How much will it cost to remortgage?

• Remortgaging costs £0-£2,000 with your current lender vs £1,000-£3,000+ when switching lenders
• Early repayment charges (1-5% of mortgage balance) are the biggest potential cost when breaking fixed deals early
• Main setup costs include conveyancing (£300-£800), arrangement fees (£1,000-£2,000), and valuation (£0-£500)
• Compare total cost over your intended term, not just interest rates - lower rates don't always mean cheaper deals
• Product transfers take 2-4 weeks while switching lenders typically takes 4-8 weeks to complete

Remortgaging could cost you £0 or thousands upfront depending on your situation.

Product transfers with your current lender cost between £0-£2,000, while switching lenders typically costs £1,000-£3,000+.

Quick remortgage cost breakdown:

• Stay with current lender: £0-£2,000 (mainly arrangement fees)
• Switch lenders: £1,000-£3,000+ (includes setup and exit costs)
• Average remortgaging cost: £1,500-£2,500 for a typical lender switch

Key cost to consider: Conveyancing fees (£300-£800), arrangement fees (£0-£2,000), valuation fees (£0-£500), and exit fees (£0-£300).

If you’re switching lenders, you could come across some exit fees, here’s a breakdown of what you might typically see:

Early repayment charges (% of your mortgage)

Early repayment charges (ERCs) are fees your current lender charges for breaking your mortgage deal before it ends. These typically range from 1-5% of your outstanding mortgage balance and decrease over time. For example, a £200,000 mortgage might have a 3% ERC in year one (£6,000), dropping to 2% in year two (£4,000), and so on.

1. When they apply

ERCs usually apply during fixed-rate, tracker, or discounted periods, commonly for 2 to 5 years from your mortgage start date.

2. How to calculate if it’s worth paying

Compare your total switching costs against potential savings. Calculate your ERC plus all other fees (conveyancing, arrangement, valuation fees) for the complete switching cost. For example, if your total costs are £4,500 but you save £300 monthly, you'll break even in 15 months. Use this formula to work out how long it would take you to breakeven: Total remortgage costs ÷ monthly savings = break-even months.

Learn more: When should I remortgage?

3. Can I avoid paying early repayment charges?

Start shopping for new deals 6 months before your current one expires so you’re ready to switch when you deal ends to avoid ERCs entirely. Other than this there is no way to avoid them completely unless your lender is prepared to waive them.

4. Is it ever worth paying my ERC?

There are two situations where you could find it worth paying your ERC:

• If rates drop significantly and you could get a much lower monthly payment that you currently have, calculate whether future savings justify current ERC costs.
• You think that interest rates could increase dramatically by the time your current deal runs out.

If you are going to pay your ERC, speak to professionals and ensure it’s the right decision for you. Without a solid understanding you could end up losing money.

Deeds release fee (£0 - £300)

Also known as an ‘admin charge’, this is paid to your existing lender so they can forward the property’s title deeds to your solicitor. This fee typically ranges from £0-£300. Sometimes, this fee may already be included if you paid a mortgage account fee when you first took out your loan, so check your original mortgage documentation.

Unlike early repayment charges, deeds release fees apply regardless of when you leave - whether you're switching at the end of your deal or breaking early. While these fees aren’t typically negotiable, it's always worth asking your lender if they can waive or reduce them, especially if you're a long-standing customer.

You’ll also face fees to establish your new mortgage, remember, if you’re simply swapping mortgage deals with the same lender, the majority of these won’t be applicable.

These remortgage setup costs typically range from £500 to £2,500+ depending on your property value, mortgage deal, and chosen lender. Understanding these fees helps you budget accurately.

Learn more: A guide to remortgaging

Conveyancing costs (legal fees) (£300 - £800)

When remortgaging, you’ll need a conveyancer to help you with the legal process of transferring your mortgage from one lender to another – just like when you took out your original mortgage.

Your conveyancer will review the new mortgage offer, conduct any necessary searches, liaise with both lenders, arrange the redemption of your old mortgage, and register the new mortgage with the Land Registry.

 Fees typically vary from conveyancer to conveyancer, ranging from £300 to £800. Some lenders offer free legal services as an incentive to remortgage with them. But keep in mind that you won’t be able to pick your conveyancer, and you might not get the fastest service.

Tip: If you’re adding or removing someone from your title deeds as part of the remortgage, let your conveyancer and lender know as this will incur additional charges.

Arrangement fee (£1,000 - £2,000)

When looking at how much remortgaging costs, an arrangement fee will apply in most cases. It might be known as a product fee or application fee; these cover the admin costs for the lender.

Arrangement fees are one of the more expensive costs of remortgaging, expect to pay at least £1,000 to £2,000, although it could be higher.

Most lenders will let you add this cost to your mortgage loan. However, remember that this fee will also be subject to interest, making it more expensive long-term than paying it upfront.

Valuation fee (£0 - £500)

Your new lender will need to conduct a valuation for their security to ensure the value of your home is worth the mortgage amount.

The good news, many lenders will include this in your remortgage package for free. If it’s not included, you can expect to pay around £300 to £500, although it could be more depending on the value of the property.

Mortgage broker fee (£0 - £600)

You don’t have to use a mortgage broker, but it can often be helpful. They’ll compare mortgage deals for you, including calculating the cost of remortgaging and when the best time to remortgage is for you.

Make sure you understand how much they’ll charge before you use their services. Some might charge a flat rate of somewhere between £300 and £600. Others may charge a percentage of your loan amount up to 1% or 2% (which can be expensive).

There are also fee-free brokers out there who will be paid by the lenders, a good option to save yourself some money.

Guide: Do I need a mortgage broker?

When comparing remortgage costs, you should look at the total cost of borrowing over your intended mortgage term, not just the upfront fees or interest rate alone.

How to work it out:

1. Calculate total monthly payments over your planned period (e.g., 2-5 years)
2. Add all upfront costs (arrangement fees, conveyancing, valuation, etc.)
3. Compare the combined total - this gives you the true cost.

Here’s an example of comparing remortgage costs:

Deal B saves £1,260 over 2 years despite having a 0.4% higher interest rate, proving that low fees can outweigh higher rates in some cases. Always make sure your calculations are correct to get the very best deal.

Whether remortgaging is right for you depends on your financial goals and current circumstances. Common reasons include securing a better interest rate, releasing equity for home improvements, or consolidating debt.

However, remortgaging isn't always the best option - especially if you're facing early repayment charges or your current deal already offers competitive rates.

Before committing to the costs outlined above, it's worth understanding all the reasons people choose to remortgage and whether any apply to your situation.

Learn more: Why do people remortgage?

Do I need to pay a conveyancer to remortgage?

Yes, you need a conveyancer when switching lenders, but not for product transfers with your current lender or if your new lender covers the costs. The conveyancer handles the legal transfer of your mortgage between lenders, conducts searches, and registers the new mortgage with the Land Registry.

How long does it take to remortgage?

Product transfers: 2-4 weeks since you're staying with your current lender and minimal paperwork is required.

Switching lenders: 4-8 weeks typically, though it can take longer if there are complications. The process involves application, valuation, legal work, and completion.

What are remortgage costs?

Remortgage costs are the fees you pay to switch your mortgage to a new deal, either with your current lender or a different one. These cover the administrative, legal, and setup work required to arrange your new mortgage.