Remortgage Fees Explained – What You’ll Pay When Switching Your Mortgage

Thinking of moving your mortgage to a cheaper deal? Most people focus on the lower rate and forget the fees that come with the switch. Those extra costs can eat into the savings you expect, so it’s worth knowing exactly what you’ll be charged before you sign anything.

In the UK, remortgaging fees aren’t set by law – each lender has its own list. That means the total price can vary a lot, but the basic categories are the same. Below you’ll find the common charges, typical price ranges, and what you can do to keep the bill low.

Typical Fees You’ll Encounter

Arrangement fee – This is the lender’s charge for setting up the new deal. Some banks waive it if you meet a certain rate, but many still ask for between £0 and £500. It’s usually a flat fee, but a few lenders tie it to a percentage of the loan.

Early repayment charge (ERC) – If your current mortgage has a fixed or discounted period left, the lender may punish you for ending it early. The ERC is often calculated as 1% to 2% of the outstanding balance. For a £200,000 loan, that could be £2,000 to £4,000. Check your existing contract before you start the remortgage process.

Valuation fee – The new lender wants to know the current market value of your property. A standard valuation runs about £150 to £300, but a full survey can cost £500 or more. Some lenders include the valuation in the arrangement fee, so ask first.

Legal (conveyancing) fees – Even though you’re not changing ownership, a solicitor or licensed conveyancer still needs to handle the paperwork. Expect to pay between £500 and £1,000 for a straightforward remortgage. If you have a complex situation – like a shared ownership or a buy‑to‑let conversion – the cost can rise.

Booking or administration fee – A small charge for processing the application, usually £0 to £250. It’s easy to overlook because it’s listed in the fine print.

Broker fee – If you use an independent mortgage broker, they may charge a fixed fee (often £300‑£500) or a percentage of the loan. Some brokers work on commission from the lender, meaning no direct cost to you, but it’s worth confirming.

How to Reduce or Avoid Remortgage Costs

First, shop around. Use comparison websites and talk to at least two lenders. A slightly higher rate with a lower fee structure can beat a low rate riddled with charges.

Second, ask for a fee‑free deal. Many banks run promotions that waive the arrangement fee or even cover the valuation. The offer may require you to keep the mortgage for a set period, so read the conditions.

Third, negotiate the ERC. If you’re close to the end of a fixed term, some lenders will reduce or drop the charge to keep your business. It never hurts to ask.

Fourth, consider a broker who offers a no‑fee service. Some brokers include their fee in the lender’s margin, so you don’t pay anything extra. Just make sure the broker is reputable and transparent about how they’re paid.

Fifth, bundle services. If you already have a current account, credit card, or savings account with the new lender, they might throw in a free valuation or reduced legal fees as a loyalty perk.

Finally, factor in the total cost, not just the monthly payment. A lower rate can look great on paper, but a high fee package may mean you’ll never break even. Use a simple spreadsheet: add up the arrangement fee, valuation, legal costs, and any ERC, then compare that total to the interest you’ll save each year.Bottom line: remortgaging can save you money, but only if you control the fees. By knowing the typical charges, asking the right questions, and comparing the full cost, you can make a smart move that truly lowers your mortgage bill.