with all conveyancing, one way to get the most competitive quote for mortgage legal fees is to use an online conveyancing comparison site such as Conveyancing Index.
Conveyancing Index Provides Mortgage Solicitors Services As Part Of Our Overall Conveyancing Quotes
At Conveyancing Index, we provide details of mortgage solicitors services as part of our overall conveyancing quote system.
When you fill in our quote request form at https://www.conveyancingindex.co.uk, we ask about your mortgage requirements and then include any mortgage legal fees needed in the quotes you receive.
Our pre-approved conveyancing solicitors are among the best UK property solicitors and are well qualified to provide your mortgage legal services. We aim to be the UK’s leading conveyancing quote comparison service.
To find out more about our services, speak to our experts on 0203 874 2020.