Costs of Remortgaging

When it comes to remortgaging there are various costs that you might incur when going through the process. Don’t let this put you off because in some cases, these costs might actually be worth it as it could save you money in the long run!

This quick guide will explain some of the fees involved and charges home owners looking to remortgage are likely to face, not all of these costs may apply to you but it will give you a rough idea.

Leaving your current mortgage agreement

An early repayment charge, this is a fee applied to homeowners remortgaging before their current mortgage agreement ends. Typically, initial mortgage agreements are around 3-5 years, so if you decide to remortgage earlier, there could be a cost.

The fee is usually a percentage of the outstanding mortgage debt and lenders will charge you for exiting the agreement early.

Arrangement Fee

This is a fee lenders can charge to cover their admin fees for arranging the mortgage, they are usually a fixed amount or a percentage of your mortgage.

Professional Fee

If you use a mortgage adviser to assist with remortgaging your home, there may be a fee attached for their time and expertise. This is usually charged on application and on a case by case basis.

Legal Fee

With all mortgage applications, including remortgages you have to pay solicitor fees to ensure the legalities involved with your property are done correctly. Some lenders may cover the legal costs within the remortgage deal, your mortgage adviser will be able to check this before you apply.

Valuation/Survey Fee

Your new lender may carry out a survey on your home to ensure that it offers the correct security and that the remortgage amount matches the market value of the property itself. Again, some lenders cover this as part of the remortgage deal and your adviser will be able to confirm this.