Remortgage and Standard Securities

Some clients will find themselves in a situation where they wish to remortgage or take a standard security over their property. This can be for a number of reasons, for example:

• They wish to free up a lump sum of money; 
• They wish to make their mortgage payments smaller;  
• They wish to obtain a better interest rate on their mortgage;  
• They wish to reduce the term time of their mortgage; or 
• To consolidate other debts. 

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Remortgaging or taking a new security over your property is not necessarily right for everyone and you should take financial advice before instructing a solicitor.  

If, after taking advice, you wish to proceed you should have your lender issue your loan papers to your solicitor who will thereafter guide you through the process of completing the security. This will involve liaising with the lender, completing the loan papers and having them signed, ordering the loan funds, ordering searches over the property, redeeming your previous loan (in a remortgage transaction) and having the new security registered and the previous security discharged with the Registers of Scotland.  

The whole process can be completed within a few weeks after the issuing of loan papers.  

Discharging your Standard Security 

In Scotland, unlike England, at the end of your mortgage term the security that the bank or building society have over your property is not automatically discharged by them. Scots Law requires that a solicitor must be sought in order to have the security removed from your title deeds. At the end of your mortgage term, when you have repaid the full amount of your loan, the bank or building society will send you a copy of your title deeds (if they still hold them). They will enclose with your deeds a note advising you to arrange to have your mortgage discharged. 

The process of discharging your mortgage in Scotland involves the preparation of a discharge Deed. This Deed is then delivered to the bank with proof of the repayment of your loan. The bank will have an authorised signatory sign the Deed and return it to your solicitor. Your solicitor will then prepare the forms required to be sent to the Registers of Scotland along with the signed Discharge Deed.  

It can take a couple of weeks for the Registers of Scotland to process the application. Once they have done so the Registers of Scotland will send your solicitor an updated title deed which will show a clear security section. You now have the peace of mind of knowing that the bank no longer has a registered charge over your property.