Remortgage costs explained: what switching really costs

Remortgaging usually costs far less than people expect, because lenders compete for switchers with free valuations and free legal work. The costs that do matter are the product fee and — if you leave a deal early — the early repayment charge.

The costs, one by one

• Product (arrangement) fee. Charged by the new lender for the deal — anything from nothing to around £1,000–£2,000, and on some deals a percentage of the loan. You can usually add it to the mortgage, but then you pay interest on it.
• Booking fee. A smaller, often non-refundable fee some lenders charge to reserve a deal.
• Valuation. Often free on remortgage deals.
• Legal work. Many remortgage deals include free legal work, or a cashback towards it. Using your own solicitor costs extra.
• Exit or deeds release fee. A modest admin fee from your current lender when the mortgage is closed.
• Early repayment charge (ERC). Only if you leave your current deal before it ends. It's usually a percentage of the balance, which can add up to thousands — so timing matters most.
• Broker fee. Some brokers are paid by the lender and charge you nothing; others charge a fee. Ask up front.

How to keep the cost down

• Time your switch so the new deal starts after your ERC period ends — most lenders let you secure a new rate around six months ahead.
• Compare the total cost over the deal period, not just the rate. See our guide to fee versus no-fee deals.
• Get your current lender's product transfer offer first — it usually has no legal or valuation costs, and it's the number the rest of the market has to beat.

See today's remortgage rates and no-fee deals.

Fees vary by lender and change often, so always check the deal's own terms. This is general information, not mortgage advice.