The costs to remortgage can vary immensely. If you are remortgaging your own residential property through a high street bank, they normally offer you a free valuation and free legal costs, providing you use the lenders own solicitors. Some offer you cashback instead of free legal services and some even offer free valuation, free legal services and cashback.
Lenders may offer a few different rates.
1. A low rate with a higher arrangement fee
2. A slightly higher rate with a lower arrangement fee
3. A higher rate with no arrangement fee at all
So, its best to work out the overall cost of the mortgage when choosing your rate and fees associated with it because if you have a small mortgage i.e. under £100,000 then it may be worth while you paying a higher interest rate and pay no fee whatsoever. Your adviser will be able to tell you this and make a recommendation based on how much mortgage you have and over how long.
The main thing to think is that the arrangement fees can normally be added to the mortgage if the lender allows this and the valuation and legal costs are paid by the lender so in essence you don’t really have any upfront costs.
Just remember that if you add your arrangement fee to your mortgage you will pay interest on it so think carefully before you add it.
If you are remortgaging a buy to let property or if you have had bad credit in the past, then you could potentially pay an arrangement fee, valuation and legal fees. These fees will be explained to you before you decide to proceed with your mortgage so no surprises.
The fees to set up Buy to Let mortgages can be very high so please ask your adviser what the fees will be. There are several buy to let lenders who will offer free valuation and free legal fees but again it depends on the free.
If you have had bad credit in the past it may be advisable to stay with your existing bank if you are with a high street bank because many sub-prime or bad credit mortgage companies will charge a higher rate of interest and you will have to pay valuation and solicitors fees to switch so its worthwhile speaking to your adviser to see if it is worthwhile switching your current mortgage deal with your current lender