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Remortgaging can involve several possible costs: a valuation fee, a product or arrangement fee, legal fees, and sometimes a broker fee, plus an early repayment charge if you leave your current deal before it ends. Not every cost applies to every remortgage, and lenders often bundle some of these together or waive them as part of a deal. Checking exactly what is included before you commit is the best way to understand the full cost.
What are the typical costs of remortgaging?
| Cost | What it is | How common is it? |
|---|---|---|
| Valuation fee | Assessing the value of your home | Often included free, or waived, on many remortgage deals |
| Product or arrangement fee | A fee for the mortgage deal itself, sometimes addable to the loan | Common on many fixed and tracker deals |
| Legal fees | Handling the transfer of your mortgage and any title checks | Often covered by a free legal package on straightforward remortgages |
| Broker or adviser fee | A fee for arranging the mortgage through an adviser | Varies; some advisers charge none |
| Early repayment charge (ERC) | Charged for leaving your current deal before it ends | Only applies if you leave early and your mortgage has one |
| Exit or deeds release fee | An administration fee some lenders charge when a mortgage ends | Common but usually a smaller charge |
We do not quote specific fee amounts here, because they vary by lender, product and your own circumstances. Ask your lender or adviser for a full breakdown before agreeing to any deal.
Valuation costs
Lenders need to know your home is worth what you say it is before lending against it. Many now use a desktop valuation, based on data about comparable properties, which is often provided free as part of a standard remortgage. A physical survey, if the lender requires one, is more likely to carry a fee. Our guide on whether you need a valuation to remortgage explains this in more depth.
Product and arrangement fees
Many mortgage deals come with a product or arrangement fee, which some lenders let you add to the loan rather than pay upfront. Adding it to the loan means you pay interest on it over the term, so it is worth comparing the overall cost, not just the headline fee, when comparing deals. Deals with no fee sometimes carry a different rate instead, so the cheapest headline fee is not always the cheapest overall option.
Legal fees
Remortgaging usually involves some legal work, checking the title of your property and handling the switch from your old lender to your new one. Many lenders offer a free legal package for straightforward remortgages, using a solicitor from their own panel. If your situation is more complex, for example if you are also transferring ownership, adding a shared ownership share, or dealing with a leasehold with a short lease remaining, additional legal costs may apply. Our guide on whether you need a solicitor to remortgage covers this further.
Broker or adviser fees
If you use a mortgage adviser, some charge a fee for their service and some are paid by the lender instead, known as commission. It is worth asking upfront whether a fee applies, what it covers and when it is payable. Specialist advisers experienced with adverse credit can sometimes be worth the cost if they widen the lenders willing to consider your application, though this is a decision only you can make based on your own circumstances.
Early repayment charges
If you leave your current mortgage deal before it ends, typically during a fixed rate period, your lender may charge an early repayment charge (ERC). Not every mortgage has one, and where they exist they usually reduce closer to the end of the deal. Our guide on remortgaging early explains when this is likely to apply.
Fee-free versus fee-paying deals
Some mortgage deals are advertised as fee-free, meaning there is no product or arrangement fee, while others carry a fee but may offer a lower rate in exchange. Neither option is automatically cheaper, since the overall cost depends on the rate, the fee and how long you plan to keep the mortgage. Generally, a fee-free deal can work out better for a smaller mortgage balance, while a fee-paying deal with a lower rate can sometimes work out better on a larger balance, though this depends entirely on the specific numbers involved. Comparing the total cost over the deal period, rather than the fee or rate alone, gives a clearer picture.
What changes if you have adverse credit?
Adverse credit does not usually change which of the above costs apply, but it can affect the overall cost of borrowing. Rates for adverse credit are often higher than high-street rates, reflecting the lender’s view of the risk involved, and this is separate from the fees listed above. Some specialist lenders who consider CCJs, defaults, mortgage arrears or other adverse credit may have their own fee structures, which is another reason to compare the full cost of a deal, not just the fee or the rate on its own.
If borrowing more to consolidate other debts is part of your plan, remember that those debts become secured on your home and a longer term can mean paying more in total, so it is worth reading our guide on debt consolidation remortgages before deciding. Our bad credit remortgage calculator can help you get a rough idea of your own numbers, and if you are worried about affordability, free and impartial help is available from MoneyHelper, StepChange and National Debtline.
Frequently asked questions
Do I have to pay a valuation fee to remortgage?
Not always. Many lenders now use a free desktop valuation for straightforward remortgages, based on comparable sales data rather than a physical visit. A physical survey, if needed, is more likely to involve a fee. It is worth asking your lender or adviser what type of valuation applies to your application.
Is legal work free when you remortgage?
It often is for a straightforward remortgage, where lenders commonly offer a free legal package using their own panel solicitor. If your situation is more complex, for example a transfer of equity or a leasehold property, additional legal work may cost more. Check what is included before you decide.
Will I always pay a broker fee?
No. Some advisers do not charge a separate fee and are paid by the lender instead, while others charge a fee for their service. It is worth asking upfront whether an adviser charges a fee and what it covers before you go ahead.
Does adverse credit make remortgaging more expensive?
It can. Rates for adverse credit are often higher than high-street rates, and some specialist lenders or products aimed at adverse credit may carry different fees. We cannot quote rates or fees here, so always ask a lender or adviser for the exact costs of any specific deal before deciding.