How much it costs to remortgage in the UK
Remortgaging can be free – or it can cost you thousands of pounds in fees. You need to do the sums when switching to a new home loan.
Key takeaways
Remortgaging means paying off your existing mortgage with a new mortgage from a different lender
Homeowners usually remortgage to cut costs or borrow more money
There are usually costs to both leave your existing mortgage deal and take out a new mortgage
It’s important to add up the total costs and compare deals when remortgaging

What is remortgaging?
Remortgaging means taking out a new mortgage deal with a new lender on a property you already own.
Homeowners usually remortgage to either get a cheaper mortgage deal or to increase their borrowing against their home. You’ll also need to remortgage if you are removing someone, such as an ex-partner, from your mortgage.
Many people remortgage when the fixed term of their mortgage comes to an end. At the end of the fixed period, the interest rate will usually revert to the lender’s standard variable rate (SVR). Usually this will mean your payments will rise if you don’t remortgage.
But when you remortgage you need to take all the costs into account to work out the best deal for you.
Some lenders offer specific mortgage deals for remortgage customers. These differ from homebuyer mortgages.
What are remortgage costs?
Remortgage costs are the fees and charges you’ll usually have to pay when you remortgage. This covers a range of different costs, from the fees you might have to pay to leave your current mortgage provider to the costs of legal and administrative work when setting up your new home loan deal.
How much it’ll cost you to remortgage depends on your current loan and the deal you’re moving to. For some borrowers, the cost of remortgaging will be minimal – just a few hundred pounds or less. For others, though, they could run into thousands of pounds. So you need to factor in these costs when choosing a new mortgage deal.
Remortgage fees to exit your mortgage
When you leave your current lender, it may charge you:
Early repayment charges are normally levied if you switch deals while still in your initial term – this is usually the length of the fix and might be two, five, or ten years.
ERCs are usually calculated as a percentage of the amount remaining on your mortgage. ERCs often reduce the closer you are to the end of the fixed period.
Most homeowners wait until their existing mortgage deal ends before remortgaging to avoid early repayment fees.
But sometimes, if you find another deal that has a much lower interest rate, it can be possible to save money even after you’ve paid the ERCs. In these situations, do the sums to work out if your overall mortgage savings will exceed the charge.
The mortgage exit fee (also called the redemption, administration or discharge fee) is an administration fee that can be charged when you close your mortgage account, either through repaying it or remortgaging to another lender
The deeds release fee is a fee to cover the administrative costs of sending your property’s title deeds to the new lender. Some mortgages will let you pay it upfront at the start of your loan, and some lenders don’t charge it at all.
Early repayment charges
Exit fee
Deeds release fee
Remortgage fees for a new mortgage
When you take out a mortgage with a new lender, it may charge you:
Arrangement or product fees vary between mortgage products. This covers the admin of setting up your new mortgage. Some lenders might offer low interest rates and then charge a much higher fee to recoup their costs. Others charge a high fee, but a low interest rate.
A mortgage booking fee is a non-refundable fee charged by some lenders when you apply for a mortgage, typically to secure a fixed-rate, tracker, or discount deal.
Legal fees cover conveyancing work done by the lender’s solicitor, including adding the new lender to the property’s title deeds.
Valuation fees are for the lender to value your home and check it’s worth the mortgage amount.
Arrangement fee (also known as application or product fee)
Booking fee
Legal fee
Valuation fee
How to compare mortgage costs
When working out the total cost of a remortgage product you need to compare like-for-like.
To do this, add up the total cost of the mortgage over the fixed term.
So, for a two-year fixed mortgage the calculation will be:
(24 x monthly payment) + arrangement fee + other fees = total cost over two years.
If you compare five-year fixed mortgages, there will be 60 monthly payments, and so on.
Here’s an example of a cost comparison assuming a £250,000 mortgage repayable over 25 years:
Mortgage 1 | Mortgage 2 | |
---|---|---|
Interest rate fixed for 2 years | 6% | 5% |
Fees | £200 | £1,000 |
Monthly payments | £1610.75 | £1461.68 |
24 x monthly payments + fees | £38,858 | £36,080 |
This example shows that by paying a bigger fee in exchange for a lower rate, you can save money.
But each mortgage amount/interest rate/fee combination is different – so it’s important to do your calculations.
Do I need to pay for a solicitor to remortgage?
When you remortgage, you’ll usually need to pay a solicitor to handle the conveyancing.
Conveyancing is the legal paperwork that comes with moving on to your new deal. However, you might not have to pay for the solicitor yourself, as many mortgage lenders will cover the solicitor’s fees for you.
The one major exception here is if you’re switching to a different mortgage from the same provider. This is known as a ‘product transfer’ and it doesn’t require conveyancing, so you won’t need to get a solicitor.
Some lenders will offer you free legal work with your remortgage, which means you won’t have to pay for the solicitor yourself.
