Remortgage costs range from nothing to around £2,500 depending on whether you stay with your existing lender, which deal you choose, and whether any early repayment charge applies. Here is every fee you might encounter and what it will actually cost you.
Remortgage costs typically run from £0 to around £2,500. A product transfer with your existing lender can cost nothing. Switching to a new lender involves an arrangement fee (£0 to £1,999), legal fees (usually covered by the lender) and a valuation (usually free). If you are leaving a fixed deal early, an early repayment charge of 1% to 5% of the balance is the biggest potential cost. Broker fees are separate.
The total cost of remortgaging depends on three things: whether you stay with your existing lender or switch, which product you choose, and whether you are leaving a current deal before it ends. The table below covers every fee you might encounter.
| Fee | Typical cost | Who pays it | Can it be avoided? |
|---|---|---|---|
| Arrangement / product fee | £0 to £1,999 | You, to the lender | Yes: choose a fee-free deal |
| Legal / solicitor fees | £0 to £500 | You (or lender covers it) | Usually: most lenders offer free legals |
| Valuation fee | £0 to £300 | You (or lender covers it) | Usually: most lenders offer free valuation |
| Broker fee | £0 to £500 typical | You, to the broker | Yes: use a lender direct (but lose market access) |
| Early repayment charge | 1% to 5% of balance | You, to the current lender | Only by waiting until your deal ends |
| Deeds release fee | £0 to £300 | You, to the current lender | No: charged by some lenders on exit |
| CHAPS transfer fee | £25 to £50 | You, to the lender | Rarely waived |
Woodhall Mortgages is a whole-of-market, FCA-authorised broker (FRN 762513) based in Halifax, West Yorkshire. Our broker fee is £299 payable on formal mortgage offer. We compare remortgage deals across the full market, including deals not available direct from lenders.
Not all of these will apply to your remortgage. Most people switching to a new lender on a standard deal pay an arrangement fee (if applicable) and nothing else, because the lender covers legal and valuation costs.
This is a fee charged by the lender for the mortgage product itself, not for processing the application. It typically ranges from £0 to £1,999, with £999 and £1,499 being common amounts. Most lenders offer the same interest rate in two versions: one with a fee attached and one without. The fee version usually carries a lower rate.
Whether paying the fee is worth it depends on your loan size. On a £300,000 mortgage a 0.1% rate reduction saves £25 per month, or £300 per year. A £999 fee pays for itself in just over 3 years on a 5-year fix. On a smaller mortgage the arithmetic works out differently. A broker can run the numbers for your specific loan.
When you switch to a new lender, a solicitor transfers the mortgage charge on your property from the old lender to the new one. This is called a transfer of equity and it requires legal work. Most remortgage deals include free legal work, either by using the lender's own conveyancer or by offering a cashback of around £250 to £500 toward your own solicitor.
If no free legals are included, remortgage solicitor fees typically run to £300 to £500. This is significantly less than the conveyancing cost on a house purchase because there is no property being bought or sold. On a product transfer with your existing lender, no solicitor is needed at all.
Most lenders carry out a valuation on remortgage to confirm the property value and calculate your loan-to-value ratio accurately. For standard residential properties most lenders offer a free automated valuation or drive-by valuation. A physical valuation from a surveyor is less common unless the property is unusual, high-value or in a location with limited comparables.
If a physical valuation is required and the lender does not cover it, the cost typically runs to £150 to £300. On a product transfer with your existing lender no valuation is needed.
This is the biggest potential remortgage cost and the one that catches people out. If you leave a fixed rate or tracker mortgage before the deal period ends, most lenders charge an early repayment charge of 1% to 5% of the outstanding balance. On a £200,000 balance a 3% ERC is £6,000.
ERCs typically reduce as you get closer to the end of the deal. A 5-year fix might charge 5% in year one, 4% in year two, 3% in year three and so on. Before remortgaging early, work out whether the rate saving over the remaining term exceeds the ERC. If it does, switching early may still save money overall. Use our remortgage calculator to model the saving.
Some lenders charge a fee to release the title deeds and remove their charge from the Land Registry when you leave. It is also called an exit fee or mortgage exit administration fee. Not all lenders charge it. Where it applies it typically runs to £50 to £300. It is separate from any early repayment charge and applies regardless of whether you are leaving at the end of a deal or partway through.
If you use a mortgage broker to arrange the remortgage, the broker charges a fee for their service. Woodhall Mortgages charges £299 payable on formal mortgage offer. Some brokers charge a percentage of the loan (typically 0.3% to 0.5%), others charge a flat fee, and some charge nothing because they receive commission from the lender. A broker provides access to the whole market, including deals not available direct, and handles the application, paperwork and lender chasing on your behalf.
The theoretical fee list above rarely all applies at once. Here is what remortgage costs actually look like in three common situations.
You switch to a new rate with your existing lender at the end of your current deal. No solicitor, no valuation, no ERC. Many product transfer deals have no arrangement fee. Total cost: £0 to £999 depending on whether you choose a fee-bearing product.
Your fixed rate ends and you switch to a new lender. The new lender covers legal and valuation costs as part of the deal. You pay an arrangement fee if the chosen product has one and a broker fee if you use a broker. Total cost: £299 to £2,298 (broker fee + arrangement fee if applicable).
You are 2 years into a 5-year fix and want to switch to a lower rate. Your lender charges a 3% ERC on a £200,000 balance: £6,000. Plus arrangement fee and broker fee if applicable. This only makes sense if the rate saving over the remaining 3 years exceeds £6,000 plus fees. Total cost: £6,000 to £8,000+ but potentially offset by a large rate saving.
The most expensive option is usually doing nothing. When a fixed rate ends without a new deal in place, the mortgage moves to the standard variable rate. SVRs typically sit 2 to 4 percentage points above new deal rates. On a £200,000 balance a 2% higher rate costs around £333 per month , or £4,000 per year. Every month on the SVR without acting costs more than most remortgage fees.
For most people coming off a fixed deal the answer is straightforwardly yes. The maths is simple.
Take the monthly saving from switching to a lower rate. Multiply it by the number of months in the new deal. Compare that to the total fees. If the saving is larger, remortgaging saves money. On most remortgages the saving runs into thousands of pounds over a 2 or 5 year deal. Fees rarely exceed £2,500. The net saving is almost always positive.
The calculation is less clear when an early repayment charge is involved. In that situation, the rate saving needs to exceed the ERC plus fees within the remaining term. Use our free remortgage calculator to model the net saving for your specific balance, rate and term. It shows the monthly saving, annual saving and total saving over the new deal period.
"Most remortgage fees pay for themselves within the first two months of a lower rate. The question is rarely whether to remortgage. It is which deal is best and when to lock it in."
Woodhall Mortgages compares remortgage deals across the whole market and calculates the net saving after all fees for your specific balance, rate and circumstances. Initial discussion free.
Get Remortgage AdviceWoodhall Mortgages compares remortgage deals across the whole market and calculates the net saving after all fees for your specific balance, rate and remaining term. We check your existing lender against the full market and advise on the best route.
Initial discussion free. A broker fee of £299 is payable if you choose to proceed following a formal mortgage offer. This fee is non-refundable once charged. We may also receive commission from the lender. Your home may be repossessed if you do not keep up repayments on your mortgage.
Get Remortgage AdviceWoodhall Mortgages is authorised and regulated by the Financial Conduct Authority (FRN 762513). As a whole-of-market mortgage broker, we consider mortgages from across the market, subject to lender criteria and product availability. This article is for general information only and does not constitute regulated mortgage advice. Fee ranges and scenarios are illustrative. Actual costs depend on your specific lender, product and circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage.
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