This article is for general information only and does not constitute regulated mortgage advice. All mortgages are subject to status and lender criteria. Finance 4 Homes Ltd is an Appointed Representative of Beneficial Ltd, authorised and regulated by the Financial Conduct Authority.
Remortgaging can be a useful way to move onto a more suitable mortgage deal, reduce monthly payments, raise funds, or avoid moving onto your lender’s standard variable rate.
But the real cost is not always obvious from the headline interest rate.
Some remortgage deals include free legal work or a free valuation. Others have a lower rate but a higher product fee. If you leave your current mortgage too early, you may also face an early repayment charge.
The point to remember is this: the cheapest-looking rate is not always the cheapest remortgage overall.
At Finance 4 Homes, we can help you compare remortgage options based on your circumstances. That means looking at the rate, fees, timing, credit position and longer-term plans before deciding whether switching may be suitable.
What Does Remortgaging Usually Cost?
The cost to remortgage can range from very little to several thousand pounds. The amount depends on your current mortgage, the new lender’s product, the size of your loan, your property value and whether you are borrowing more.
MoneyHelper’s guidance on mortgage fees and moving costs explains that mortgage-related costs can include lender fees, valuation fees, legal fees and early repayment charges.
| Remortgage cost | Typical amount | What it means |
| Early repayment charge | Often, 1% to 5% of the outstanding balance | Charged if you leave your current deal early |
| Exit fee | Up to around £300 | Admin fee from your existing lender |
| Product or arrangement fee | £0 to £2,000+ | Fee for the new mortgage product |
| Booking or application fee | Often £100 to £500, where charged | Paid when applying for some deals |
| Valuation fee | Often free, but can be £300 to £500+ | The lender checks the property value |
| Legal fee | Often free, but can be £300+ | Legal work to move the mortgage |
| Mortgage advice fee | Varies | Paid for advice and arrangement support |
These are broad guide figures only. Your actual cost will depend on your lender, balance, loan-to-value, credit profile and reason for remortgaging.
The Main Remortgage Fees Explained
Early Repayment Charge
An early repayment charge, often called an ERC, is usually the first fee to check.
This may apply if you remortgage before your current fixed, tracker, or discounted deal ends. It is normally charged as a percentage of your outstanding mortgage balance.
For example, if your mortgage balance is £200,000 and your early repayment charge is 2%, the charge would be £4,000.
This is an illustrative example only. Your actual costs will depend on your lender, balance, product, property and circumstances.
That is why timing matters. A new rate may look better, but if the charge for leaving your current deal wipes out the savings, remortgaging straight away may not be worthwhile.
If you are unsure whether you can switch before your deal ends, our guide on remortgaging during a fixed-rate mortgage explains the main points to consider.
Exit, Product, and Application Fees
Some lenders charge an exit fee when your mortgage is repaid or moved to another lender. This may also be called a mortgage exit administration fee, deeds release fee or final repayment fee.
A product fee, also known as an arrangement fee, is charged by the lender for the new mortgage deal. Some products have no fee. Others may charge £999, £1,499, £1,999 or more.
This is one of the easier costs to overlook. A lower rate with a high fee may not always work out cheaper than a slightly higher rate with no fee, especially if the mortgage balance is smaller or you only plan to keep the deal for a short period.
Some lenders may also charge a booking or application fee. This is less common than the main product fee, but it is worth checking because it may not be refundable if the mortgage does not complete.
Valuation And Legal Fees
When you move to a new lender, the lender usually checks that the property is suitable security for the mortgage.
Many remortgage deals include a free basic valuation. This is for the lender’s benefit, not a full survey for you.
Legal work is also usually needed when switching lenders, because the new mortgage has to be registered correctly. Some remortgage products may include standard legal work, valuations or cashback, depending on the lender and product.
Extra legal costs may apply if:
- You are adding or removing someone from the mortgage
- There is a transfer of equity
- The title is more complex
- You choose your own solicitor
- You need additional legal work outside the lender’s standard package
If legal work is included, it is still worth checking exactly what is covered.
Mortgage Advice Fee
A mortgage adviser may charge a fee for advice and arranging the mortgage.
Before taking advice, it can be sensible to check whether a financial firm is authorised, particularly if you are dealing with a new adviser or firm for the first time.
At Finance 4 Homes, any advice fee will be explained clearly before you proceed. We believe you should know what you are paying, when you are paying it and why.
A Simple Example Of Remortgage Costs
Here is a simplified example:
| Cost | Example amount |
| Outstanding mortgage balance | £200,000 |
| Early repayment charge at 2% | £4,000 |
| Exit fee | £150 |
| New product fee | £999 |
| Valuation fee | £0 |
| Standard legal work | £0 |
| Estimated total before advice fee | £5,149 |
This example is for illustration only. It should not be treated as a personalised estimate or a typical cost for every borrower.
