20th June 2025

Understanding Remortgage Costs & Fees in the UK

Remortgaging is a common financial move for homeowners looking to reduce monthly payments, switch to a better deal, or release equity. However, while the benefits can be substantial, it's crucial to understand the costs involved. Some fees are often overlooked, and these can significantly impact your savings. Knowing what to expect allows you to budget effectively and compare offers accurately.

In this guide, we'll break down the typical fees associated with remortgaging in the UK. We'll also offer practical tips and answer frequently asked questions to help you make confident, informed decisions.

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Key Remortgage Fees You Should Know

Arrangement Fee (Also Called a Product Fee)

This is a charge from the new lender for setting up your new mortgage deal. It can range from £0 to £2,000. While many deals with lower interest rates have higher arrangement fees, not all require an upfront cost - some lenders allow this fee to be added to your mortgage balance.

Important: Adding fees to your loan increases your overall debt and interest payable.

Valuation Fee

Some lenders charge a fee to assess your property's current value. This is more common if you're switching lenders. Fees vary by provider and property value, but many lenders offer free valuations as part of remortgage packages.

Solicitor Fees (Legal Costs)

You'll need a conveyancer or solicitor, especially when switching lenders. These fees typically range from £300 to £800. Some lenders include free legal services in their deals, but be sure to check the scope of what's covered.

Early Repayment Charge (ERC)

If you remortgage before your current deal ends, your existing lender may charge an ERC. This is usually a percentage of your outstanding loan—commonly between 1 - 5% depending on how early you exit.

Always check your original mortgage terms before switching.

Exit Fee / Deed Release Fee

Charged by your current lender for closing your existing mortgage. This fee is usually between £50 and £300 and is sometimes listed as a discharge fee or account closure charge.

How to Compare Remortgage Costs Effectively

Use Total Cost Calculations

Rather than focusing on headline rates alone, calculate the total cost over the fixed period, including:

• Interest
• Arrangement fees
• Legal fees
• Any ERCs

Many online remortgage calculators can help with this.

Consider Free Legal or Valuation Offers

While deals with free legal work or valuation may offer convenience, they're not always the cheapest in the long run. Weigh the total cost alongside these perks.

Work with an FCA-Authorised Broker

A regulated adviser can compare the whole market, identify hidden costs, and ensure you're selecting the right deal for your needs.

Practical Tips for Managing Remortgage Expenses

1. Start Early
   Begin reviewing options 3 - 6 months before your current deal ends to avoid paying an ERC or reverting to a higher Standard Variable Rate.
2. Negotiate Fees Where Possible
   Some brokers or lenders may waive or reduce arrangement fees, especially on larger mortgages.
3. Check for Porting Options
   If you're moving home and remortgaging, check if your current deal is portable to avoid ERCs.
4. Watch Out for Interest on Added Fees
   Avoid adding arrangement fees to your mortgage unless necessary—interest will apply over time.
5. Always Review the Key Facts Illustration (KFI)
   This document outlines all associated fees and the total cost, helping you make side-by-side comparisons.

Frequently Asked Questions

How much does it cost to remortgage in the UK?

Typical remortgage costs range from £500 to £2,000, depending on fees, legal work, and whether you're exiting your current mortgage early.

Can I remortgage for free?

Some lenders offer fee-free remortgage deals with free valuations and legal work, but the interest rate may be higher.

What happens if I remortgage before my fixed term ends?

You may have to pay an Early Repayment Charge, which can significantly reduce the financial benefit of remortgaging early.

Are remortgage solicitor fees always required?

Yes, especially if you're changing lenders. Some deals include free legal services, but check what's covered.

Do I need a mortgage adviser to remortgage?

It's not mandatory, but using an FCA-authorised adviser can help you access a broader range of products and avoid costly mistakes.

Your home may be repossessed if you do not keep up repayments on your mortgage.
This content is for informational purposes only and does not constitute financial advice. Always speak to an FCA-authorised mortgage adviser before proceeding. Fees, terms, and product availability are subject to change and depend on individual circumstances.

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