Remortgaging fees: How Much Will It Cost

Remortgaging fees

Mortgage refinancing can be a great way to secure a lower mortgage rate, access cash for home improvements or consolidate debt. However, it’s important to understand the fees involved in the process. This article will break down the most common mortgage refinancing fees and how much they’ll cost you.

What Does Remortgaging Mean?

Remortgaging is the process of taking out a new mortgage on a property you already own. This might be to benefit from better interest rates or release equity from your property. Homeowners have plenty of reasons to remortgage their homes, despite the fees associated with the process.

Why Might you Remortgage?

There are several reasons why homeowners choose to remortgage:

  • To get a better mortgage rate:

Mortgage rates change all the time,  and by remortgaging you could secure a lower rate and save money on your monthly repayments. Just like switching your mobile phone contract or energy supplier for a better deal, changing your mortgage provider after your current deal ends can provide savings.

  • To release equity:

If your property has increased in value, you may be able to remortgage and release some of the equity you’ve built up. This could be used for home improvements, consolidating debt or anything else you need the money for.

  • To switch mortgage types:

If you have an interest-only mortgage, you may need to remortgage to a repayment mortgage before the end of your term. This is because, with an interest-only mortgage, you only pay off the interest on your loan each month. At the end of the mortgage term, you would still owe the full amount of the loan. A repayment mortgage would see you pay off both the interest and part of the capital each month so that the mortgage is repaid in full by the end of the term.

What are Mortgage Refinancing Fees?

The main fees associated with remortgaging are:

  • Arrangement/application fee: 

This is a charge from the mortgage lender for setting up your mortgage. It’s usually a percentage of the mortgage amount, so the larger the mortgage, the higher the fee. For example, a £200,000 mortgage at 1% would incur an arrangement fee of £2,000.

  • Valuation fee:

The mortgage lender will want to value your property to make sure it’s worth at least the amount you’re borrowing. This fee is usually between £100 and £1,500, depending on the value of your property.

  • Early repayment charges:

If you remortgage before the end of your mortgage term, you may have to pay early repayment charges to your current mortgage lender. These can be a percentage of your mortgage balance or a fixed amount and can add up to several thousand pounds.

  • Legal fees:

You’ll need to instruct a solicitor or conveyancer to carry out the legal work involved in remortgaging. Their fees will vary depending on the complexity of your mortgage, but you can expect to pay between £500 and £1,500.

  • Stamp duty:

If you’re remortgaging a property in England or Northern Ireland, you may have to pay stamp duty. This tax is calculated as a percentage of your mortgage loan and is charged on properties worth more than £125,000.

How Much Will it Cost to Remortgage?

Remortgaging fees: How Much Will It Cos

The total cost of remortgaging will depend on a number of factors, including the mortgage amount, mortgage term and mortgage type. However, as a general guide, you can expect to pay between 1% and 5% of your mortgage loan in fees. So, on a £200,000 mortgage, you could be looking at fees of £2,000 to £10,000.

To get an accurate idea of how much it will cost you to remortgage, speak to a mortgage advisor. They’ll be able to give you a personalised quote based on your individual circumstances.

Ready to compare mortgage rates? Contact Eden Hawk today for expert mortgage advice. They search the market for premium mortgage deals to offer you the best rates.

Is Remortgaging Worth it?

The cost of remortgaging can seem high, but it’s important to remember that you could save money in the long run. By securing a lower mortgage rate, you could reduce your monthly repayments and save money over the term of your mortgage.

You should also consider the other benefits of remortgaging, such as releasing equity or switching to a different mortgage type. These could help you save money or make your financial situation more manageable.

Before committing to a mortgage, ensure you compare the costs of switching providers. Understanding whether the savings in monthly mortgage payments will cover the upfront costs of remortgaging will help you make up your mind.


Remortgaging your property can be a great way to save money on your mortgage repayments, release equity or switch mortgage types. However, there are a number of fees associated with the process.

The main fees are arrangement/application fee, valuation fee, early repayment charges, legal fees and stamp duty. The total cost of remortgaging will depend on your mortgage amount, mortgage term and mortgage type, but you can expect to pay between 1% and 5% of your mortgage loan in fees.

For the most affordable remortgaging experience, speak to one of Eden Hawk’s experienced mortgage advisors. Their free introductory consultation will give you an idea of how much you should expect to remortgage your home.