A Guide to Remortgage Legal Fees and the Remortgaging Process

Remortgaging can be a complex and time-consuming process, but understanding the costs involved can help you make informed decisions. Remortgage legal fees can range from £400 to £2,000 or more.

Your lender may have a list of approved solicitors, but you're not obligated to use them. You can choose your own solicitor, which may be beneficial if you have a good relationship with them or prefer their services.

Remortgage legal fees typically include disbursements, which are costs passed on to you by your solicitor. These can include fees for searches, land registry fees, and other expenses.

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Remortgaging can be a cost-effective way to lower your mortgage payments, but it's essential to factor in all the associated fees. Remortgaging can help you reduce your monthly mortgage payments, but it's crucial to look at the overall cost rather than just the headline rate.

Some remortgage costs include valuation and legal fees, which may not be payable if you remortgage with the same lender. However, arrangement fees and potentially admin charges may still apply. You'll also need to consider Early Repayment Charges (ERC) on your current mortgage deal, if applicable.

The costs of remortgaging can vary, but some common fees include solicitor costs, typically around £300, although many lenders offer free legal services as an incentive to remortgage with them.

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You'll usually have to pay an Early Repayment Charge (ERC) if you want to leave your current mortgage deal before it finishes.

An ERC can be a flat percentage of your loan, or it may reduce over time. For example, if you've signed up for a five-year fixed rate mortgage deal, the ERC if you switch away from this deal in year one might be 5%, but this could reduce by one percentage point each year, so in year five, the charge might be 1%.

Most lenders charge 1% - 5% of your outstanding mortgage balance as an ERC.

You don't usually have to pay any ERC if you're currently on your lender's standard variable rate.

If you're on a fixed-rate deal, you'll typically have to wait until the deal terms end to be able to switch mortgages without paying early repayment charges.

Here's an example of how ERC charges can vary over time:

Note that this fee does change depending on the mortgage lender, so you'll need to check your current mortgage.

By the way, when you remortgage, you are actually paying off the mortgage and taking out a new one, hence the name early repayment charge.

Comparing costs is a crucial step in the remortgaging process. You'll need to factor in various fees to determine whether remortgaging is worth it for you. Remortgaging can help reduce your monthly mortgage payments, but you must consider the overall cost, including fees and Early Repayment Charges (ERC) on your current mortgage deal.

To compare costs effectively, consider using a mortgage broker. They can help you navigate the complex world of remortgage deals and find the best option for your situation. Time is an important factor when it comes to maximising the benefits of remortgaging.

Not all lenders charge the same fees, and some may offer free legal services as an incentive to remortgage with them. However, this means you won't have a choice of solicitors and will have to use the lender's preferred legal services. Free legal fee offers typically don't apply if you're adding or removing someone to/from the title deeds during the remortgage process.

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Remortgage fees can vary significantly from lender to lender. You'll need to shop around and consider using a broker to find the right deal. With the right deal, you could save money overall and lower your mortgage costs.

It's essential to weigh up all the fees you'd pay alongside the new mortgage rate to determine whether remortgaging is worth it for you. If you're still within your current deal, and the early repayment charges are high, the numbers may not add up. However, if you still have a sizable mortgage, and your current deal is about to end, the costs of remortgaging could be worth paying if it means you avoid paying a higher SVR and you save overall.

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The remortgage process can be complex, but understanding the basics can help you navigate it more easily. Typically, it takes around 6-8 weeks to complete a remortgage.

You'll need to decide whether to remortgage with your current lender or switch to a new one. Some lenders offer a "free" remortgage deal, but these often come with higher interest rates or fees.

A remortgage application usually requires a credit check, which can affect your credit score. If you have any outstanding debts or credit issues, it's essential to address them before applying.

In most cases, you'll need to provide identification and proof of income to support your remortgage application. This may include payslips, bank statements, and other financial documents.

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You'll usually have to pay Early Repayment Charges (ERCs) if you want to leave your current mortgage deal before it finishes. These fees can be a flat percentage of your loan or reduce over time.

ERCs are fees that you must pay if you want to leave your current mortgage deal before it finishes. You should always check whether you'll have to pay any before you remortgage, as they could wipe out any potential savings you might make from remortgaging.

The cost of an ERC can vary widely, sometimes being a flat percentage of your loan, or reducing over time. For example, if you've signed up for a five-year fixed rate mortgage deal, the ERC if you switch away from this deal in year one might be 5%, but this could reduce by one percentage point each year, so in year five, the charge might be 1%.

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Most lenders charge ERCs unless you're already on your lender's standard variable rate (SVR). Fixed-rate deals usually last between two and ten years, but can be longer. You'll usually need to pay ERCs to leave before the deal terms end.

ERCs can be the most costly element when you remortgage, as most lenders charge 1% - 5% of your outstanding mortgage balance. This is why many people delay remortgaging until their deal tie-in period has ended.

You can secure a new remortgage deal six months before your current deal's end date. This can be a great way to lock in an interest rate that may not be around when your deal ends.

Typical ERC charges for switching deals are:

It's worth doing the maths to see if switching to a new mortgage deal and paying the ERCs would save you money in the long run.

Your new mortgage repayments will be different if you remortgage with a new rate or release equity from your property. This might mean paying less each month if your new rate is lower.

If you release equity from your property, you may pay more each month, depending on the amount of equity you release and your new rate.

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Legal fees are typically around £300, but many lenders offer free legal services as an incentive to remortgage with them. This means you won’t have a choice of solicitors and will have to use lender preferred legal services.

