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2 min read
Remortgaging can be a smart move, but before you dive in, it’s good to know about the costs that can pop up along the way. Some fees come from leaving your current deal, and others from setting up the new one. Plus, don’t forget to budget for your new mortgage payments.
Here’s a quick rundown of the common fees you might come across:
Still in a fixed-term deal with your current lender? You might have to pay an early repayment charge which is usually a percentage of your outstanding mortgage balance. It’s a sort of “breaking up” charge for leaving early.
Your current lender may charge you to release the legal documents (also known as the deeds) so your new lender can take over.
This is what you pay to get your new mortgage deal. You can choose to add this to your mortgage, please check with your lender for further details.
Some lenders ask for a booking fee to secure your new deal, a bit like a reservation fee to hold your rate while everything gets processed.
Before your new lender agrees to anything, they’ll want to check the value of your home. That’s what this fee is for.
This one covers the legal bits. Things like transferring the mortgage, sorting out the legal paperwork, and making sure your new lender is officially registered.
If you’re using a mortgage broker to help find the best deal, they might charge a fee for their advice and services.
And of course, don’t forget to factor in your new monthly payments, which will depend on your new interest rate and the terms of your new mortgage.
