Costs

Remortgaging costs explained

Remortgaging can save thousands by moving you off an expensive rate, but only if the fees do not swallow the savings. This guide breaks down every cost involved, from arrangement fees to early repayment charges, so you can work out whether switching is worth it.

Last reviewed 1 June 2026

In short

Remortgaging means switching your mortgage to a new deal, either with your current lender (a product transfer) or a new one. The main costs are: an arrangement/product fee (often £0–£1,500), a valuation fee (frequently free on remortgage deals), legal/conveyancing fees (often free with 'fee-free' remortgage packages), a mortgage exit/deeds release fee from your old lender (around £50–£300), a broker fee if you use one, and, the big one, any early repayment charge (ERC) if you leave your current deal before it ends, typically 1–5% of the balance. Many remortgage products bundle free valuation and legal work, so the real decision usually comes down to whether the new rate saves more than the arrangement fee and any ERC combined.

Why remortgaging costs matter

Remortgaging is one of the most effective ways to cut your monthly outgoings, particularly when your fixed or discount deal ends and you would otherwise roll onto the lender's expensive standard variable rate. But every remortgage carries fees, and if you switch at the wrong time those fees can outweigh the saving.

The single biggest cost to watch is the early repayment charge. Leaving a fixed deal before it expires can cost thousands. Time your remortgage for when your current deal is ending, and the most expensive fee usually disappears.

Encouragingly, many remortgage deals are designed to be cheap to switch to, with free valuations and free basic legal work included. The key is to total up all the fees and compare them against the savings over the new deal period.

Typical remortgaging costs

What you might pay when switching your mortgage.

Cost	Typical amount	Often avoidable?
Arrangement / product fee	£0–£1,500	Yes, fee-free deals exist (often higher rate)
Valuation fee	£0–£300	Often free on remortgage products
Legal / conveyancing fee	£0–£500	Often free with remortgage packages
Exit / deeds release fee (old lender)	£50–£300	No, set by your current lender
Broker fee	£0–£500 (or commission-only)	Yes, many brokers are fee-free
Early repayment charge (ERC)	1–5% of balance	Yes, wait until your deal ends

Figures are indicative for 2026. Always check the specific product's fees and your current deal's ERC.

Costs that often catch people out

Beyond the headline rate, watch for:

Early repayment charges if you switch before your current deal ends.
An arrangement fee added to the loan (you then pay interest on it for years).
Exit or deeds release fees charged by your existing lender.
A higher rate on 'fee-free' deals that costs more overall than a deal with a fee.
Additional borrowing pushing you into a higher loan-to-value band with worse rates.

How to keep remortgaging costs down

1. Time it to your deal ending
Start the process around 3–6 months before your current deal expires to avoid early repayment charges and the SVR.
2. Compare fee vs rate
A low rate with a £999 fee may beat a fee-free deal, calculate the total cost over the deal period, not just the headline rate.
3. Look for free legals and valuation
Many remortgage products include these, removing two of the main switching costs.
4. Consider a product transfer
Staying with your lender is often quicker and cheaper, with minimal fees, but compare it against the whole market first.

Product transfer vs full remortgage

A product transfer (a new deal with your existing lender) usually skips valuation and legal work, making it fast and cheap. A full remortgage to a new lender involves more admin but can access better rates. Always compare both, loyalty does not always pay.

Is remortgaging worth the cost?

To decide, add up all the fees, arrangement fee, any ERC, exit fee and broker cost, and compare that total against the savings from the lower rate over the new deal period. If the savings clearly exceed the costs, remortgaging makes sense.

For most people, the maths works strongly in favour of switching when a deal ends, because the alternative (the lender's standard variable rate) is usually far more expensive. The cases where it does not pay are usually when an early repayment charge applies, when the remaining balance is small, or when you plan to move home soon. If in doubt, a fee-free broker can run the numbers across the whole market for you.

Common questions

How much does it cost to remortgage?

It varies widely. Many remortgage deals include free valuation and legal work, so the main costs are an arrangement fee (£0–£1,500), your old lender's exit fee (£50–£300), and any early repayment charge if you leave a deal early (1–5% of the balance). Total costs can be near zero on a well-chosen fee-free deal.

What is an early repayment charge?

It's a fee your current lender charges if you repay or leave your mortgage deal before it ends, typically 1–5% of the outstanding balance. It is usually the largest remortgaging cost, which is why most people remortgage as their existing deal expires to avoid it.

Are there free remortgage deals?

Many remortgage products include a free valuation and free basic legal work, and some have no arrangement fee. These 'fee-free' deals sometimes carry a slightly higher interest rate, so compare the total cost over the deal period rather than just the headline rate.

Is it cheaper to remortgage with my current lender?

Often, yes, in terms of fees and speed. A product transfer with your existing lender usually avoids valuation and legal costs. However, a new lender may offer a lower rate, so compare both options before deciding.

When should I start remortgaging?

Begin around three to six months before your current deal ends. Mortgage offers are typically valid for several months, so you can line up a new deal to start the moment your old one finishes, avoiding both early repayment charges and the lender's standard variable rate.

Do I need a solicitor to remortgage?

For a remortgage to a new lender, yes, some legal work is needed, but it is often included free in the deal. For a product transfer with your existing lender, legal work is usually minimal or not required at all.

Will remortgaging affect my credit score?

A full remortgage with a new lender involves a credit check, which leaves a footprint, but the impact is usually small and temporary. A product transfer with your existing lender may involve a lighter check. Avoid making many credit applications at once around the same time.

Is remortgaging worth it?

Usually yes when your deal is ending, because the alternative standard variable rate is typically much more expensive. Add up all the fees and any early repayment charge, then compare against the savings from the new rate. If the savings exceed the costs, remortgaging is worthwhile.

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