There is no single standard remortgage cost. You might pay little or nothing in switching fees, or face several thousand pounds once product fees, legal work and early repayment charges are included. What matters is the cost of the options available to you, not just the interest rate in an advert.
This guide focuses on replacing the mortgage on your own home with one from another lender, without moving house. Buy-to-let, ownership changes and additional borrowing can involve different costs and requirements.
Remortgage fees at a glance
Not every fee applies to every mortgage. Use this as a checklist, then confirm the figures in your mortgage illustration, existing lender's charges and legal quotation.
| Cost | Paid to | When | What to check |
|---|---|---|---|
| Early repayment charge (ERC) | Your current lender | When the existing mortgage is repaid | May apply during a charge period; check the amount and end date. |
| Exit or account closure fee | Your current lender | Usually when the account is closed | May still apply after an ERC period ends. Check your agreement. |
| Product or arrangement fee | Your new lender | Upfront or added to the loan, if permitted | Some products have no fee; others charge for the chosen deal. |
| Valuation fee | Your new lender or its valuer | Usually during the application | A standard lender valuation may be included at no charge. |
| Legal fees and expenses | Your solicitor or conveyancer | As agreed, before or at completion | Basic work may be included; extra work and expenses may not be. |
| Mortgage broker fee | Your broker | Depends on the broker's terms | I do not charge a mortgage broker fee. Other brokers may charge. |
Also check for separate booking, application or funds-transfer charges. Ask which fees are refundable if the application does not complete. Fee names and payment arrangements vary.
What does it cost to leave your current lender?
An early repayment charge can apply if you repay the mortgage during its charge period. It is often calculated as a percentage of the amount repaid. For example, a 2% charge on £200,000 would be £4,000. That is an illustration, not a standard charge.
Ask your lender to confirm the charge for your intended completion date. If your mortgage has more than one part, check each part. A separate exit or account closure fee may remain payable even when there is no ERC.
Starting an application early is different from completing early. You can explore options ahead of time and coordinate completion with the relevant charge end date. Read When should I remortgage? for more on planning the switch.
What fees could your new mortgage have?
Product or arrangement fees
A product fee is a charge for the mortgage deal you choose. A product with a fee may have a lower rate than a no-product-fee alternative, but it is not automatically cheaper overall.
Some lenders let you add this fee to the mortgage. That reduces what you pay upfront, but increases the borrowing and normally means paying interest on the fee. Check eligibility, refund terms and the effect on the overall cost before deciding.
Valuation fees
The new lender assesses the property as security for the loan. A standard valuation may be included in the remortgage package; otherwise, a fee may apply. Check what is included before paying for any additional survey yourself.
How much are remortgage solicitor fees?
There is no single legal fee for every remortgage. The property, required work and lender package affect what you pay. Ask for an itemised quotation showing VAT where applicable and payments to other organisations, often called disbursements.
Some lenders cover basic legal work through an appointed firm. Others may offer cashback towards costs. Check who appoints the conveyancer, what is covered and when any cashback is paid.
Does free legal work cover everything?
Not necessarily. Extra charges can arise for adding or removing an owner, lease extensions, shared ownership work or resolving discrepancies in the property records. Transferring surplus funds may also carry a charge. Tell the conveyancer about any changes you need and ask for confirmation of additional costs.
A lender-funded package may cover work for the lender without covering separate legal advice for you. Confirm who the conveyancer acts for and whether you need your own advice.
Is a lower rate worth paying a product fee?
Here are two hypotheticalrepayment mortgages, each for £200,000 over 25 years. We compare the first 24 months of a two-year fixed rate. Deal A's £999 fee is paid upfront, not added to the mortgage.
| What we compare | Deal A | Deal B |
|---|---|---|
| Hypothetical two-year fixed rate | 4.30% | 4.50% |
| Product fee paid upfront | £999 | £0 |
| Monthly repayment | £1,089.08 | £1,111.66 |
| Balance after 24 payments | £190,683.82 | £190,935.22 |
| Interest over those 24 months | £16,821.82 | £17,615.18 |
| Interest plus product fee | £17,820.82 | £17,615.18 |
Deal A has the lower rate and monthly payment. However, Deal B costs approximately £206 less in interest and product fees over these two years. The interest saving on Deal A does not quite recover its £999 fee.
Part of each repayment reduces your debt, so repayments alone are not the same as borrowing costs. The calculation accounts for the different balances remaining after 24 payments.
This example assumes monthly interest, payments at month end and no overpayments, cashback or other charges. Figures are rounded from unrounded calculations. It is not a current offer, a full-term cost comparison or a personalised mortgage illustration. Actual lender calculations and first payments can differ.
For a real comparison, include all applicable fees and incentives, use the same borrowing and repayment term, and check the payments and balance at the same end date. Also consider affordability, overpayment rules and any charge for leaving the new deal early. Read the full mortgage illustration, including its annual percentage rate of charge (APRC) and what happens after the initial deal ends.
Is it cheaper to stay with your current lender?
A straightforward product transfer means selecting another deal with your existing lender. It usually avoids new conveyancing, but a product fee can still apply. Check any early-switching conditions too.
Staying may cost less, or another lender may offer a suitable option whose savings justify the switching costs. Compare both routes. The product transfer vs remortgage guide explains the differences beyond price.
Your before-you-switch checklist
- Confirm the balance, remaining term and charge end dates.
- Get a full breakdown of existing-lender, new-lender and legal fees.
- Separate money needed upfront from costs added to the loan.
- Check what free legal work includes and when cashback is paid.
- Compare your current lender's offer with suitable alternatives.
- Check refund terms before paying application or other fees.
- Plan completion and budget for the first new mortgage payment.
Get remortgage advice with no broker fee
I can review your current mortgage, discuss your plans and compare suitable options available for your circumstances. You do not need to decide whether to stay or switch before speaking to me.
I do not charge a mortgage broker fee. If I arrange your mortgage, I receive commission from the lender on completion. Lender fees, legal costs and early repayment charges may still apply. I will explain the relevant costs before you decide to proceed.
Book a free remortgage review or find out more about my remortgage advice service.
This guide provides general information, not a personal mortgage recommendation. Costs, eligibility and lender terms vary.
Your home may be repossessed if you do not keep up repayments on your mortgage.