In this example, the early repayment charge is the highest cost. If the borrower waited until the current deal ended, that £4,000 charge may not apply, depending on the mortgage terms.
If you are planning, our guide on how early you can remortgage explains when it may be worth starting the conversation.
Product Transfer Or Full Remortgage?
A product transfer means switching to a new deal with your existing lender. A full remortgage usually means moving your mortgage to a new lender.
A product transfer may involve fewer costs because:
- There is usually less paperwork
- Legal work is not normally required
- A new valuation may not be needed
- The process can be quicker
- There may be fewer affordability checks
However, staying with your current lender may limit your choice. A full remortgage can open up more options, but it may involve more checks and possible fees.
Neither route is automatically better. The right option depends on your current deal, income, credit file, property value and what you want the mortgage to do next.
Should You Add Remortgage Fees To The Loan?
Some fees can be added to the mortgage instead of being paid up front.
This can make remortgaging feel more affordable at the start, but it is not cost-free. If you add a fee to the mortgage, you may pay interest on it over time.
Before adding fees to the loan, it can help to consider:
- Whether you can afford to pay the fee upfront
- How much interest the fee may attract if added to the mortgage
- Whether a fee-free deal could work out cheaper overall
- How long do you expect to keep the new deal
- Whether you are prioritising lower upfront costs or lower total cost
For some borrowers, paying up front works. For others, adding the fee may be more manageable. The important part is understanding the total cost before deciding.
What If You Want To Borrow More?
Some people remortgage to raise extra funds. This might be for home improvements, family needs, or another major expense.
This can be possible, but it needs careful consideration. Borrowing more against your home may increase your monthly payments, extend your mortgage term, or increase the total interest you pay.
If the extra borrowing is being used to repay unsecured debts, extra care is needed because the borrowing may be secured against your home. Our guide on consolidating debt into a mortgage explains the risks and considerations in more detail.
This is why it is worth taking regulated advice before using a remortgage to repay unsecured borrowing.
Why Interest Rates Still Matter
Fees are important, but the interest rate still plays a major role in the overall cost.
The Bank Rate can influence wider borrowing costs, although individual mortgage rates also depend on lender criteria, product type, loan-to-value and market conditions.
If your fixed rate is ending, doing nothing could mean moving onto your lender’s standard variable rate. That may increase your monthly payment, depending on your current deal and the lender’s rate at the time.
This is why it is sensible to review your options before your current deal ends rather than waiting until the last minute.
How Long Does A Remortgage Take?
The time needed for a remortgage can vary.
A straightforward product transfer with your existing lender may be quicker. A full remortgage to a new lender can take longer because of affordability checks, valuation, legal work and underwriting.
If your case is more complex, such as self-employed income, missed payments, adverse credit, extra borrowing or a transfer of equity, it may take longer to complete.
Our guide on how long a remortgage takes breaks down the usual stages.
How To Keep Remortgage Costs Under Control
You can reduce the risk of unexpected costs by taking a structured approach.
Step 1: Check Your Current Deal
It can help to check when your current rate ends, whether an early repayment charge applies and whether there is an exit fee.
Step 2: Compare The Full Cost
It is usually better to look beyond the rate alone. Monthly payment, fees, charges and total cost over the deal period all matter.
Step 3: Check What Is Included
Some products may include legal work, valuations or cashback. Others may not. These extras can make a difference to the overall cost.
Step 4: Think About Your Future Plans
If you may move, repay a lump sum, borrow more or change your income, flexibility could matter as much as the rate.
So, How Much Does It Cost To Remortgage?
For some borrowers, remortgaging may involve limited upfront cost, especially if the current deal has ended and the new lender includes standard legal work and a valuation.
For others, the cost can run into thousands of pounds, particularly where early repayment charges, product fees, extra borrowing or legal work apply.
Before switching, the useful question is not just “what is the rate?” but “what will this cost me overall?”
This is where our mortgages and remortgages advice can help. Our service can help you consider your current deal, likely fees and suitable options before deciding whether a product transfer, full remortgage, extra borrowing, or waiting until your current deal ends may be the more practical route.
You can speak to us about your options if you would like support comparing the figures. We can help you understand the figures before any application is made.
We may charge a fee for arranging your mortgage. Your actual fee will be confirmed before the application.
Not all applicants will qualify. Product availability, interest rates and loan amounts depend on individual circumstances and lender criteria.
If you are experiencing financial difficulty, free and impartial debt guidance is available from organisations such as MoneyHelper, StepChange or Citizens Advice.
Finance 4 Homes Ltd is an Appointed Representative of Beneficial Ltd, which is authorised and regulated by the Financial Conduct Authority. The information on this website is intended for guidance purposes only and does not constitute advice.
Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up with your mortgage repayments.