Remortgaging can be a smart move.

Whether you're coming to the end of your current deal, looking to reduce your monthly payments, or wanting to release some equity for home improvements… it can open up a lot of options.

But one of the most common questions we get is:

"What does it actually cost to remortgage?"

The answer? It depends - but the good news is, many of the costs are either manageable, avoidable, or sometimes even covered by the lender.

Let's break it all down in a simple, no-nonsense way.

First… What Is Remortgaging?

Before we get into the costs, just a quick recap.

Remortgaging is when you switch your current mortgage to a new deal - either with your existing lender or a new one.

People usually remortgage to:

  • Secure a better rate
  • Avoid moving onto a higher Standard Variable Rate (SVR)
  • Borrow more money (for example, for home improvements)
  • Change the length or type of their mortgage

1. Early Repayment Charges (ERCs)

This is often the biggest cost to be aware of.

If you remortgage before your current deal ends, your lender may charge an Early Repayment Charge (ERC).

This is typically a percentage of your remaining mortgage balance - often between 1% and 5%.

👉 For example:

If you owe £200,000 and your ERC is 2%, that's a £4,000 fee.

Good to know:

  • ERCs usually reduce the closer you get to the end of your deal
  • If your deal is ending soon, you may be able to avoid this completely

2. Exit Fees (or Mortgage Exit Administration Fees)

Some lenders charge a small fee for closing your existing mortgage.

This is often called an:

  • Exit fee
  • Deeds release fee
  • Mortgage administration fee

These are usually more modest - typically around £50 to £300.

3. Arrangement Fees (Product Fees)

This is a fee charged by the new lender for setting up your new mortgage.

Arrangement fees can vary quite a bit:

  • Some deals have no fee at all
  • Others can range from £500 to £1,500+

👉 Sometimes, a deal with a fee actually works out cheaper overall if the interest rate is lower - it's all about the bigger picture.

These fees can usually be:

  • Paid upfront
  • Or added to the mortgage (although this means you'll pay interest on it)

4. Valuation Fees

When you remortgage, the lender needs to confirm how much your property is worth.

This is called a valuation.

Costs can range from:

  • Free (many lenders offer this as part of the deal)
  • Up to a few hundred pounds, depending on the property

👉 In most cases, you won't need to worry about this - many remortgage deals include a free valuation.

5. Legal Fees (Solicitor Costs)

Remortgaging involves some legal work to transfer your mortgage from one lender to another.

The good news?

Many lenders offer free legals as part of their remortgage package.

If not, legal fees are usually in the region of:

  • £300 to £600

6. Broker Fees (If Applicable)

If you use a mortgage advisor or broker, there may be an advice fee.

At HLC Mortgages, we charge a fee for our advice and support - but in return, we:

  • Search across the market
  • Handle the paperwork
  • Guide you through the entire process
  • Help you find a mortgage that's suitable for your circumstances

👉 The key thing is understanding the value you're getting, not just the cost.

7. Potential Hidden Costs to Watch For

There are a couple of less obvious things to keep in mind:

Moving onto the Standard Variable Rate (SVR)

If you don't remortgage when your deal ends, your lender will usually move you onto their SVR - which is often much higher than your current rate.

👉 This can quietly cost you hundreds more per month.

Adding Fees to Your Mortgage

While convenient, adding fees to your loan means you'll pay interest on them over time.

So… How Much Does It Really Cost?

In reality, the cost of remortgaging can range from very little to a few thousand pounds, depending on:

  • Whether you have an Early Repayment Charge
  • The type of deal you choose
  • Whether fees are included or added

But here's the key point:

👉 A good remortgage deal can often save you far more than it costs.

Final Thoughts

Remortgaging doesn't have to be complicated - or expensive.

With the right advice, you can:

  • Avoid unnecessary fees
  • Time your remortgage properly
  • Choose a deal that works for your situation

And in many cases, the process can be smoother (and cheaper) than people expect.

If your current deal is ending in the next 6 months, it's a great time to start looking at your options - you can often secure a new rate early and still benefit if rates improve before it starts.

If you'd like help understanding your options or finding a mortgage that's suitable for your circumstances, our friendly team at HLC Mortgages are always here to help - no pressure, no jargon, just straightforward advice.

Think carefully before securing your debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.