Costs of Remortgaging include
- Seeking advice about mortgage deals should be free there are many no fee brokers who can offer advice. They earn their money by gaining commission from the mortgage dealer you recommend. However if regulated by the FSA they should offer impartial advice.
- Solicitors fees and disbursements will cost around £300 this is the cost of transferring title deeds and confirming your ownership
- There could be an arrangement fee with your new lender of £200-£300 this is to cover the administration costs of selecting the new fee.
- Valuation fees. These will be around £300 this is to confirm the value of your house. This value is used to determine how much secured funds can be borrowed.
- Exit costs. Your old mortgage dealer may charge you exit costs. This may be termed as a deeds release fee or funds transfer fee. To minimise these costs it is a good idea for your first enquiry about remortgaging to be with your existing mortgage lender.
If a mortgage dealer offers a no fee remortgage service it is important to remember that they will need to recoup these fees somehow. They are likely to be able to do this by offering a less competitive interest rate.