If you’re struggling with your mortgage payments or simply looking for a better deal, remortgage can seem like an attractive option.
But before making a decision, it’s crucial to understand the many remortgage costs involved. From remortgage legal fees to remortgage charges, the process can be longer and more expensive than many homeowners expect.
In this guide, we’ll break down all the key remortgage costs and explore an alternative solution for those who may not be able to afford their mortgage anymore: selling your home for cash.
What is Remortgaging?
Remortgaging involves switching your existing mortgage to a new lender or renegotiating a better deal with your current provider. Homeowners typically do this to reduce monthly repayments, release equity, or consolidate debt.
While remortgaging can be a good financial move for some, the costs associated with the process can be significant. Understanding these expenses upfront can help you decide whether remortgaging is the right option for you.
How Much Does It Cost to Remortgage a House in the UK?
The total cost of remortgaging varies based on a variety of factors such as your lender, the size of your mortgage, and the specific deal you choose. Here are the main remortgage costs you need to consider:
1. Arrangement Fees
Most mortgage lenders charge an arrangement fee when you take out a new mortgage. This can range from £0 to £2,000, depending on the lender and mortgage product.
- Some lenders allow you to add this fee to your mortgage balance, but doing so means you’ll pay interest on it over time.
- Look for mortgages with low or no arrangement fees to minimise costs.
2. Remortgage Legal Fees
You’ll need a solicitor or conveyancer to handle the legal side of your remortgage. These fees typically range between £300 and £1,500.
- Some lenders offer free legal services as part of their remortgage deals.
- If you’re switching lenders, legal fees tend to be higher than if you stay with the same provider.
3. Remortgage Valuation Fees
A lender will usually require a valuation of your property before approving a new mortgage.
- Standard valuation fees typically cost between £150 and £1,500, depending on the value of your home.
- Some lenders include a free valuation as part of their remortgage package.
4. Early Repayment Charges (ERCs)
If you’re still within your fixed or discounted rate period, your current lender may charge an early repayment charge (ERC) for leaving your mortgage early.
- ERCs can be between 1% and 5% of your remaining mortgage balance.
- On a £200,000 mortgage, a 3% ERC would cost £6,000.
5. Broker Fees
If you use a mortgage broker to find the best remortgage deal, they may charge a fee.
- Broker fees range from £0 to £1,000.
- Some brokers work on commission from lenders, meaning they won’t charge you directly.
6. Exit Fees
Some lenders charge an exit fee (also known as a mortgage closure fee) when you repay your current mortgage in full.
- These fees usually range between £50 and £300.
7. New Lender Charges
Once you negotiate your new mortgage, your new lender may have additional charges, such as a transfer fee or admin fee.
- These can range from around £50 to £200.
Total Cost of Remortgaging
The overall cost of remortgaging varies depending on your individual circumstances. However, you could pay anywhere from a few hundred to several thousand pounds in remortgage fees.
Example Calculation:
| Fee Type | Cost Range |
| Arrangement Fee | £0 – £2,000 |
| Legal Fees | £300 – £1,500 |
| Valuation Fees | £150 – £1,500 |
| ERCs | 1% – 5% of balance |
| Broker Fees | £0 – £1,000 |
| Exit Fees | £50 – £300 |
| New Lender Charges | £50 – £200 |
Given these costs, many homeowners find that remortgaging isn’t always the best solution—especially if they’re struggling to keep up with mortgage repayments.
Is Remortgaging the Right Choice For You?
If you can afford the upfront remortgage charges and secure a lower interest rate, remortgaging might be a good option.
However, if you’re already finding it difficult to keep up with your mortgage payments, remortgaging could put you in an even tougher financial position.
For homeowners in financial distress, selling your house fast for cash could be a more viable solution.
Selling Your Home for Cash: A Better Alternative?
If you’re struggling to afford your mortgage and the costs of remortgaging are too high, selling your home for cash might be the best way forward. Here’s why:
- Avoid Remortgage Fees – No need to pay thousands in legal fees, ERCs, or arrangement fees.
- Fast Sale – Cash house buyers can complete a sale within days or weeks, helping you move on quickly.
- Guaranteed Sale – No risk of deals falling through at the last minute.
- No Estate Agent Fees – Many cash buyers don’t charge a commission, meaning you keep more money.
Selling your home for cash can provide immediate financial relief and help you clear outstanding debts without the burden of remortgage costs.
We have experience selling homes across the UK, in popular cities such as London, Manchester and Birmingham.
We maintain ourselves as one of the quickest methods to sell your house for cash.
Final Considerations on Remortgaging
Remortgaging can be a great way to save money on mortgage repayments, but the costs involved—such as remortgage solicitor fees, valuation charges, and ERCs—can add up quickly. If you’re in financial difficulty, selling your home for cash might be a better solution, allowing you to move forward without the stress of ongoing mortgage payments.
At Fast Cash Houses we work tirelessly to help our clients get the best quick sale of their house. A family-run business who have been helping people all over the UK, we have over 35 years of experience advising our customers on mortgage considerations when selling their house. If you’re considering selling a house before the end of its mortgage term, get in touch with a member of our team today and get advice on your options when rethinking your mortgage deal.
Financial pressure can feel overwhelming like a weight constantly pressing down on your shoulders. If you’re struggling with mounting debt and wondering whether selling your house might be the solution, you’re not alone. Many people face similar challenges, and understanding your options is the first step towards financial freedom.
This article aims to provide compassionate, practical guidance for anyone considering selling their home to address debt. We’ll explore the realities of debt, common reasons people find themselves in financial difficulty, and most importantly, help you make an informed decision about your future. Whether you’re facing unexpected life changes or simply feeling trapped by financial stress, there are paths forward.