How Much Does It Cost to Remortgage?

There is no fixed remortgage cost that will accurately apply to every homeowner. In practice, how much your remortgage costs will depend on the terms of your existing mortgage, when you choose to switch and the new deal you take out.

Many lenders offer remortgage deals that include a free valuation, standard legal work or no product fee, which can significantly reduce your upfront costs. However, this will depend on the deal you choose, as other lenders may charge for these services alongside a product fee and, where applicable, an early repayment charge (ERC).

In this article, we explain exactly what remortgage fees you need to consider, where you may be able to save on costs and how to decide if switching a mortgage offers you the best value. Let’s begin.

What Remortgage Fees Could You Have to Pay?

The costs of remortgaging will largely depend on two things:

• The charges for leaving your existing mortgage
• The costs attached to setting up your new deal

While remortgaging can provide an opportunity to secure a lower interest rate, reduce your monthly repayments or find a deal that better suits your circumstances, it is important to know all the costs involved before making a final decision.

This is particularly important if you are planning to remortgage before your current deal ends, as this can often include additional charges, such as exit fees or early repayment charges (ERC) that could reduce or even outweigh the total savings you would make.

With that said, the fees you could potentially face will usually relate to the following:

• Arranging your new mortgage deal
• Valuing your property for the new lender
• Leaving your existing mortgage deal early
• Repaying and closing your existing mortgage
• Mortgage advice and arranging your application
• Legal work required to complete the remortgage

It is uncommon for every fee to apply to the same remortgage. Some lenders include a free basic valuation or standard legal work as part of their remortgage package, while certain products have no arrangement fee at all. Understanding exactly which costs apply to your circumstances is much more useful than simply adding together every possible remortgage fee.

To help you understand what could apply to your remortgage, let’s look at each remortgage fee, when it applies and how much it could add to your overall costs.

Arrangement Fee

An arrangement fee, also commonly known as a product fee, is a charge that some lenders apply for taking out a particular mortgage deal. Rather than being a general fee for processing your remortgage, it is usually attached to the mortgage product itself and will vary depending on the lender, interest rate and deal you choose.

Not all lenders charge an arrangement fee, but for those that do, this would usually make up the largest part of the total remortgage costs. Arrangement fees can range from £1,000 – £2,000. However, selecting a fee-free mortgage product can remove this cost entirely.

There are two methods of paying this fee; you can usually pay upfront or add it to your new mortgage. In our experience, most homeowners choose to add this fee to the loan in order to save finding the money upfront. However, it’s important to note that should you add any fee to your total mortgage loan, you will be paying interest on the fee while it remains part of your mortgage balance.

For example, adding a £999 product fee to a £200,000 balance at 4.25% over 25 years adds £4.25/month to repayments. If left unpaid over the full 25-year term, that £999 fee ultimately costs £1,635 in total.

Booking Fee

A booking fee is an upfront charge that some lenders may apply when you secure a particular mortgage deal. This is separate from the arrangement fee and is typically paid when you submit your application.

Booking fees are lender-specific and will not apply to every remortgage. Where a lender does charge one, you could typically expect to pay around £100 – £200, although the exact amount will depend on the mortgage product you choose.

Unlike an arrangement fee, a booking fee cannot usually be added to your mortgage and is often non-refundable if your remortgage does not go ahead.

As such, before paying a booking fee, it’s important that you check your chosen lender’s terms to clarify when the fee becomes payable and whether or not you would be entitled to a refund in the event that your application falls through.

Valuation Fee

When you remortgage to a new lender, they will usually need to complete a valuation of your property. This allows the lender to confirm its current market value and calculate the loan-to-value (LTV) of your new mortgage.

Many lenders include a free basic valuation as part of their remortgage deals. As such, in most cases you would not have to pay a valuation fee.

Where a valuation fee does apply, it could range from around £150 – £1,500, depending on the value of your property and the type of valuation required. Higher costs would generally be associated with more valuable properties or a more detailed assessment rather than a standard lender valuation.

Early Repayment Charge

An early repayment charge (ERC) is a fee your existing lender may charge if you repay your mortgage before your current deal ends.

If you remortgage when your fixed-rate deal has finished, an ERC would not usually apply. However, if you choose to remortgage while you are still within a fixed-rate period, you may have to pay an ERC to leave the deal early.

Unlike most other remortgaging costs, an ERC will normally be calculated as a percentage of the outstanding mortgage balance. The percentage can vary between lenders and products and may reduce as you get closer to the end of your deal.

For example, if you have £200,000 remaining on your mortgage and your lender applies a 3% ERC, leaving the deal early would cost £6,000:

• £200,000 x 3% = £6,000 ERC

An ERC can therefore be considerably more expensive than the other fees associated with remortgaging. Before remortgaging early, compare the charge against the potential savings from your new deal to understand whether paying it would actually leave you better off.

Exit Fee

An exit fee is an administration charge that your existing lender may apply when your mortgage is repaid and closed. Exit fees are lender-specific and will not apply to every remortgage.

Costs can range between £50 – £200, but it’s important to check the terms of your existing mortgage to confirm the exact amount and whether you will need to pay one.

Exit fees are not linked to leaving your deal early and could still apply when you remortgage at the end of a fixed-rate period.

Broker Fee

The cost of using a mortgage broker will depend on the broker you choose and how they charge for their service. Some brokers charge a fixed fee, while others may charge a percentage of your mortgage amount or use a combination of different fees.

As a result, broker fees can vary considerably and should be factored into your overall remortgage costs before you choose who to use. It is worth checking how much you will pay, when the fee becomes due and whether there are any additional charges for arranging your mortgage.

