Stamp Duty CalculatorRemortgage Costs Explained
UK 2026 full breakdown — product fees, valuation, legal costs, ERCs, exit fees, broker fees, and how to keep total cost down.
A UK remortgage typically costs £400-£1,500 in total upfront fees when switching lenders, or £0-£999 for a product transfer. The headline number hides materially different cost structures depending on whether you stay with your lender or switch, take a free-legal product or pay for your own conveyancer, and the size of the Early Repayment Charge if you break the fix early. This guide breaks down every cost line, gives the typical 2026 range, and shows how to keep the total down.
The 7 cost lines
- Product fee
- Valuation fee
- Legal / conveyancing fee
- Early Repayment Charge (only if breaking fix early)
- Exit fee from current lender
- Broker fee (if using a fee-charging broker)
- Higher Lending Charge (rare; only at very high LTV)
1. Product fee
The lender's arrangement fee for the specific mortgage product. 2026 typical range: £0-£1,999. Some lenders offer fee-free products at slightly higher rates; some charge percentage fees (e.g. 1-2% of the loan) on lowest-rate products.
The product fee can usually be added to the loan, but doing so means paying interest on the fee for the loan term. Calculate whether the rate saving outweighs the interest on a £1,500 fee:
- Pay upfront: Lower total cost but higher cash demand at completion.
- Add to loan: Spreads the cost but adds £4-£8/month interest on a £1,500 fee over 25 years.
Compare total cost over the fix period using the remortgage savings calculator.
2. Valuation fee
The lender's surveyor confirms property value for security purposes. For remortgages, this is usually:
- Desktop valuation: Free — uses house price index data and Land Registry records.
- Drive-by valuation: Free or £100. Surveyor confirms property exists and external condition.
- Full physical valuation: £200-£400. Sometimes required for older properties, non-standard construction, or higher loan amounts.
Most 2026 remortgage products include free valuation. If yours doesn't, factor in £200-£400.
3. Legal / conveyancing fee
Remortgage conveyancing is much simpler than purchase conveyancing — no chain, no SDLT to file, no enquiries on the seller's title (you're already the owner). Typical 2026 fee £300-£600 for a standard remortgage.
Most remortgage products include "free legals" where the lender pays a panel conveyancer to handle the switch. Trade-offs:
- Pros: Zero out-of-pocket legal cost; lender handles everything; fast on standard cases.
- Cons: You don't choose the firm; panel firms are sometimes slower; less responsive than a firm you've selected yourself.
For most remortgages, free legals are the right choice. Pay for your own conveyancer if your case is complex (recent equity release, second charge, unusual leasehold).
4. Early Repayment Charge (ERC)
The penalty for repaying or remortgaging during a fixed-rate period. Typical structure:
| Year of 5-year fix | Typical ERC |
|---|---|
| Year 1 | 5% of outstanding balance |
| Year 2 | 4% |
| Year 3 | 3% |
| Year 4 | 2% |
| Year 5 | 1% |
Worked example: £200,000 outstanding, breaking fix in year 3. ERC = 3% × £200,000 = £6,000. The new rate saving needs to exceed £6,000 over the new fix period to make breaking worthwhile.
The waiver window: Most lenders waive ERC in the final 3 months of the fix. Always time your remortgage completion to fall within this window.
5. Exit fee (existing lender)
Also called "deeds release fee", "admin fee", or "redemption fee". Charged whenever your existing lender closes the mortgage — including at natural fix-end. Typical £75-£295.
Set in the mortgage offer at the original application. Some lenders haven't increased their exit fee for 15+ years (capped at the original offer level), so the actual figure may be lower than current market rates.
6. Broker fee
Mortgage broker fee models vary widely:
- Commission-only (no buyer fee): Most UK brokers. The lender pays the broker a procuration fee (~0.35% of the loan). You pay nothing.
- Fixed fee: £300-£600 typical. Often refunded if no mortgage completes.
- Percentage fee: 0.3-0.5% of the loan. Used by some specialist brokers.
- Hybrid: Smaller upfront fee plus commission from lender.
Always ask the broker upfront which model they use. By FCA rules they must disclose this before recommending products. Commission-only brokers are not biased — they have the same commission across most lenders so their recommendation reflects product fit, not their pay.
7. Higher Lending Charge (rare)
An insurance premium some lenders charge at LTVs above 90% to protect themselves against negative equity. Increasingly rare — most modern 95% LTV products don't include HLC. If your product has one, it's typically 1-1.5% of the amount above 75% LTV. Check the lender's offer carefully.
Total cost matrix — worked examples
Example 1: Product transfer with existing lender
| Cost | Amount |
|---|---|
| Product fee | £999 |
| Valuation | £0 (waived) |
| Legal fees | £0 (no conveyancing) |
| ERC | £0 (timed at fix end) |
| Exit fee | £0 (no change of lender) |
| Broker fee | £0 (transfer direct with lender) |
| Total upfront | £999 |
Example 2: Switch to new lender with free legals
| Cost | Amount |
|---|---|
| Product fee | £1,499 |
| Valuation | £0 (free as part of product) |
| Legal fees | £0 (free legals) |
| ERC | £0 (timed at fix end) |
| Exit fee (old lender) | £195 |
| Broker fee | £0 (commission-only) |
| Total upfront | £1,694 |
Example 3: Switch with own conveyancer + fee-charging broker
| Cost | Amount |
|---|---|
| Product fee | £999 |
| Valuation | £300 |
| Legal fees | £450 |
| ERC | £0 |
| Exit fee | £195 |
| Broker fee | £499 |
| Total upfront | £2,443 |
Example 4: Breaking fix early (year 3 of 5)
| Cost | Amount |
|---|---|
| Product fee | £999 |
| Valuation | £0 |
| Legal fees | £0 |
| ERC (3% of £200k) | £6,000 |
| Exit fee | £195 |
| Broker fee | £0 |
| Total upfront | £7,194 |
The new rate over the next fix needs to save more than £7,194 to justify breaking early.
