Costs of remortgaging
Lenders are keen to encourage you to remortgage and many of them offer packages to help with the costs.
These packages often include payment of valuation fees and legal costs. If your lender doesn’t offer a remortgage package you will have to pay to switch.
Costs will include the lender’s valuation of around £200 as well as mortgage set-up costs. These can range from £200 to £800 and can be charged for reserving the mortgage, administration and completion.
Some of these costs may be payable upfront, and some you can add to the mortgage. But this will mean paying interest on the fee for the entire term of the mortgage.
You will also have to pay a solicitor to switch the mortgage for you. As well as the basic legal charges you will may have to pay for a local search which is usually around £150.
Your existing lender may charge a redemption fee if you switch mortgages before the end of your existing special deal. Check what the fee is before switching, otherwise you may be in for a nasty surprise when you get your bill from the solicitor.
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Date: 3rd, April, 2006
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