Remortgage Costs and Fees UK: Everything You Need to Know | Winston Solicitors Skip to main content

Remortgage Costs and Fees UK: Everything You Need to Know

The below table shows an estimate of the possible remortgage costs and fees applicable on a remortgage matter:

Cost Category Typical Cost Range Notes
Early Repayment Charges (ERC) Varies (percentage of loan) Applicable if remortgaging before the current term ends; can be a substantial cost.
Deed Release Fees (Exit Fees) £50 - £300 Charged by the current lender for closing the existing mortgage.
Arrangement Fees £0 - £2,000+ Charged by the lender for arranging the mortgage; can be a significant amount.
Valuation Fees £150 - £1,500 Varies based on property value; some lenders may waive this fee.
Broker Fees Varies If using a mortgage broker; some may be commission-based and paid by the lender.
Booking Fees £100 - £200 For securing a specific mortgage deal; not always applicable.
Legal Fees £300 - £1,000 Necessary for handling legal aspects of the remortgage; costs depend on complexity.
Higher Landing Charges Varies Applicable for mortgages with a high loan-to-value ratio.
Insurance Varies Costs for updating or taking out new home insurance policies.

These costs can vary based on individual circumstances, the lender, and the specific terms of the remortgage deal. Some fees may be negotiable or waived, so it's beneficial to shop around or consult with a mortgage advisor for the best terms.

Remortgage costs when leaving your current deal

When exiting your current mortgage deal, two of the main costs you may encounter are the Early Repayment Charge (ERC) and the Deed Release Fee (also known as an Exit Fee).

Generally, the longer you have left on your fixed term contract the higher your fee will be. However, the total amount that you will have to pay is dependent on various factors.

These include the type of mortgage you have and how much you have left to pay.

Here's a breakdown of what each of these fees entails:

1. Early Repayment Charge (ERC)

This is a fee that your current lender may charge if you repay your mortgage early, typically during a fixed-rate, tracker, or discount mortgage deal period.

The ERC is usually a percentage of the outstanding mortgage amount. The percentage can vary depending on the terms of your original mortgage agreement and often decreases over time. Most lenders will charge between 1 and 5%.

The charge compensates the lender for the interest they lose because of the early repayment.

To avoid this fee, you can wait  until your current deal's initial period is over, or you can check if your mortgage deal allows a certain amount of overpayment without penalty.

2. Deed Release Fee

This is a fee charged by your lender for processing the legal work involved in closing your current mortgage account. Unlike the ERC, the deed release fee is typically a fixed amount, stipulated in your original mortgage terms.

The cost can vary between lenders but is usually in the region of £50 to £300. It covers the administrative costs of removing the lender's interest from the property deed, effectively releasing the deed back to you or your new lender.

Remortgage costs for getting your new deal

When securing a new mortgage deal, there are several costs you might encounter. Here’s an explanation of some common fees:

1. Arrangement Fee

This is a fee charged by the new lender for setting up the mortgage. It's sometimes referred to as a product fee or completion fee. It can vary significantly.

This fee can often be added to the mortgage amount, but doing so means you'll pay interest on it over the term of the mortgage.

2. Valuation Fee

This fee covers the cost of the lender assessing the value of the property you wish to mortgage. Depending on the property's value and the type of valuation. Some lenders might offer free valuations as part of their mortgage deal.

3. Broker Fee

If you use a mortgage broker, they might charge a fee for their service in finding and arranging your mortgage. Broker fees can vary widely. Some brokers are paid via commission from the lender and may not charge you directly. A good broker can often save you money in the long term by finding the best deal for your circumstances.

4. Booking Fee

Also known as a reservation fee, this is charged on some mortgage products to secure a particular deal and the cost can vary. This fee is usually non-refundable, even if the mortgage doesn’t go ahead.
 

The legal fee for a remortgage in the UK. This fee covers the cost of a solicitor or conveyancer to handle the legal aspects of the remortgage process.

The exact amount can vary depending on factors such as the complexity of the remortgage, the property's location, and the solicitor's rates.

