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Do you need a lawyer to refinance?

15 November 2019

Thinking about refinancing your home loan or borrowing money to do some renovations around the house? We have noticed recently with the low interest rates that more people are looking at refinancing.

So do you need a lawyer to help you refinance?

Not always!

Staying with your current bank

If you are staying with your current bank often you can use the mortgage which you have registered over your property as security for further borrowing. If you can use the mortgage you currently have in place, then you won’t need to see a lawyer.

However if your mortgage has been in place for a while and the priority figure which is registered with the mortgage is less than the value of the house or less than the value of the lending then this usually needs to be varied. To vary the terms of a registered mortgage you will need to come and see us.

What is a priority amount?

The priority amount if a figure noted on your registered mortgage at the time you first register it, and is usually 1.5 – 2 times the value of the loan or your house. Its generally set at a high level so that a bank can lend further money to you in the future without having to worry about any competing second mortgages you may have registered.

Changing banks

When you change banks you need a lawyer to help with discharging your mortgage with your current bank, and registering a new mortgage to your new bank.

If you are looking at refinancing we suggest you start sooner rather than later. At Preston Russell we have a team of people expert in helping you with any refinancing needs.