Latest news with #remortgaging
Daily Mail
3 days ago
- Business
- Daily Mail
An anti-fraud restriction on our home is making remortgaging a nightmare
My partner and I are in the process of remortgaging. When we bought the property five years ago the solicitor we used put an anti-fraud restriction on the title. We were inexperienced first-time buyers and didn't know a lot about it, but it seemed like a good idea at the time so we agreed. As it turns out, it has made remortgaging a nightmare. We were told we just needed to get an anti-fraud certificate signed, but we visited two local solicitors and neither would do it. We have gone back to the conveyancer who we used for the purchase but they said we'd need to pay £250 to certify that we are our home's rightful owners. This all seems like a racket to me. Are we going to have this problem every time we want to remortgage? Is there even any point having an anti-fraud restriction on the title? Some friends told us that we can set up alerts on the Land Registry for free which will alert you to any applications to change ownership or register a mortgage. Should we just pay to remove the anti-fraud restriction? Ed Magnus of This is Money replies: This sounds like an utter nightmare as well as an unexpected cost to bear. This anti-fraud restriction on your property's title stops the Land Registry from registering a sale or mortgage on your home, unless a conveyancer or solicitor certifies the application was made by you. While it may be tempting to remove the anti-fraud restriction, it may be worth the hassle and keeping it in place. This is because it's possible for a criminal to steal a homeowner's identity and use it to make an application to the Land Registry. A successful fraudster could forge a transfer of ownership, take out a mortgage on the property or even sell it without your knowledge. The fact you're struggling to get anyone to certify the document shows it must be quite an effective defence mechanism, and a good deterrent to fraudsters. However, the extra hoops it requires you to jump through can be annoying. The Land Registry advises that an anti-fraud restriction on the title is likely to slow down the process of selling or remortgaging. Your friends mentioned setting up a property alert on the Land Registry, which is a different thing. It means you will be notified of certain types of activity on the register in relation to your property, which you can rapidly respond to if necessary. This service currently has more than 1.25 million active alerts protecting properties across England and Wales, and giving homeowners greater peace of mind. For expert advice we spoke to Olivia Egdell-Page, partner and head of the property department at law firm Joseph A Jones & Co, and Andrew Boast, co-founder of SAM Conveyancing. Do they need the anti-fraud restriction? Olivia Egdell-Page replies: The anti-fraud restriction is a protection to you as the homeowner. It requires a certificate in to confirm you are the true owner of the property you are purporting to sell or mortgage. Usually, this means a solicitor who is acting for you in connection with a property will be required to obtain evidence of your identity, not only to comply with their own professional and regulatory obligations, but also to be able to submit an application to the Land Registry on your behalf. I wonder, on that basis, how and why the solicitor who is acting for you in connection with the mortgage is not able to produce this certificate. That would be my expectation and is usual practice, certainly in my firm. Andrew Boast adds: The restriction requires a qualified conveyancer to provide a certificate of compliance confirming the people who are remortgaging, or updating the Land Registry, are the same as those named on the title deeds. They do this by meeting the client, seeing their ID, such as a passport or driving licence, and checking the signature on the mortgage deeds matches the ID provided by the client. The Land Registry will only accept specific wording within the certificate, and will reject any with the slightest of errors. The problem is the anti-fraud restriction offers an almost foolproof anti-fraud protection, which is a pain for you whenever you need to remortgage or sell. The issue is that it needs to be completed every time you remortgage, or when you sell the property. Is £250 too much? Andrew Boast replies: The cost of this service varies from £150 to £300 and you pay more, the more names there are on the title deeds. You