How much does it cost to remortgage?

The cost of remortgaging depends on your current deal, the new mortgage you choose and whether any fees or early repayment charges apply.

You may need to consider arrangement fees, valuation fees, legal costs, broker fees where applicable, exit charges and any early repayment charge from your current lender. If you are borrowing more, your monthly payments and total interest may also change.

The right question is not just “what rate can I get?” It is “what will remortgaging cost overall, and does switching still make sense after fees?”

Muttuo Mortgages can help you compare your current deal, lender options and suitable remortgage routes, so you can see the full cost before deciding what to do next.

Check the costs on both sides of the switch

Before you compare new mortgage deals, it helps to separate the costs linked to leaving your current lender from the costs linked to setting up a new deal.

Some remortgages have low upfront costs, especially if the new lender includes a valuation or legal package. Others may involve product fees, legal fees, exit fees or charges from your existing lender.

The main costs to check include:

• arrangement or product fees
• valuation fees
• legal fees
• early repayment charges
• exit or closure fees
• broker fees, where applicable
• interest charged if you add fees to your mortgage

Not every cost will apply to every remortgage. However, each one can affect whether switching is genuinely worthwhile.

The cheapest-looking mortgage is not always the cheapest overall. A lower rate with a large fee may cost more than a slightly higher rate with lower upfront costs.

Start with the cost of leaving your current deal

The first place to look is your existing mortgage. Before you compare new deals, check whether your current lender will charge you for leaving.

The biggest potential cost is usually an early repayment charge. This may apply if you leave your current fixed, discounted or tracker deal before the agreed period ends.

You may also have a smaller exit or closure fee when your current mortgage is repaid. This is separate from an early repayment charge and depends on your lender’s terms.

The key point is simple: before checking whether a new deal saves money, you need to know how much it costs to leave your current one.

Arrangement fees can change the true cost

Many mortgage deals come with an arrangement fee, sometimes called a product fee. This is charged by the lender for setting up the mortgage deal.

Some deals have no arrangement fee, while others have a larger fee in exchange for a lower interest rate. That can make comparisons harder because the deal with the lowest rate is not always the lowest-cost option.

You may be able to pay the fee upfront or add it to your mortgage. Adding it to the loan can reduce the upfront cost, but it also means you may pay interest on that fee over time.

That is why it helps to compare the total cost over the deal period, not just the monthly payment.

A valuation can affect your loan-to-value

When you remortgage, the lender may need to confirm the value of your property. This helps them assess your loan-to-value and decide which products you may qualify for.

Some remortgage deals include a valuation as part of the package. In other cases, a valuation fee may apply. The cost can depend on the lender, the property and the type of valuation required.

A valuation is not the same as a full property survey. It is mainly for the lender’s benefit, rather than a detailed condition report for you.

Your property value can still make a difference. If your home has increased in value or your mortgage balance has reduced, your loan-to-value may have improved. That could affect the remortgage deals available to you.

Legal work may be included in the deal

A remortgage usually involves legal work, especially if you are moving from one lender to another. The legal process deals with repaying your existing lender and registering the new mortgage.

Some lenders include a standard legal package as part of the remortgage deal. Others may offer cashback instead, allowing you to arrange your own solicitor.

An included legal package can reduce upfront costs, but it is still worth checking what is covered. More complex cases may involve extra legal work, especially if there are title issues, ownership changes or additional borrowing.

Before comparing deals, check whether legal work is included, charged separately or supported through cashback.

Include any broker fee in the full cost

Some mortgage brokers charge a fee for advice or arranging the mortgage. Others may not charge you directly.

Where a broker fee applies, it should be included in your total cost comparison alongside lender fees, legal costs and any early repayment charge.

The value of advice is not only about the fee. A broker can help compare your current deal, your lender’s options, product fees, early repayment charges and suitable remortgage routes across the market.

Muttuo Mortgages can help you compare remortgage options across over 100 lenders, so you can see whether switching, waiting or taking another route could make more sense.

The lowest rate may not be the cheapest deal

A common mistake is choosing a remortgage based only on the headline interest rate.

The rate matters, but it is only one part of the cost. Fees, cashback, incentives, legal costs, early repayment charges and the length of the deal can all change the outcome.

For example, a lower-rate mortgage with a large arrangement fee may be less suitable if your mortgage balance is small or if you only plan to keep the deal for a short time.

A slightly higher rate with lower fees may sometimes work out cheaper over the period you expect to hold the mortgage.

The best comparison is the total cost over the deal period, including monthly payments and upfront fees.

Adding fees to your mortgage can cost more over time

Adding fees to your mortgage can reduce the amount you need to pay upfront.

However, the fee becomes part of your mortgage balance. That means you may pay interest on it, and your total borrowing increases.

This does not automatically make adding fees the wrong decision. In some cases, preserving cash may be important. But it should be a conscious choice rather than something you do without checking the long-term cost.

Before adding fees to the loan, compare the monthly payment, total cost and how long you expect to keep the mortgage.

