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Re-mortgaging means paying off an existing mortgage and taking out a new mortgage. People re-mortgage for a number of reasons. Homeowners may choose to refinance for any number of reasons, including: lower interest rate offer by another bank, to obtain funds for an extension to your current property etc.

The Process

  1. Your title deeds are currently with the bank of financial institution that you have a mortgage with. You will need to sign an authority authorising Browne & Murphy Solicitors to take up your title documents.
  2. Once your new bank has formally approved your re-mortgage a Letter of Offer setting out the details of the loan, the amount, repayment term, the interest rate, monthly repayments, conditions etc, is issued to you and a Loan Pack comprising of the mortgage documentation is issued to our office. You should go through the loan offer in detail and make sure that the rates and term in the loan offer correspond with what you have agreed with your bank. When your Solicitor has checked the Loan Pack and discussed key terms with you, various documents are signed and completed to enable the new Bank to proceed with your re-mortgage.
  3. The loan offer will include all the particulars of the mortgage such as rates and repayment term, but will also set out various conditions in relation to life cover and household insurance. See below further details on life cover and household insurance
  4. If you have made any extension or altering of the property since your initial mortgage it will be necessary to ensure that all the correct planning documents are in place for the re-mortgage.
  5. Your solicitor will review the documents received from your bank and you will need to attend your solicitors office to sign the documents. Your solicitor will then complete and send the documents to your bank in order to request funds.
  6. Your solicitor will request redemption figures from your old bank as your previous mortgage will need to be refunded from the funds received from your new mortgage lender.
  7. Your solicitor, on recent of the funds, will complete the statement of account and the funds will be released to you (if there are funds after the redemption of the previous mortgage)

If you have any queries,  please Contact Us to arrange a convenient appointment.

Life Cover/Life Insurance

In the majority of cases, banks require you (and your partner in the case of a joint mortgage) to have life insurance cover in place when taking out a mortgage. This is life cover in the event that either you (or your partner) dies before the mortgage has been repaid. The insurance cover is designed to cover the mortgage amount outstanding, at the very minimum, depending on the type of life cover selected.

There are different types of life cover. Generally banks require that you have mortgage protection.  With this policy, should you die with an outstanding loan on your home, your mortgage will be cleared. The disadvantage to this type of mortgage is that it declines in line with your mortgage – so even though you initially received protection for your total mortgage, 25 years down the line this will have reduced significantly. In addition, if you move home after 10 years, and are 10 years older at the time, you might find getting a new policy has become more expensive.

With term life insurance, your cover is not limited to the size of your mortgage. So, if for example you take out a policy to cover a mortgage of €350,000, should you die when the outstanding mortgage has fallen back to €100,000, your estate will still be entitled to the full amount. With such a policy you will not need to make changes when you re mortgage, which means you would not have to be reassessed for life cover. The type of mortgage you choice will depend on your circumstances.

Note: with commercial property banks do not always require life cover.

Property Insurance

This is insurance that covers damage to property, e.g. damage from fire, flood, among other risks. It is a requirement by all financial institions to insure your home/property. Home insurance is also advisable even if you are a cash purchaser. Your home is probably the most valuable asset that you have and it goes without saying that this asset should be properly protected.

Household Insurance is made up of two parts, namely – building insurance and content insurance.

Buildings – This part covers buildings which are generally defined as the main structure, including all domestic outbuildings, such as garages, garden sheds and also walls, gates, fences. Every home is different. When insuring your buildings you are not insuring the sale value of the home as is a common misunderstanding, but the rebuilding cost of your property and the contents of your property.

Contents – This covers your furniture, furnishings, household goods, and other appliances, food and drink, televisions, videos, computers and audio equipment, clothing, personal effects and valuables such as jewellery and personal money up to the stated limits.

There can be differences between policies in terms of what they exclude and the extras included. When you buy insurance, it is essential to read the policy details first so you are aware of what your policy covers does and dos not cover.

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