AUSCC

Remortgage costs

There are several remortgage costs that you will encounter from lender to lender and it helps to be conversant with the common costs that a lender is likely to charge. While some costs are not necessary at all, there are others that can be crucial in enabling you to get better deals by paying them.  The costs will vary from lender to lender and you can find that a cost charged by one lender may not be charged by another lender. For instance, there are companies that charge legal fees to cover any legal expenses while others offer these services at their cost. The following are the common remortgage costs you are likely to encounter.

Valuation fees
A valuation fee is charged to facilitate the valuation of your property in order to ascertain its true value; based on the information you have offered. Though important, some lenders will not charge you to conduct valuation on your property, others charge a few of usually £200-400.

Early repayment charges (Remortgage redemption penalties)
These charges are effected by the lender when the customer tries to remortgage before  the set out period for a special  mortgage offer expires. They can turn out to be very expensive because they are essentially meant to discourage the customer from Remortgaging before the end of the agreed period. The lenders don’t find it any helpful to them especially when a customer remortgages with another company. Be sure to know what the exact terms of your mortgage are before applying for it.

All in all, make sure you ask your lender for their breakdown of fees, some take them in commission, others a flat fee, so be sure you know!