However, not every mortgage broker charges customers a fee. At Boon Brokers, our mortgage advice and arrangement service is completely fee-free, meaning you will pay £0 in broker fees when we arrange your remortgage.

Are There Legal Costs When Remortgaging?

When you remortgage to a new lender, legal work is required to repay your existing mortgage and register the new lender’s mortgage against your property. As part of a standard remortgage, this can include:

• Obtaining a redemption statement from your existing lender
• Completing the required property searches and Land Registry checks
• Checking the title of the property
• Repaying your existing mortgage on completion
• Registering the new lender’s charge against your property

The total cost of this legal work will ultimately depend on the lender and remortgage deal you choose. Many lenders include a standard legal package that covers these costs, while others may offer cashback towards your legal fees or require you to arrange and pay for your own solicitor.

It’s important to check what legal support is included with your chosen remortgage deal. Some lenders provide a standard legal package, while others may offer around £200 – £500 cashback to help towards the cost of arranging your own legal work.

In cases where your remortgage involves additional work, such as changing the names on the property title at the same time, you may still have extra legal fees to factor into your overall remortgaging costs.

Can You Remortgage With No Fees?

Many of the usual costs of remortgaging are not compulsory charges. In fact, whether they apply will often depend on your existing mortgage, the new product you choose and which services your lender includes.

To help demonstrate how you can remortgage without paying a fee, the table below shows a practical breakdown of all the potential costs and how they can be avoided or included as part of your remortgage:

All costs shown are illustrative and actual fees will vary depending on your lender, mortgage product, property and circumstances.

It is unlikely that you would have to pay every charge listed above when remortgaging. Typical remortgage costs when switching lenders can be around £1,000 – £3,000 before any ERC, while lender incentives such as a free basic valuation and standard legal work can reduce this considerably.

Additionally, Boon Brokers’ 2026 Mortgage Broker Fees Study, found that borrowers who paid for mortgage advice were charged an average of £623 for a remortgage. Using a fee-free mortgage broker can remove this cost entirely.

Crucially, the table shows that it is entirely possible to remortgage without paying any upfront fees. If your existing deal has ended and your new mortgage includes the right fee-free features and lender incentives, your total upfront cost to remortgage could be £0.

It is also worth noting that a fee-free remortgage will not guarantee that you’ve found the most suitable or cheapest deal. For example, a deal with a product fee could offer a lower interest rate that saves you more over the initial term than you paid to secure it.

For this reason, contacting a whole-of-market mortgage broker can help you compare the total costs and savings across different lenders to find you the deal that works for your circumstances.

Is It Cheaper to Stay With Your Current Lender?

Switching to another deal with your existing lender is known as a product transfer. As you are staying with the same lender, the process is generally considered to be much simpler and can involve fewer costs.

Why Staying With Your Current Lender Can Be Cheaper

A product transfer can reduce your upfront costs because you may benefit from:

No legal fees: A solicitor or conveyancer will not usually be required
No valuation fee: Your lender will not usually require a new property valuation
Fewer lender fees: Your lender may offer a product with no arrangement or booking fee

Why Switching Lenders Could Save You More

Despite the additional cost of remortgaging with a different lender, switching could provide:

• A lower interest rate: Another lender may offer a more competitive mortgage rate
• More mortgage options: You can compare your current lender against products available across the wider market
• Lender incentives: Some remortgage deals include free valuations, standard legal work or cashback to reduce switching costs

Staying with your current lender may be cheaper upfront, but it will not necessarily save you the most money overall. Comparing both options allows you to consider the fees alongside the potential savings before deciding whether a product transfer or remortgage offers better value.

How Can You Compare the Overall Cost of Different Deals?

The cheapest remortgage will not necessarily have the lowest interest rate or the fewest fees. Instead, you need to consider how much each mortgage is likely to cost you over the period you expect to keep that deal.

This means comparing factors such as:

• The interest rate
• Your monthly mortgage repayments
• Product and arrangement fees
• Any valuation or legal costs
• Cashback or other lender incentives
• Any ERC or exit fee for leaving your existing mortgage

Looking at these costs together allows you to establish exactly whether the savings offered by a particular mortgage are enough to outweigh the fees to remortgage.

For example, let’s compare three two-year fixed-rate remortgage deals for someone with a £200,000 mortgage balance and 25 years remaining.

Figures are illustrative and do not represent currently available mortgage products. Calculations assume a £200,000 capital repayment mortgage with 25 years remaining and exclude any costs not shown.

This comparison shows how the lowest interest rate will not always result in the lowest overall cost. By considering the product fee alongside the monthly repayments, you can get a clearer picture of which remortgage deal offers better value over the two-year period.

How Can a Whole-of-Market Mortgage Broker Help?

The process of comparing each and every remortgage deal can take a lot of time and becomes much more difficult when you move from three example products to mortgages available across the wider market.

A whole-of-market mortgage broker can compare products from a wide range of lenders and calculate how the rates, fees and incentives affect the overall cost. Crucially, they can also consider whether you actually meet each lender’s eligibility and affordability requirements rather than simply identifying the cheapest advertised rate.

At Boon Brokers, our expert mortgage advisers can help you compare thousands of mortgage products from more than 90 lenders. Rather than looking at the interest rate alone, we will assess the fees, monthly repayments and potential savings to identify exactly which options offer you the best value.

Your dedicated mortgage broker will guide you through the remortgage process, from recommending a suitable deal and submitting your application to communicating with the lender and overseeing your case through to completion.

Our expert mortgage advice is completely fee-free, meaning you will pay £0 in broker fees for our advice or for arranging your remortgage, helping you keep the cost of remortgaging as low as possible.