can complete the service remotely from your own home or work using a solicitor who offers video calls. Olivia Edgell-Page adds: The firm who acted for you when you purchased would be required to open a file, renew their ID checks and provide the certificate, so whilst £250 seems steep, the amount of time this will take inevitably incurs a fee. How long should the process take? Andrew Boast replies: The meeting with a solicitor is very short; a maximum of five to 10 minutes. The solicitor then drafts and posts the certificate of compliance to the client or their solicitor and then they are able to complete the remortgage or sale. If a meeting was booked in today, they'd have the certificate tomorrow or the next day, post dependent. We suggest special delivery for any cases where time is really critical. What is the Property Alert service? Olivia Egdell-Page replies: If you are concerned about the impact of the restriction moving forwards, an alternative is to activate the Property Alert service, a tool which is offered by the Land Registry. This is a monitoring tool which will enable you to receive email alerts when any activity occurs in respect of any property you have registered with the service. If you receive an alert about activity which seems suspicious you would then be able to take action. Andrew Boast replies: The Land Registry offers another solution to protect against fraud called the Property Alert. You'll be informed if someone applies to change the register of your property, however, it doesn't block them from doing so. This is where an anti-fraud restriction is better. It doesn't tell you the fraud is taking place, it stops the fraud from happening. You have to weigh up the benefit of knowing no one can impersonate you to sell or remortgage your home, against the logistics of obtaining the certificate and the cost. How else can they make themselves more secure? Olivia Egdell-Page replies: In order to protect your interest in the property, it is also recommended that you inform the Land Registry if you change your address at any time. Update this on the title to the property to ensure that this remains current and therefore means that the Land Registry can contact you if they have any concerns. How to find a new mortgage Borrowers who need a mortgage because their current fixed rate deal is ending, or they are buying a home, should explore their options as soon as possible. Buy-to-let landlords should also act as soon as they can. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you What if I need to remortgage? Borrowers should compare rates, speak to a mortgage broker and be prepared to act. Homeowners can lock in to a new deal six to nine months in advance, often with no obligation to take it. Most mortgage deals allow fees to be added to the loan and only be charged when it is taken out. This means borrowers can secure a rate without paying expensive arrangement fees. Keep in mind that by doing this and not clearing the fee on completion, interest will be paid on the fee amount over the entire term of the loan, so this may not be the best option for everyone. What if I am buying a home? Those with home purchases agreed should also aim to secure rates as soon as possible, so they know exactly what their monthly payments will be. Buyers should avoid overstretching and be aware that house prices may fall, as higher mortgage rates limit people's borrowing ability and buying power. What about buy-to-let landlords Buy-to-let landlords with interest-only mortgages will see a greater jump in monthly costs than homeowners on residential mortgages. This makes remortgaging in plenty of time essential and our partner L&C can help with buy-to-let mortgages too. How to compare mortgage costs The best way to compare mortgage costs and find the right deal for you is to speak to a broker. This is Money has a long-standing partnership with fee-free broker L&C, to provide you with fee-free expert mortgage advice. Interested in seeing today's best mortgage rates? Use This is Money and L&Cs best mortgage rates calculator to show deals matching your home value, mortgage size, term and fixed rate needs. If you're ready to find your next mortgage, why not use L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you. > Find your best mortgage deal with This is Money and L&C Be aware that rates can change quickly, however, and so if you need a mortgage or want to compare rates, speak to L&C as soon as possible, so they can help you find the right mortgage for you.
