Remortgaging? Here’s what you can expect to pay for conveyancing

There are lots of reasons you may be considering remortgaging your home—maybe you want to free up some cash, undertake some home improvements or simply find a better deal on your monthly repayments.

Whatever your reasons, you’ll need to be aware of the fact that the process will cost you money too. Knights bridge estate agent, Plaza Estates advises, “Remortgaging can be notoriously complicated so it’s essential that you understand what costs are involved in order to ensure you won’t end up out of pocket.”

We’ve outlined a few common costs here:

·         Early repayment fees. Most lenders have a clause that means you’ll have to pay to break out of your deal early. If you’re still within your tie in period you should expect to pay your lender back between 1% and 5% of the property value to help the lender recoup their losses. 

·         Exit fee- this is another charge your existing lender will probably present you with. It covers the cost of admin fees as your lender transfers the title deeds to your solicitor or conveyancer. Not all lenders charge this, whilst some try to add on extra fees, so check all your documents first and query anything that doesn’t look right. On average you can expect to pay up to £300 for this.

·         Mortgage arrangement fee- again, you’ll need to read the small print on this one as some lenders try to sneak in hidden extras.  M&M Property explains, “Many lenders will give you the option of paying this fee upfront or adding it to your overall mortgage- either way, you should expect to pay anything up to £2,500.”

·         Booking fee- some lenders charge a booking fee in order to secure a special deal or fixed rate.  This is paid on application and usually costs between £100 and £200.

·         Conveyancing- there will be some legal required in order to remove your previous lender’s details from all documentation and register your new lender to the property. The fee for this is usually somewhere around £300, which you’ll have to pay direct to your solicitor or conveyancer.

·         Broker fees- if you’re going through a broker you’ll need to pay them a fee, which varies according to the individual company.  Some charge a fixed fee of about £300 while others ask for 1% of the property value. This is something you’ll need to be clear about from the outset as 1% of an expensive property can set you back a lot of money.

·         New mortgage repayments- obviously, your new lender isn’t helping you out with a deal out of the goodness of their hearts and you’ll agree to pay them a monthly amount. Be sure you understand the terms of the new contract and you can manage the repayments.

As Batter sea estate agent, Eden Harper summaries, “People often remortgage to save money, without realizing that the act of remortgaging itself comes with a multitude of costs. Always take your time to collect a variety of quotes, make sure you can afford it and read the small print!”