Some lenders offer remortgage deals that include free legal work, which can be a cost-effective option. However, it's important to compare the overall package as deals with free legal fees might have higher interest rates or other costs.

When budgeting for a remortgage, it's advisable to get quotes from several solicitors or conveyancers to find the best deal for your specific circumstances.

Is a solicitor required for a remortgage?

Yes, a solicitor or a licensed conveyancer is typically required for a remortgage in the UK. Their role is to handle the legal aspects of the remortgage process, which includes:

  • Legal Checks: They conduct necessary legal checks on the property.
  • Title Deeds: They ensure the title deeds of your property are in order and manage the transfer of these deeds from your old mortgage lender to the new one.
  • Existing Mortgage: They liaise with your current mortgage lender to obtain the redemption statement (the amount needed to pay off your current mortgage).
  • New Mortgage: They work with your new mortgage lender to ensure all their legal requirements are met.
  • Funds Transfer: They oversee the transfer of funds from the new mortgage to pay off the existing mortgage.
  • Updating Records: They ensure that the Land Registry records are updated to reflect the new mortgage lender.

Some lenders offer remortgage deals with free legal work, where they appoint a solicitor or conveyancer to handle the process. While this can be cost-effective, it's important to ensure that the appointed professional is thorough and communicative to avoid any potential issues or delays. If you prefer, you can choose your own solicitor or conveyancer, but this will typically be at your own expense.

Client feedback

I would definitely highly recommend the efficiency & good communication thry have & have had several properties successfully completed with
Mr H
Excellent local solicitors would recommend. You can call in the office car parking available and receptionists very helpful if you need help. Dealt with them before, excellent.
Ian
Winston Solicitors was recommended to me, as this was my first time buying a house and didn’t know what to expect. They made the process very easy and I did not have to worry about any of the process as I got to track it every step of the way. Samantha also kept me updated and any queries were replied to promptly. I will definitely be using again in the future and recommend everyone I know.
Mr Michel
I can’t speak highly enough of Sidraa at Winston Solicitors for her exceptional support throughout my house purchase. From start to finish, she has been absolutely brilliant. Her prompt responses, attention to detail, and professionalism made a stressful process feel manageable and smooth. This is actually the second time I’ve used Winston Solicitors, and once again, they have been great. Consistent, reliable, and professional and Sidraa in particular truly went above and beyond. She was always kind, polite, and incredibly approachable, nothing ever felt like too much trouble. Even when dealing with a particularly difficult chain and the added pressure of a new stamp duty deadline, she worked tirelessly to get everything done on time. She responded to queries even out of hours, always called back when she said she would, and genuinely made me feel like a priority. What really stood out to me was her dedication — despite having preplanned annual leave for Eid, she still tried to keep things moving, which shows how committed she is to her clients. Her communication was clear and consistent, and she made a complex process feel a lot less daunting. I felt fully supported and in safe hands throughout. If you're looking for a solicitor who is professional, caring, and truly exceptional at what she does, Sidraa at Winston Solicitors is the one to go to. I’m incredibly grateful for everything she did and wouldn’t hesitate to work with her again or recommend her to others. - April 2025
I Younas, Leeds
I would really like to thank both Amr and his assistant Joe. Throughout the whole process they kept me informed, nothing was ever too much. I am a first time buyer, this was a very stressful time but both members of staff made me feel at ease that it would get sorted. Thank you so much both!
Y Hinton, Leeds
Leasa and Julie were fantastic at helping us buy and sell our house. They were punctual, and kept us up to date with what was going on. Their online platform was clear to follow. Leasa's email response time was rapid, this was incredibly valuable. - March 2025
J Salthouse, Leeds
Superb service from a knowledgeable and professional team.The sale of my property was as far from straight forward as you could get, yet they handled everything perfectly. This made the process less stressful as i had the confidence in them to get it sorted!
Amy
2nd time using Winstons. 1st time was for a purchase and 2nd time was for a Sale. Sidra and Tom kept me updated at each stage of the process. We're very prompt in their responses and completed both times in a timely manner. Would highly recommend for conveyancing services
Farhana
Contact Amr