Remortgage Fees

When considering a remortgage, it pays to bear in mind the costs of the actual process of remortgaging, so that you can weigh these into the balance when it comes to your decision making.

For instance, if you’re remortgaging to save money on lower monthly bills, but the fees payable eat up the savings that you’ve made, it’s probably not worth doing.

Current Mortgage

Your current mortgage may incur fees payable if you end the mortgage early. When you take out a remortgage, you are basically paying off the existing one with the funds from the new one, so if your current deal has terms charging a fee for early payment you need to take this into account.

These types of exit fee are of course less likely if your remortgage is with the same lender as your current mortgage. The fees may be waived since you’re continuing as a customer with them. However, if your new mortgage is with a different lender, you may well have to pay exit fees to get out of your current deal, so check your terms and conditions to find this out.

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New Mortgage

Securing your new mortgage as part of the remortgage process may also come at a cost. Similar fees may be payable to those that are incurred when you take out a new mortgage. These fees may therefore include arrangement fees, legal fees and valuation costs all charged by your new lender. These fees should help you choose a new lender as tey can be quite variable in their amounts.

These fees are known as set up costs, and can amount to considerable sums of money, so make sure you know about them before making any decisions.

When you’re shopping around for remortgage deals, you may see offers that claim to be ‘fee free’, however bear in mind that the terms of these deals may not be ideal in themselves, and make sure you thoroughly compare them to the alternative offers that are available.


To make sure you get the best remortgage deal you can, you should ideally arm yourself with as much information as possible. Use a remortgage calculator to work out the impact that any potential deal will have on your finances both now and later, and remember to account for any fees involved in the process.

As with any remortgage, you should make sure that a deal is worth making the change for, and only go ahead if it’s definitely in your interests to do so.