The Independent
3 days ago
- Business
- The Independent
Homeowners could save money on their mortgage under new rules
Homeowners are set to benefit from simplified mortgage rules, as the Financial Conduct Authority (FCA) confirms changes designed to make remortgaging or reducing loan terms easier. The City regulator's shake-up aims to introduce greater flexibility and help individuals better manage their financial lives. A key part of the reform involves the FCA removing existing guidance that it deems to have "served its purpose," a move intended to reduce the regulatory burden on financial firms. This adjustment means borrowers could find it simpler to shorten their mortgage term, potentially lowering the total cost of borrowing and mitigating the risk of repayments extending into retirement. Crucially, the requirement for a full affordability assessment will be lifted when a borrower seeks to reduce their mortgage term. However, the regulator has stressed that lenders are still expected to consider affordability diligently when implementing these new flexibilities. Firms retain a responsibility to act to avoid causing foreseeable harm to customers and must continuously monitor and review the outcomes experienced by their borrowers. People should also find it easier to switch to a new lender to remortgage, if they wish to, helping them to access cheaper products. Consumers could see their choice improved by allowing for simpler affordability assessments, where a proposed remortgage is on similar terms to an existing contract, but more affordable than a new deal indicated by a customer's existing lender. The FCA expects many borrowers to continue to benefit from regulated mortgage advice. Lenders are expected to consider what is appropriate to identify consumers who need advice or other support. Emad Aladhal, director of retail banking at the FCA, said: 'We are helping more people navigate their financial lives by supporting those who can afford to buy a home and supporting competition in the mortgage market. 'Consumer needs have changed over recent years, and our rules are changing too. 'Today's changes support growth by simplifying some of our rules, saving consumers time and money, while ensuring they still benefit from advice, where needed. 'We want lenders to use these changes to innovate and better serve aspiring homeowners and existing borrowers. 'These reforms are another significant step in our mortgage rule review, which we're delivering quickly. 'They are supported by the strong protections we've already put in place for consumers in the mortgage market.' The regulator said reform of the mortgage market is possible due to the continuation of high standards, such as the Consumer Duty, which requires lenders to put customers at the heart of what they do, as well as effective affordability checks and support for people in financial difficulty. The FCA's policy statement said regulatory reforms introduced after the 2008 financial crisis have improved standards across the mortgage market, with overall mortgage arrears and repossessions remaining low by long-term standards. The regulator said that, while changes are voluntary for firms, supporting sustainable home ownership and a competitive mortgage market is a collective responsibility. Changes to mortgage rules were included in the FCA's letter to Prime Minister Sir Keir Starmer earlier this year, linking with the Government 's aims to support economic growth. As part of its wider mortgage rule review, the regulator has opened a public discussion on the future of the mortgage market. It is inviting feedback until September 19 2025. Many lenders have recently made changes enabling some people to potentially borrow more, following clarification from the regulator. Paul Matthews, senior director of risk at leading financial services consultancy Broadstone, said: 'The FCA is taking significant steps to make it easier for consumers to make changes to their mortgages and get better support on their available options. 'The easing of regulation will allow lenders greater flexibility to innovate in the market.'
The Independent
03-07-2025
- Business
- The Independent
Home buyer mortgage demand expected by lenders to soften over summer months
Mortgage demand from home buyers is expected to soften over the summer, according to a Bank of England survey of lenders. Lenders reported that demand for mortgages for house purchase had increased in the past few months. But demand is expected to decrease over the three months to the end of August. Re-mortgaging demand also increased in the past few months and was expected to increase in the next few months. The Bank of England's Credit Conditions Survey is carried out each quarter, as part of its role in maintaining financial stability. The report reflects the overall views of the banks and building societies surveyed, and does not necessarily reflect the Bank of England's own views. Lenders were surveyed between May 27 and June 13 for the latest report. They were asked to report changes in the three months to the end of May, relative to the period between December and February, and expected changes in the three months to August. Any impact from more recent developments is not captured in the survey. Home buying costs became more expensive for some buyers from April, as stamp duty discounts became less generous. Stamp duty applies in England and Northern Ireland. Recent HM Revenue and Customs (HMRC) figures have shown that house sales picked up in May, following a plunge in April as the stamp duty holiday ended. HMRC's report said sales were likely brought forward into March to take advantage of the higher stamp duty thresholds. Simon Gammon, managing partner, Knight Frank Finance, said: 'Lenders expect demand for home purchase mortgages to soften through the summer – a seasonal trend, but also a reflection of where mortgage rates were when the survey was taken in late May and early June. 