If you stay with your current lender, you may not have to pay valuation and legal fees, but you could still have arrangement fees and admin charges. It's always a good idea to check the deals offered by other lenders to see if you can save money overall.

Some lenders offer free legal work as part of the remortgage deal, which can save you around £300. However, if you need to add or remove someone to/from the title deeds during the remortgage process, free legal fee offers may not apply.

You'll typically have paid legal fees with your original mortgage, but remortgage legal costs will be lower since there's less work involved. Our advisers can help you find a solicitor if you don’t already have one.

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Here are some key points to remember about legal fees:

Free legal fee offers don’t typically apply if you're adding or removing someone to/from the title deeds during the remortgage process. It's essential to check the terms and conditions of your remortgage deal to understand what's included and what's not.

Your new lender will need a valuation of your property before they'll allow you to remortgage, so they can be certain of its worth.

Typical valuation fees range from £250 to £1,500, depending on the property's size and value.

Valuation fees can vary depending on the surveyors used, but are usually in the region of £300-£500 for most properties.

Larger or more unusual properties may incur higher fees, up to £1,500.

Some lenders offer free valuation fees as part of their remortgage deals, which can be a great incentive to choose them.

You may have already paid for a property valuation when you bought your home, which can cost around £500.

However, with most remortgages, valuation fees are often free, so you won't need to pay extra.

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Remortgaging can be a worthwhile move if it means lowering your mortgage costs overall. Paying the necessary remortgage costs can be a good investment if it leads to a lower mortgage rate.

Weighing up all the fees you'd pay alongside the new mortgage rate is crucial. This includes finding a deal that's suitable for you and your circumstances.

If you're still within your current deal, and the early repayment charges are high, the numbers might not add up. Paying remortgaging fees may not be financially sensible if you only have a small mortgage outstanding.

But if you still have a sizable mortgage, and your current deal is about to end, the costs of remortgaging could be worth paying. This is especially true if it means avoiding a higher SVR and saving overall.

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Remortgaging can help reduce your monthly mortgage payments, but you need to factor in the overall cost, including fees and Early Repayment Charges (ERC) on your current mortgage deal.

The costs you might encounter when remortgaging include valuation and legal fees, arrangement fees, and potentially admin charges.

You may not need to pay valuation and legal fees if you remortgage with the same lender, but arrangement fees and admin charges could still apply.

A fee-free remortgage won't necessarily offer you the best long-term benefits, so it's essential to weigh the costs against the potential savings.

Some lenders offer free legal services as an incentive to remortgage with them, but this means you won't have a choice of solicitors and will have to use lender preferred legal services.

Typically, solicitor costs for remortgaging are around £300, but this can vary depending on the circumstances.

Free legal fee offers don't typically apply if you're adding or removing someone to/from the title deeds during the remortgage process.

Not all lenders charge every type of fee, so it's essential to check the deals that other lenders are offering in case they could help you save money overall.

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You'll need to factor in broker fees when remortgaging, which can be a flat fee or a percentage of your mortgage amount, typically up to 1%. Some mortgage brokers offer fee-free advice, so it's worth shopping around to find a good deal.

If you're using a mortgage broker, make sure to check if their fee is refundable if they don't end up getting you a deal. Some brokers, like London & Country Mortgages Ltd, offer fee-free advice, so it's worth looking into their services.

You'll also need to consider solicitor fees, which are usually required if you're remortgaging to a different lender. Some remortgage deals may cover the cost of legal fees, but others will require you to pay.

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Booking fees can cost between £100 to £300 and aren't refundable, even if your application is unsuccessful.

These fees are charged by some lenders to effectively reserve a remortgage deal while your application is being assessed, which is why they may also be called reservation or application fees.

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You might be wondering if you'll need to pay a solicitor to remortgage. The answer is, it depends. Some remortgage deals may cover the cost of legal fees, but others will require you to pay.

If you're switching to a new rate with your current lender, a solicitor won't usually need to be involved. However, if you're remortgaging to a different lender, you'll likely need a solicitor to handle the legal paperwork.

You can usually choose between paying the solicitor's fees upfront or adding them to your mortgage, although this will increase the amount you owe and you'll pay interest on it too. Some lenders may charge up to £2,000 or more in solicitor fees, while others won't charge a fee at all.

It's essential to factor in solicitor fees when comparing deals, as they can add up quickly. Be sure to ask your lender or broker about their solicitor fees and whether they're included in the deal.

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Deeds release is a fee charged by your current lender to cover the cost of sending the title deeds of your property to your new mortgage provider. This fee can cost up to £300, although some lenders won't make a charge at all.

Your existing lender holds the deeds to your home, which is a document stating you own the property. They hold it until the mortgage is paid off.

The deeds release fee is sometimes charged by your existing lender to have your property ownership deeds transferred to your solicitor. Not all lenders impose this fee.

The typical cost of the deeds release fee is between £50 and £300, although not all lenders will charge it. It's also possible you paid this fee upfront when taking your mortgage out.

You can pay the deeds release fee upfront when you first take the mortgage out or when you leave.

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Using a mortgage broker can be a great way to find the best deal, but be aware that you may need to pay a fee for their services. This fee can be a flat rate of several hundred pounds or a percentage of your mortgage amount.

Some mortgage brokers, like London & Country Mortgages Ltd, offer fee-free advice. If a broker asks you to pay a fee upfront, check if it's refundable if they don't get you a deal.

The fee can be a fixed amount or a percentage of the loan amount, typically up to 1%. This is something to factor in when looking at remortgage fees.

At Resi Finance, you can find a broker who works with over 400 lenders to help you find the right remortgaging deal.

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