The Costs Involved When Remortgaging

Buying a home can be costly but what about remortgaging? This can very based on several factors so we will break each cost down for you so you know what to expect when the time comes to remortgage. It is important to know that the remortgage costs are different if you are remortgaging to a different lender compared to if you are sticking with your current lender and just obtaining a new rate with them. So we have detailed both options under each possible cost to make it clear.

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Valuation Fee

Some lenders will provide you a free valuation however others may change up to around £400. We can narrow down the lenders that will accept you first and then if a free valuation is important to you, we can find the lender who offers one to reduce this extra cost when remortgaging to another lender. If you are sticking with the same lender, just obtaining a new rate (Product Transfer), a valuation will not be done. They will simply just switch you to the new rate.

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Early Repayment Charges

These are applicable if you are remortgaging to another lender before your current deal ends. You can ring your lender and ask them to detail exactly how much you will be charged as this can range significantly depending on how long you have left on your deal and how much the early repayment percentage is. If you are doing a product transfer, then you can ask the lender to switch you to your new deal once your early repayment charges end, so you will not incur a charge. However if for example the new rate you will be moving to is lower than your current one and you want to switch asap, then you may have these charges to pay.

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Just4Mortgages Broker Fee

Our broker fee at Just4Mortgages as standard is £494 for residential remortgages. However for product transfers in most cases we can do these for you completely free of charge!

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Product Fees

A product fee also known as arrangement fee or application fee is charged by the lender. Some lenders deals will not have a product fee however some will add this one and can range from £1000 to around £2000. You can look at adding this fee to your mortgage if you do not want to pay this fee upfront. For product transfers, in most cases you can find fee free products but some will also have this fee attached so it is important to look at all the options available to you.

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Solicitors Fees

When remortgaging some lenders will offer you what is called 'Free Legals', they are free solicitors instructed to act for the lender however they do have small charges for more complicated remortgages such as when they need to repay any debts or transferring someone off the mortgage. You can also use your own solicitors (some lenders will give you cashback if you pick this option to help towards to cost of solicitors). The solicitors fee can vary depending on if you are also consolidating debt whilst remortgaging, transferring someone off or on etc. It is important to know free legals do not work for you, they work for the lender but a solicitor instructed by you will work for you! Product Transfers do not involve a solicitor