When remortgaging may cost less

Remortgaging may cost less than you expect if your current deal is ending, no early repayment charge applies and the new lender includes a valuation or legal package.

It may also be more cost-effective if switching helps you avoid your lender’s standard variable rate, especially if a suitable new deal is available.

In that situation, the main comparison is usually between staying where you are, switching to a new product with your current lender, or remortgaging to a new lender.

The aim is to understand which route gives you the best overall outcome after fees, not just which one has the lowest rate.

When remortgaging may cost more

Remortgaging may cost more if you are still tied into your current deal and an early repayment charge applies.

It may also be less attractive if the new deal has a high arrangement fee, your mortgage balance is small, or you plan to move home soon.

In some cases, a product transfer with your current lender may be simpler and lower-cost. In others, a full remortgage may still be worth considering because the wider options could outweigh the extra work or fees.

The right route depends on your current deal, property value, timing, borrowing needs and lender criteria.

Get your remortgage details ready

Before comparing deals, gather the information that affects your total cost.

You will usually need your current mortgage balance, interest rate, monthly payment, deal end date, standard variable rate and any early repayment charge. It also helps to know whether your current lender charges an exit fee.

You should also have a realistic estimate of your property value, as this can affect your loan-to-value. If your home has increased in value, or your mortgage balance has reduced, your remortgage options may have changed.

Once you have these details, it becomes much easier to compare your options properly.

How Muttuo Mortgages can help you compare the true cost

Remortgaging is not only about finding a new rate. It is about checking whether the full cost of switching makes sense.

Muttuo Mortgages can help you compare your current deal, your lender’s product transfer options and suitable remortgage deals from across the market. We can also help you weigh up arrangement fees, valuation fees, legal costs, early repayment charges and whether adding fees to the loan could affect your long-term cost.

With access to over 100 lenders, Muttuo can help you compare the routes available and decide which option is likely to fit your circumstances.

Frequently asked questions on remortgaging costs

How much does it cost to remortgage?

The cost depends on your current lender, new lender, product fees, legal costs and whether early repayment charges apply.

Some remortgages have low upfront costs, especially if the new lender offers free valuation or legal support. However, you may still need to consider arrangement fees, broker fees where applicable, exit fees and any early repayment charge from your current mortgage.

The biggest cost is often the early repayment charge if you leave your current deal before it ends. This is why it is important to check your existing mortgage terms before comparing new deals.

Do I have to pay an arrangement fee when I remortgage?

Not always. Some remortgage deals have arrangement fees, while others have no product fee.

Arrangement fees vary by lender and product. A deal with a fee may offer a lower interest rate, while a fee-free deal may have a slightly higher rate.

The best option depends on your mortgage balance, deal length and how long you expect to keep the mortgage. Rather than looking at the rate alone, compare the total cost over the deal period.

Are legal fees included when remortgaging?

Sometimes. Some lenders include basic legal work as part of the remortgage deal.

Many remortgage products include free legal support, but not all do. Some lenders may offer cashback instead, which can be used towards legal costs.

If your remortgage is more complex, extra legal costs may apply. For example, changes to ownership, title issues or additional borrowing can make the legal process less straightforward.

Will I need to pay for a valuation?

A valuation may be needed, but some lenders include it as part of the remortgage package.

The new lender will usually need to assess your property value before approving the remortgage. This helps them calculate your loan-to-value and decide which products may be available.

Some lenders offer a free valuation. Others may charge a fee, depending on the property and type of valuation required.

What is an early repayment charge?

An early repayment charge is a fee for leaving your current mortgage deal before the agreed period ends.

Early repayment charges are common on fixed, discounted and some tracker mortgage deals. They are often calculated as a percentage of your remaining mortgage balance.

If the charge is high, it may reduce or remove the benefit of switching early. Before remortgaging, compare the charge against the potential saving from the new deal.

Is it cheaper to remortgage or take a product transfer?

A product transfer may be simpler, but a remortgage lets you compare options beyond your current lender.

A product transfer means switching to a new deal with your existing lender. It can sometimes involve less paperwork and fewer upfront costs.

However, a full remortgage allows you to compare other lenders. This may be useful if your loan-to-value has improved, you want to borrow more, or your current lender’s options are not competitive.

The cheaper route depends on the rate, fees, criteria and your wider circumstances.

Should I add remortgage fees to my mortgage?

You may be able to add some fees to your mortgage, but doing so can increase the total cost.

Adding fees to your mortgage can reduce what you need to pay upfront. However, the fee becomes part of your mortgage balance, which means you may pay interest on it over time.

This can be useful if you want to preserve cash, but it should be compared carefully. Paying upfront may cost less overall if you can afford it.

Can remortgaging save me money after fees?

Yes, but only if the new deal is cheaper after all fees, charges and long-term costs are included.

Remortgaging may save money if it helps you move from a higher rate to a lower one or avoid your lender’s standard variable rate.

However, the saving should be compared against arrangement fees, legal costs, valuation fees, exit charges and any early repayment charge. A proper comparison looks at the total cost, not just the monthly payment.