Remortgaging can be an excellent way to secure a better rate, reduce your payments, or access some of your property's equity, but it's essential to understand the costs involved to make an informed decision. Below, we break down the typical fees and costs associated with remortgaging, so you know what to expect.
Key Remortgaging Costs
- Arrangement or Product Fees
Lenders often charge an arrangement or product fee to set up a new mortgage. This fee usually range from £0-999, depending on the mortgage product and lender. While lower-rate deals can sometimes have higher fees, a slightly higher rate with a lower fee may be better for certain budgets. At Equinox, we’ll help you weigh these options to find the best overall value for your situation.
- Valuation Fees
Some lenders require a property valuation when remortgaging, which assesses the current market value of your home. Some may charge you for the privilege, but most offer this for free nowadays.
- Legal Fees
Although remortgaging involves less legal work than a property purchase, there are still some legal processes required. Basic remortgage legal fees generally range between £300 and £500. Many lenders cover legal fees as part of the remortgage package, if they dont then they will usually offer a Cash back alternative, we can then guide you to trusted, cost-effective solicitors.
- Early Repayment Charges (ERC)
If you’re still within a fixed-term deal, your lender may charge an early repayment fee. This cost is usually a percentage of your remaining balance, often between 1% and 5%. It’s important to check if the timing of your remortgage incurs an ERC and to weigh this against potential savings from a new rate.
- Broker Fees
At Equinox, we believe in clear, fair pricing. Some mortgage advisers charge fees for arranging your remortgage, but our fee structure is designed to offer transparency and value, with no hidden surprises. Often we don't charge a fee at all for a remortgage, but it is circumstance dependent.
Additional Costs to Consider
- Exit Fees
Sometimes lenders add a smaller "exit" or "admin" fee when you end your mortgage. This fee is usually £50 to £300, depending on the lender. Again, we’ll help you check if this applies to your situation.
- Consider the Overall Cost
When deciding on a remortgage, it’s important to calculate the total cost of fees alongside any savings from a lower interest rate. Our advisers will take you through these calculations, helping you make a clear comparison between deals to find the one that truly saves you money.
Making Your Remortgage Affordable
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With a wide range of lenders and deals at our fingertips, we can help you minimise remortgage costs and maximise savings. By working with Josh, you’ll get expert guidance on managing fees, selecting the most cost-effective options, and even potentially securing fee-free deals.
Remortgaging costs can vary, but with careful planning and a whole-of-market approach, we can make the process as affordable and straightforward as possible. Let’s make your remortgage work for you.
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