'At that point, the best fixed-rate pricing had plateaued just below 4%, and with swap rates edging higher due to hotter-than-expected inflation data, there appeared little scope for further easing. 'That picture has shifted. We're now seeing signs of a weakening labour market, and the Bank of England's tone has changed – there's more focus on downside risks to growth than inflation.' He said that had helped to drive mortgage rate cuts by major lenders over the past 10 days 'often by as much as 0.2 percentage points'. Mr Gammon added: 'While further reductions will be marginal, this could support mortgage activity over the summer and tee up a much busier autumn. 'The remortgaging market remains more robust.' The Bank of England report also said that mortgage availability is expected to increase over the three months to end of August. The availability of non-mortgage credit to households is also expected to increase. Lenders reported that the length of interest-free periods on credit cards for balance transfers and for purchases both increased in the past three months, and were expected to be unchanged in the next few months. Demand for corporate lending from small and medium-sized businesses had slightly increased in the past few months, while demand from big firms had been unchanged. Banks and building societies said demand for corporate lending in the next three months was expected to increase slightly for small and big business, but was expected to be unchanged for medium-sized businesses. Lenders reported that default rates on mortgage loans to households were unchanged in the past few months, and were expected to remain unchanged in the next few months. Defaults for credit cards and other household loans were also expected to be unchanged in the next few months. Lenders said default rates on loans to businesses were unchanged for small, medium and large businesses in the past few months and were expected to remain unchanged in the next few months. Overall credit availability to the corporate sector is expected to slightly increase in the next few months. Karim Haji, global and UK head of financial services at KPMG, said households are adjusting to 'ongoing cost pressures'. He said the stability in default rates 'reflects a degree of resilience'. Mr Haji added: 'As we move into the second half of the year, cautious optimism is warranted but lenders must remain alert to changes in affordability and borrower behaviour.'
Daily Mail
05-06-2025
- Business
- Daily Mail
Should I remortgage with my existing bank to avoid paperwork? DAVID HOLLINGWORTH replies
I'm remortgaging for the first time and am set to switch from my current mortgage with Halifax to NatWest in September. However, it's proving more taxing than I thought. I applied for the mortgage and had the offer, but am now faced with a huge amount of admin which I didn't expect. I've just had a baby and this is hard to manage. The lawyers that have been assigned my case have been sending email after email relating to various documents and costs. They say I need to pay £90 to deal with a Land Registry anti-fraud restriction on the title deeds. They want me to sign and witness a mortgage deed and to also send proof of ID and address that have been certified by a solicitor. On top of that they need me to sign and return their terms of business and fill in a 20 page questionnaire which requires me repeating most of the stuff I have already filled in for my application. They have also sent emails requesting a copy of the lease. Would it make sense to just stick with Halifax and move to a new product with them to avoid this mountain of paperwork? Someone told me lenders sometimes offer preferential rates to their existing customers. Is that true? David Hollingworth replies: A mortgage is likely to be the single biggest cost that you face each month, so it makes sense to keep it as low as possible. Failing to be proactive could easily result in you spending thousands of pounds more than necessary each year. Most deals will revert onto a higher variable rate at the end of any incentive period, such when a two or five-year fixed rate ends. This rate could easily be two or three per cent higher than the rates on offer elsewhere. Shopping around for a better deal is important and with thousands of different products you should include all options, whether from another lender or your existing lender. I'll explain what the process involves, whether you switch to another bank or building society or stay put. Remortgaging to another lender: What it involves The process of remortgaging to a new lender is in essence a simple one, but if you're not prepared for what's coming your way it can feel like a lot to take on board. As well as applying for the mortgage itself, there will also be a valuation of the property by the lender and some legal work to put the new mortgage into effect. In theory the valuation and legal work could add more cost, although many lenders will often provide incentives to counter those costs, providing a free basic valuation and help with the basic remortgage legal work. That