How to reduce total remortgage cost
- Time completion to the no-ERC window. The single highest-impact lever.
- Choose products with free legals and free valuation. Typically saves £400-£800.
- Use a commission-only broker. Saves £300-£600 vs fee-charging.
- Compare total cost over the fix period, not headline rate. A £1,999 fee + 4.69% rate often loses to a £0 fee + 4.89% rate over a 2-year fix.
- Add the product fee to the loan only if the rate saving outweighs the interest cost.
- Refresh AIPs in time. Letting an AIP expire mid-process can force re-application at potentially worse rates.
- Consider product transfer vs full switch. Product transfer eliminates 4 of 7 cost lines.
Special situations
Remortgaging while self-employed
Self-employed remortgages need 2-3 years' SA302 plus tax year overviews. Some lenders accept 1 year with broker introduction. Expect product fee at the higher end (£1,500-£1,999). See the self-employed mortgage guide.
Remortgaging a leasehold property
Lease length matters. Lenders typically want 85+ years remaining at end of mortgage term. If your lease has dropped below 80 years since the original mortgage, you may need to extend the lease before remortgaging — adding £8,000-£15,000+ of cost depending on premium. See ground rent explained for the lease length / mortgage link.
Remortgaging with adverse credit
A product transfer with your existing lender avoids a new credit check. Switching to a high-street lender with recent defaults usually fails. Specialist adverse-credit lenders exist but charge 1.5-3 percentage points above standard rates and may have higher fees.
Remortgaging to release equity
Standard remortgage costs apply, but the lender will assess affordability on the new (higher) loan amount. The additional borrowing is typically at the same rate as the rest of the mortgage. Some lenders separate the additional amount into a "further advance" at a slightly different rate.
Hidden cost: the time-on-SVR penalty
The most expensive remortgage cost isn't in any of the 7 categories above. It's the time spent on the lender's Standard Variable Rate between your fix ending and the new deal starting.
On a £200,000 mortgage, SVR is typically 2-3 percentage points above market fix rates. Each month on SVR costs ~£300-£500 more than the equivalent fix would cost. Two months on SVR = £600-£1,000 of avoidable expense.
Start the remortgage process 4-6 months before the fix expires to avoid this entirely. The cost of starting late dwarfs any product fee or broker fee you might be optimising over.
When the saving doesn't justify the cost
Sometimes the cheapest decision is to stay on your existing product. Scenarios:
- You're mid-fix with no significant rate gap and high ERC.
- Your existing fix has 6+ months to run and rates are stable.
- You're planning to move within 12 months (porting may be cheaper than remortgaging).
- Your circumstances have weakened (income drop, recent missed payments) — affordability check may fail.
Use the remortgage savings calculator to model whether the switch is worth it for your specific numbers.
2026 cost landscape — what's changed
Two notable shifts in UK remortgage costs in 2026 vs 2024:
- Free legals are now standard on most remortgage products from high-street lenders. Two years ago this was a perk; now it's a default. Always check whether your chosen product includes free legals before paying separately.
- Broker commission disclosure improved following FCA Consumer Duty rules. Commission-only brokers now disclose the exact procuration fee they'll earn from each lender. Use that disclosure to see whether the broker's recommendation is genuinely product-driven or commission-tilted.
Product fees and ERCs have moved only marginally. The 5-year-ERC structure (5%, 4%, 3%, 2%, 1%) is now near-universal.
Frequently asked questions
How much does a remortgage cost in the UK?
£400-£1,500 typical for switching lenders, £0-£999 for product transfer. Free-legals and free-valuation product offers often eliminate two of the largest line items.
What's a product fee?
The lender's arrangement fee. £0-£1,999 typical. Lower-rate products often have higher fees, so calculate total cost over the fix period.
Do I need to pay for a new valuation?
Most lenders offer free valuation as part of the product. Standard remortgage valuation is usually desktop or drive-by. Full physical valuation £200-£400 only if required.
What are legal fees for a remortgage?
£300-£600 typical. Most remortgage products offer 'free legals' where the lender pays a panel conveyancer. Faster but you don't choose the firm.
What's an Early Repayment Charge?
Penalty for repaying during a fixed-rate period. Typical 5% in year one, declining 1% annually. Most lenders waive ERC in the final 3 months of the fix.
How much do mortgage brokers charge?
Many UK whole-of-market brokers are commission-only — you pay nothing. Fee-charging brokers £300-£600 typical. By FCA rules they must disclose their model.
What's an exit fee?
What your existing lender charges to close the mortgage. £75-£295 typical. Not the same as ERC — exit fee applies whenever you redeem.
How can I reduce remortgage costs?
Time completion to no-ERC window; choose products with free legals; use a commission-only broker; compare total cost over fix period not headline rate.
Related guides
Related calculators
Last reviewed: 21 June 2026.