The costs involved in remortgaging your property can be enough to make anyone pause and think. This big decision often comes with extra fees that can take you by surprise if you’re not prepared.

In the following guide, we explain each of the different costs to give you an idea of the prices associated with remortgaging and offer tips to hopefully save you some money. Whether you’re searching for a better offer, consolidating your debts, or releasing equity from your property – keep reading to find out what fees you’ll want to take into consideration before proceeding with your remortgage.

One of the major benefits of remortgaging is securing a better deal with a lower interest rate than your current mortgage. While this is a clear advantage for any homeowner, it’s important to look at the additional costs involved in remortgaging – rather than simply the rate itself. 

So, how much does it cost to remortgage exactly? Let’s break it down. 

Early Repayment Charges (ERCs)

Cost: 1% - 5% of your outstanding mortgage

You only need to pay ERCs if you choose to remortgage before your introductory rate period ends. You may also incur ERCs if you overpay by more than the lender has stipulated you can in the contract or if you pay back your loan in its entirety at an earlier than agreed upon date. 

Be sure to find out when your early repayment period elapses before switching to a new deal. Failure to do so may significantly lower, or even remove, the potential savings you could make. Should you choose to pay the ERC, you may have the option to pay upfront or add the costs to your new mortgage – though choosing the latter means you will also pay interest on it. 

ERCs are typically between 1% and 5% of your outstanding balance. For example, if you still have £100,000 left to pay on your loan, it will result in a £1,000 fee. In many cases – and especially if your lender is a high street bank like NatWest, HSBC, or Lloyds – the longer you have remaining on your introductory period/deal, the higher your ERC will be. Some lenders tier down the % of the penalty for each year you have remaining on your deal.

It’s recommend you start arranging your remortgage up to 6 months before the end of the tie-in period. This way, you can secure a new rate early and lower the chance of going onto your lender’s more expensive SVR.

Deed Release Fee

Cost: £50 – £300

A deed of release is a legal document that removes a previous claim on an asset - such as a home - and is proof of release from this binding agreement. 

Otherwise known as an administration fee, the deed release fee is charged by lenders once your mortgage is paid in full. Essentially, it covers the legal costs of having your title deed returned. It’s charged if you dissolve your contract before the pre-agreed term, though it differs from an ERC. 

It may be that you have opted for a more attractive deal with another lender once your fixed rate ends. The deed release fee can also be levied if you pay off your outstanding mortgage by overpaying or by paying with a large lump sum. Please note: your contract may also stipulate a mortgage exit fee of between £75 and £300. 

Product Fee

Cost: £999 – £1,999

A product fee is charged by lenders for arranging credit on your behalf. While it may seem unusual that this is considered an administrative fee, it’s actually linked to the lenders’ interest rates. Lenders generally offer a product with a product fee - often £999 or £1999 but this can vary - and then a product with no product fee. The product without a product fee generally has a higher rate of interest. Your broker can work out what one is most cost-effective for you. In fact more often than not, if you have a large loan, having a product fee is often cheaper overall.

Before making a decision on whether to remortgage your property, look through the annual percentage rates (APR) of each lender to get a thorough idea of the associated costs involved in remortgaging. High fees may actually be better for those taking out a large loan because they’ll have cheaper interest rates over a long period. Conversely, low fees are ideal for those with smaller loans, as they can delay payment on the mortgage. 

Many lenders will allow you to add the product fee to your loan, but you’ll have to pay interest on it. 

Conveyancing Fee

Cost: around £300, although the lender may cover it free of charge

When you’re remortgaging a property, it’s advisable to hire a property conveyancing solicitor. Their responsibilities are as follows: performing ID, Land Registry and leasehold checks; obtaining redemption statements from your existing lender; conducting property searches; issuing a formal offer after valuation; and combing through your contract before gathering the signatures of each involved party. 

Many remortgages include a free legal package that covers such charges, though in this event the solicitor will be chosen by the lender and you won’t have a say on who they pick. Alternatively, you may pay the fee and have the freedom to shop around for a solicitor. Some lenders may even offer you a cashback incentive if you use your own. 

Your property conveyancing solicitor will also pay off your old mortgage upon completion and send the remaining money to you. 

Mortgage Broker Fee

Cost: free, or a fixed fee or % of your loan amount

If you use a mortgage broker you may be charged a fee. At John Charcol, we don’t charge a free until you’ve received a mortgage offer. Our advisers will also make sure you’re aware of any fees before doing any business with you, so you’ll know what to expect long before you’ll be charged.

It’s best to use a mortgage broker when applying for a mortgage because, as not only will we find you the most competitive deal for your situation, we’ll also guide you through the process, calculate your affordability, handle the paperwork, submit and manage your mortgage application, liaise with the lender, arrange insurance and protection and more.  

You’ll also find you’ll have to use a mortgage broker if you’re applying for a niche product or have a complex situation as many specialist lenders won’t work with borrowers directly, instead requiring intermediaries.

At John Charcol our job is to save you money and make the mortgage process as easy as possible for you. We’re with you every step of the journey, from your first call with us, through to completion and beyond. To find out more about our fees and how we can help, contact us on 0330 433 2927.

Valuation Fee

Cost: around £300 – £400, although it may be offered free of charge

A valuation fee is the only survey cost you may have to pay. You won’t be required to fork out for a homebuyer’s report or structural survey in most cases as they aren’t always necessary. Through either a desk-based or physical inspection, your lender will look to confirm that the property is worth the amount you’ve asked to borrow. 

A valuation is necessary for the lender’s security. If you fail to repay the loan for whatever reason, the lender is then able to repossess the property and recoup their investment. This fee is paid when you first apply for a mortgage and is often bundled in with the booking and arrangement fees. 

You can do some of the research yourself by accessing online valuation tools – which are based on the Land Registry Database – and comparing similar properties in your area. Remember, your available interest rates are subject to change if your valuation places you in a different LTV band. 

Next Steps

These are the typical costs that are involved in the remortgaging process, but it’s a good idea to speak to a mortgage broker to discuss the variables that may affect your specific remortgage costs. Your John Charcol adviser will make sure to walk you through all the fees you’ll face before finalising any deal. 

You may also find it helpful to ask for a copy of the key features illustration, which documents every potential fee. For more information on how you can lower the costs involved in remortgaging, contact our team at John Charcol directly. 


Compare remortgage rates and deals with our mortgage comparison tool and discover how this type of mortgage works, the process and if it’s suitable for you.

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Find out how much you could borrow on a remortgage in our guide. We go through how lenders determine what to lend you, how LTVs work and more.

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Not sure whether now’s the time to remortgage? Find answers to all your remortgage questions.

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Try our interest-only calculator to work out how much your monthly interest payments will be based on what you want to borrow and your mortgage rate.

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On this page you’ll find our detailed mortgage terminology glossary. There’s a lot of jargon out there but we’re here to make it easy.


There are many valid reasons to remortgage. If you’re considering remortgaging your home but need help finding the right option for you, contact John Charcol. Our team of experienced mortgage advisers can recommend a range of remortgage options to suit you. Request a call back or call us on 0330 433 2927 to get in touch.