How much does it cost to remortgage?

When you switch your mortgage deal to a new lender, it is called remortgaging. We can help you understand what costs may be involved.  

 
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Reasons to remortgage

To save money. By moving to a new mortgage lender, you may be able to reduce the interest rate or the amount you are repaying each month.

Flexibility. A new deal might let you overpay on your payments or let you take a mortgage payment holiday.

There are fees and charges involved when you remortgage. Make sure you consider all the costs and whether any potential savings outweigh the costs of any fees.

What fees will I pay when I remortgage?

You may have to pay the following fees when you remortgage:

Early repayment charge

An early repayment charge may apply when you leave your existing lender. It’s usually between 1% and 5% of your remaining mortgage value. Check the terms of your mortgage to see if they apply.

If you remortgage when your mortgage lender tells you that you’ll be moving onto a Standard Variable Rate, you may avoid paying this fee. 

Deeds release fee

Your existing lender may charge a fee for sending the deeds of your house to your new lender.

Different lenders will charge different fees, and some may offer cheaper rates or free valuations. 

Legal fees

You’ll need a conveyancer to complete the legal paperwork. Some lenders offer their own legal services as part of a remortgaging deal.

Valuations

You might need to get your house valued to see how much it’s worth. You may be able to get a better rate of interest on your new mortgage if you have a low loan to value ratio.

The cost of getting a valuation will depend on the size and value of your house.

Booking fees

Some lenders will charge this upfront. It covers the cost of ‘booking’ the mortgage while the application goes through.

It can also be called a reservation or application fee.

Arrangement fees

These fees are for the lender’s management costs. They can be quite costly, but you may be able to add them to your mortgage to spread the cost over the term of your mortgage.

Not all lenders charge an arrangement fee, and some may let you pay the cost upfront. 

If you decide to add the costs to your mortgage, you’ll pay interest on these fees.

You could lose your home if you don’t keep up your mortgage repayments

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Remortgaging help

Remortgaging is when you get a new mortgage deal with a different provider. Make sure you’re in a good position to make a decision with our guides on remortgaging.

Learn more about remortgaging

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Remortgaging help

Remortgaging is when you get a new mortgage deal with a different provider. Make sure you’re in a good position to make a decision with our guides on remortgaging.

Learn more about remortgaging