Finally, remember to factor legal fees into your calculations. A deal that offers free legal work might still be more expensive if it comes with a higher upfront product fee.
How much does it cost to remortgage?
The following table shows both the costs of leaving your existing mortgage deal, and the costs of taking out a new mortgage.
Fee | What is it? | How much does it cost? |
---|---|---|
Early repayment charge (ERC) | If you’re still in your tie-in period, your lender will charge you extra to pay off your mortgage early. It’s usually best to wait until the deal period ends before remortgaging to avoid this fee. However, you could also avoid paying it all at once by increasing the size of your new mortgage to cover it. | Around 1% to 5% of the amount remaining (outstanding balance) on your mortgage |
Exit fee | Some lenders charge a fee when customers leave to go to a new lender. This is regardless of whether they’re in a current deal or paying standard variable rate. This is often a small admin fee. | Typically around £50–£65 |
Deeds release fee | This is a fee to cover the administrative costs of sending your property’s title deeds to the new lender. Some mortgages will let you pay it upfront at the start of your loan, but the cost is the same either way. | Usually between £50 and £300, but some lenders won’t charge it at all |
When it comes to setting up your new mortgage, these are the costs to look out for:
Fee | What is it? | How much does it cost? |
---|---|---|
Product fees | This is often called an arrangement fee or an application fee. But when you search for remortgage deals on MoneySuperMarket, it’s listed as a product fee. It usually covers the cost of sorting out your new mortgage. However, some lenders might offer low interest rates and then charge a much higher fee to recoup their costs. So make sure you take this fee into account. | Usually about £1,000. But some fees on the
most competitive mortgage deals could be
£2,000 or more. You’ll also have the option
to add
this fee to your mortgage. This spreads the
cost and you’ll also get a refund if your
|
Booking fee | Some lenders might charge an extra one-time fee when you sign up to their best deals. Unlike the product fee, this needs to be paid when you submit your application. Therefore, it won’t be refunded if the mortgage doesn’t go ahead. | Around £100–£200 |
Valuation fee | Lenders need to know how much your property is worth before they give you a mortgage. So they’ll need to have it valued. Unlike buying a new home, you won’t need to pay for a homebuyer’s report or structural survey. | Up to £400 – although many lenders offer free valuations |
Conveyancing fee | When you get a remortgage, your new lender needs to be added to the property’s title deeds. This is known as conveyancing, and it needs to be done by a registered solicitor. This fee covers the lawyers’ fees. | Around £300 – although many lenders will offer it for free |
Broker fee | If you use a mortgage broker, they may charge a fee. However, there are plenty who get a commission from your lender instead. Some brokers charge a flat fee while others will want a percentage of the value of the mortgage. This usually ends up being much more expensive. | Anywhere from £300 to £600, or up to 1% of the value of the mortgage |
Can I remortgage without paying an Early Repayment Charge (ERC)?
You can remortgage without paying ERCs if you are out of your initial mortgage term.
Most fixed deals charge ERCs – but once the fix has finished, there will be no ERCs to pay.
Most lifetime trackers or SVR mortgages don’t charge ERCs.
If you need to pay an ERC, you might be able to add it your new mortgage and spread the cost. However, this will mean paying interest on this amount too. Additional borrowing will also impact your loan-to-value (LTV).
Will it be cheaper to stay with my current lender?
Sometimes it can be cheaper to stay with your current lender – but every situation is different. If your tie-in period ends and you’re looking to remortgage, switching to one of your lender’s other deals – a product transfer – may be easier and cheaper.
You could also consider finding a cheaper remortgage deal and then contact your provider to see if it will match it.
How long does it take to remortgage?
A product transfer with the same lender can be done relatively quickly.
Remortgaging takes longer – typically a few weeks, as the lender will need to carry out a valuation, affordability checks, and so on. Whatever you decide to do, it’s always wise to think about the remortgaging process a few months before your existing fixed rate ends. By acting in advance, you’ll avoid having to pay more expensive standard variable rates.
When is the best time to remortgage?
The best time to find a remortgage deal is usually when the tie-in period on your existing deal ends.
Once the tie-in period ends, your lender will switch you onto its standard variable rate. This is almost always higher. But if you remortgage before the end of your introductory deal, you’re likely to have to pay ERCs.
However, you can still time it to move immediately once your existing deal ends. You don’t need to wait until the end of your deal to find a new mortgage. When a lender makes an offer, it’s usually valid for around three to six months. This way, you can set up a new deal ready to kick in once your tie-in period ends. To find out more, check out our guide on the best time to remortgage.
Compare mortgages with MoneySuperMarket
Whether you’re buying a new home or looking to remortgage to a new deal for your current property, finding a great deal couldn’t be easier with MoneySuperMarket. We compare results from more than 90 different lenders covering the whole of the market. Plus, we’ll show you exactly what upfront costs will be charged on your new mortgage deal, so you can pick the home loan deal that’s right for you.
Your home may be repossessed if you do not keep up repayments on your mortgage