could either be through the lender's nominated solicitor, or through a cashback on completion designed to cover all or most of the cost of using your own solicitor. While basic legal work is covered, there can be other costs depending on the circumstances. Leasehold title is certainly something that can add cost, as the freeholder may charge a fee for providing any necessary responses to the solicitor's enquiries. The solicitor will ask you for a copy of the lease in an effort to speed things up and potentially limit charges from the freeholder. The anti-fraud restriction you have been asked to pay for is something that you will have opted into. It means a solicitor has to sign off any attempted change to your property's information on the Land Registry. However, it does also mean that there's a need for enhanced verification of ID, leading to the need for solicitor certification and added administration costs. Finally, there will be a need for some form filling and there could be a feeling of déjà vu. There's plenty of moving parts in what is a relatively straightforward switch and that can lead to duplication of requests. What about a product transfer? It's always worth considering what your existing lender will offer when shopping around, and lenders have got a lot better in offering customers new deals to switch to. It's understandable that, with the arrival of your new baby, this admin may all feel too much when you have so much on your plate. Staying with the existing lender and switching on a like-for-like basis with no change to amount or term won't require a new affordability check or proof of income. There's also no legal work, as you're not taking a new mortgage with a different lender and are simply switching rate. That will reduce the paperwork but also the choice, so you need to consider the rate compared to the NatWest deal and others in the market. Some lenders can offer existing customers rates on par or even a little better than for new customers, but that doesn't mean they are the best on the market. You will need to specifically check what Halifax will offer, as it's a lender that offers rates set depending on the individual customer. Advice will help Using an adviser will offer benefits whichever path you go down and help cut through some of the jargon. They will also be able to consider other elements, such as reducing the term or overpaying to cut your total interest bill. That may not be high on your priority list now but could be relevant in coming years. Importantly, they will be able to access the Halifax product transfer rates and give a clear comparison to the NatWest deal and others on the market. This will give you clarity of the cost, which will help you decide whether the remortgage option will offer bigger savings and potentially make the form-filling worthwhile. GET YOUR MORTGAGE QUESTION ANSWERED David Hollingworth is This is Money's mortgage expert and a broker at L&C Mortgages - one of Britain's leading specialists. He is ready to answer your home loan questions, whether you are buying your first home, trying to remortgage amid the rates chaos or looking to plan further ahead. If you would like to ask him a question about mortgages, email: editor@ with the subject line: Mortgage help Please include as many details as possible in your question in order for him to respond in-depth. David will do his best to reply to your message in a forthcoming column, but he won't be able to answer everyone or correspond privately with readers. Nothing in his replies constitutes regulated financial advice. Published questions are sometimes edited for brevity or other reasons.
BreakingNews.ie
30-05-2025
- Business
- BreakingNews.ie
First-time buyers lead the way for mortgage approvals in April
First-time buyers continue to lead the way for mortgage approvals in April, with the overall value of approvals supported by ongoing increases in the average value of approvals and increases in re-mortgaging levels. The trends in approvals are broadly in line with Q1 and are unlikely to impact our mortgage forecasts, according to Davy. Advertisement The Banking & Payments Federation Ireland's (BPFI) April mortgage approvals of €1.5 billion are ahead by 14 per cent by value and 4 per cent by number versus April 2024, with the timing of Easter (April 2025 versus March 2024) likely having some impact on April 2025 activity levels. First-time buyers (€965 million) again lead growth with a 12 per cent increase in value (3 per cent by number), with a large increase in re-mortgaging (€151 million), albeit off a low base. Second and subsequent buyers remains more muted with a 1 per cent increase in value and 6 per cent decline in numbers of approvals. Average mortgage approvals continue to increase with an 8 per cent increase in first-time buyers to €330,123 and a 7 per cent increase in second and subsequent buyers to €374,823. On a year-to-date basis, the overall value of approvals has increased by 16 per cent, with a 13 per cent increase in first-time buyers and 9 per cent increase in second and subsequent buyers. Advertisement Second and subsequent buyers are more impacted by the health of the existing homes market where supply remains at very low levels. Nonetheless, the trends in April are broadly in line with Q1 and point to increases in activity in the mortgage market. As a result, we maintain our mortgage forecasts with an overall mortgage drawdown of €14 billion (2024: €12.6 billion) and growth of 3 per cent in the stock of mortgage balances.
