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UK MORTGAGE CENTRE

The cost of remortgaging

June 14, 2024

the cost of remortgaging

Due to remortgage soon but unsure what to expect?

Or perhaps you want to obtain a better understanding of the costs involved so you can budget accordingly?

When considering your options, it’s important to take into account any fees due.

Fortunately, the team at UKMC is on hand to help.

Are there fees when remortgaging?

Find yourself typing ‘how much does it cost to remortgage’ into an online search engine?

What answers can you expect?

First, there be an early repayment charge, which is a penalty applied if you repay your mortgage before the end of the agreed term for your existing arrangement.

The precise sum owed is usually calculated as a percentage of the remaining mortgage debt, for example 5%. However, it depends on the precise terms and conditions of your product and the remaining balance.

In most cases, homeowners choose to wait until their current deal ends before remortgaging to avoid early repayment fees.

However, it’s still possible to save money even if you’re required to pay a penalty – particularly if you find an alternative deal with a significantly lower interest rate.

Second, there may be an arrangement fee to pay when you remortgage – usually set by your lender for the new deal. This could also mean you have to pay an exit fee to leave your existing mortgage arrangement – again, check the terms and conditions.

Occasionally there are legal fees to pay, for example if you need to have your property valued. However, some mortgage lenders will offer to pay the solicitor fees on your behalf.

If you’re asking ‘how much does it cost to remortgage a house’, then the answer depends on the terms of your current deal as well as those attached to the one you’re switching to.

Want to make sure you don’t miss anything? Then contact a trained advisor, like those at UKMC, who can break down and explain the different costs involved.

Do I need to pay for a solicitor?

In short, yes.

A solicitor is usually required to handle the paperwork associated with a remortgage, and they’ll charge a fee for their services.

As mentioned above, in some cases a solicitor’s fees will be paid by the mortgage lender as part of their service in an attempt to persuade you to accept their offer.

Of course, this can be tempting because it means you’ll have one less thing to worry about when it comes to how much it costs to remortgage a house.

However, be sure to check the detail of every arrangement because terms and conditions differ between lenders.

If a lender doesn’t cover the costs of hiring a solicitor, you’ll need to factor them into your budget.

Costs involved when remortgaging

In summary, for those asking ‘how much does it cost to remortgage in the UK’, there are several elements to bear in mind.

They include early repayment charges, arrangement fees, exit fees, legal fees, and valuation fees.

The exact cost of remortgaging is determined by your current loan and the new deal you are switching to.

The best way to obtain clarification on how much remortgaging is likely to cost is to contact a specialist mortgage advisor who can clarify each stage of the process.

That’s where UKMC comes in.

How we can help

We’d always recommend you speak to as suitably trained advisor or mortgage broker to understand all of the potential costs – and the benefits too, of course – associated with remortgaging a house in the UK.

Put simply, we can assist with finding the most appropriate deal for your circumstances.

So, if you’re existing arrangement is due to end in the next six months, or if you want informed guidance about what your options will be when it does, then ask a team member.

Our experience and know-how ensure you won’t miss out. Don’t want to take our word for it? Then try reading more than 400 positive reviews on Trustindex.

If you’re looking to secure a new remortgage deal, why not book your consultation today?

Our remortgage advice process is quick, easy and hassle-free from the moment you first reach out to us.

If you can’t schedule a call straight away, then request a callback at a more convenient time.

Alternatively, complete our online contact form or book your own appointment.

Disclaimer

UK Mortgage Centre is a trading style of Refresh Mortgage Network Limited. Refresh Mortgage Network Limited is authorised and regulated by the Financial Conduct Authority. FRN – 826982. Registered in England & Wales: 11614569. As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages. The Financial Conduct Authority does not regulate will writing and taxation and trust advice.