How Much Does It Cost to Remortgage in the UK?

How much does it cost to remortgage? The short answer

The cost to remortgage depends on the lender and the deal. Some remortgages cost very little, because the lender pays for the valuation and the legal work and there is no arrangement fee. Others can cost a couple of thousand pounds once every fee is added up.

The headline interest rate is only part of the picture. A deal with a low rate and a high fee can cost more over the whole deal than one with a slightly higher rate and no fee, so it helps to look at the total cost.

Remortgage costs at a glance

These are typical figures. Your own offer and mortgage paperwork will show the exact amounts.

Each remortgage fee explained

Arrangement or product fee

This is charged by the new lender for setting up the deal. It is usually the biggest single cost, and often around £1,000. You can often pay it upfront or add it to the mortgage, though adding it means you pay interest on it for as long as you have the loan.

Booking fee

Some lenders charge a separate booking or reservation fee, typically £99 to £250, to secure a rate when you apply. It is usually paid upfront and is often not refunded if the remortgage does not go ahead, so check whether it applies before you commit.

Valuation fee

Your new lender needs to confirm what your home is worth. This can cost up to a few hundred pounds, although many remortgage deals include a free valuation.

Legal fees

Moving your loan to a new lender needs legal work to register the new mortgage on your property. This usually costs around £300, and many lenders offer a free standard legal service when you remortgage with them.

Exit fee

Your current lender may charge a small fee to close your mortgage account, often between £50 and £65. It is sometimes called a deeds release or administration fee.

Deeds release fee

Some lenders charge a separate deeds release fee, usually between £50 and £300, to remove their mortgage from your property's title once it is paid off. Your current lender's tariff of charges will show whether this is included in the exit fee or charged on top.

Broker fee

Some mortgage brokers charge a fee for their help, and others are paid by the lender. Ask what you will pay, and when, before you agree to anything.

Early repayment charges

If you leave a fixed or discounted deal before it ends, your lender may charge an early repayment charge. It is usually a percentage of the amount you repay, and it can run into thousands of pounds on a large mortgage. It is often the most expensive cost of all, and the easiest to avoid.

For example, if you owe £150,000 and your early repayment charge is 3%, leaving the deal early would cost £4,500. Many deals reduce the charge each year, such as 5% in the first year, 4% in the second and so on, so the cost of leaving a few months before the end can be much lower than leaving in the first year.

Check your mortgage paperwork for the date your deal ends and the early repayment charge before you apply. In most cases it is cheaper to wait until the deal finishes, and you can usually secure a new rate several months ahead.

Our guide on how to remortgage explains when to start looking.

Remortgage legal and solicitor fees: do I need a solicitor?

If you move to a new lender, yes. Legal work is needed to register the new loan on your property, and it is usually done by a solicitor or licensed conveyancer. Many lenders pay for a standard remortgage legal service, so you may not pay anything yourself. If you choose your own solicitor, or your case is not straightforward, you may pay a fee.

A product transfer with your current lender usually needs no solicitor, which is one reason it is often cheaper and quicker.

Do you pay stamp duty when you remortgage?

No. Stamp duty, and its equivalents in Scotland and Wales, is a tax on buying property, so simply remortgaging a home you already own does not trigger it. It can apply if you add someone to the title deeds and they take on a share of the mortgage as part of a transfer of equity, so get advice if that is part of your plans.

How to keep the cost of remortgaging down

• Look for free extras. Free valuations and free legal work can save several hundred pounds.
• Compare the total cost. Add the fees to the interest over the length of the deal, not only the rate.
• Wait for your deal to end. This avoids an early repayment charge.
• Consider a product transfer. Staying with your lender can mean fewer fees and less paperwork.
• Think carefully about adding fees to the loan. It spreads the cost but increases the interest you pay.
• Ask a broker to compare the market. They can show you deals with and without fees side by side.

Is it still worth remortgaging once you add the fees?

Often yes, particularly if your deal has ended and you would otherwise move to a higher standard variable rate. A simple check is to divide your total fees by your monthly saving. The answer is roughly how many months you need to break even.

For example, if the fees come to £1,500 and the new deal saves you £150 a month, you would break even in about ten months. If the deal lasts two or five years, the rest is saving. Use our remortgage calculator to try this with your own figures.

Remortgage cost FAQs

How much does it cost to remortgage?

The cost varies by lender and deal. Typical costs include an arrangement fee of around £1,000, a valuation fee of up to about £400, legal fees of around £300 and an exit fee of £50 to £65 on your old mortgage. Many lenders offer free valuations and free legal work, and some deals have no arrangement fee, so the total can be much lower.

Are there any free remortgage deals?

Some remortgage deals come with free valuations and free standard legal work, and some have no arrangement fee. These deals sometimes have a slightly higher interest rate, so compare the total cost over the whole deal rather than the fees alone.

Do I need a solicitor to remortgage?

Yes, remortgaging to a new lender needs legal work to register the new loan on your property. Many lenders offer a free legal service on standard remortgages. A product transfer with your current lender usually needs no solicitor.

Can I add the remortgage fees to my mortgage?

Many lenders let you add the arrangement fee to the loan instead of paying it upfront. This spreads the cost, but you pay interest on it for the length of your mortgage, so it costs more in the long run.

Is it worth remortgaging if there are fees?

It can be, if the monthly saving over the length of the new deal is clearly bigger than the total fees. Our remortgage calculator can show you the saving after fees.