What Are The Costs Of Remortgaging?

Valuation and legal fees

When you remortgage you will usually have to pay out a few hundred pounds for a property valuation for your new lender and conveyancing.

Some mortgage lenders try to lure borrowers from their rivals by covering these costs themselves.

However, the interest rate can be higher on this kind of deal, so it may not be as good as it seems.


Set-up fees

You are also likely to face a set-up fee (often called an arrangement or reservation fee) of anything from a couple of hundred pounds to £700 or more.

Again, you may be able to get fee-free deals, but these too come at a price in terms of interest rate.


Adding it all up

You may find it's cheaper to pay valuation, solicitors and set-up fees to get a lower interest rate.

Or, you may find that once you've taken these and any early redemption penalties on your existing mortgage into account, it's cheaper to stay put for the time being.

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