Remortgaging UK: What It Actually Costs and When It's Worth It (2026)
If your fixed deal is coming to an end, you've got three real options: remortgage with a new lender, do a product transfer with your existing one, or do nothing and drop onto their standard variable rate. Here's what each actually costs, how long it takes, and how to work out which one makes sense for you.
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Build My Free Plan →How much does remortgaging actually cost?
| Cost | Typical range | Notes |
|---|---|---|
| Valuation fee | £0 – £400 | Many lenders include this free as part of a remortgage package |
| Legal/conveyancing fee | £0 – £300 | Often provided free by the new lender when you switch |
| Arrangement (product) fee | £0 – £2,000+ | Usually the biggest cost — can often be added to the loan instead of paid upfront |
| Early repayment charge (if leaving a deal early) | 1% – 5% of the outstanding balance | Only applies if you switch before your current deal ends — see below |
Many deals bundle the valuation and legal work in for free if you accept a slightly higher rate. Compare total cost, not just headline rate — a fee-free option at a marginally higher rate can beat a low-rate deal with a £999 arrangement fee.
Early repayment charges — the cost that catches people out
If you switch before your current fixed or tracker deal actually ends, you'll usually pay an early repayment charge (ERC). These typically range from 1% to 5% of your outstanding mortgage balance, and they reduce on a sliding scale the closer you get to the end of your deal — for example, a 5-year fix might charge 5% if you leave in year one, dropping to around 1% by year five. A 2-year fix typically starts closer to 2%, dropping to around 1% in its final year.
On a £200,000 mortgage, a 3% ERC works out to £6,000 — enough to wipe out most of the savings from switching to a better rate. Always check your current deal's ERC schedule before you commit to a new one.
Product transfer vs. remortgaging with a new lender
| Product transfer (stay with current lender) | Remortgage (switch lender) | |
|---|---|---|
| Typical fees | Usually no valuation or legal fees | May have valuation/legal fees, though many are covered by the new lender |
| Speed | Often around a week | Typically 4 weeks to 3 months |
| Choice of deals | Limited to your existing lender's current range | Whole market — usually more competitive rates available |
| Affordability re-check | Usually not required | Full application and affordability assessment required |
| Best for | Simplicity and speed, or if your circumstances have changed and you might not pass a new affordability check | Getting the most competitive deal, if you have time and stable, provable income |
Neither option is automatically cheaper. A product transfer avoids fees but may carry a slightly higher rate than the open market. Compare total cost on both routes rather than assuming one is always better.
When should you start the process?
Start looking around six months before your current deal ends. Most lenders let you lock in a new rate three to six months ahead, and if rates drop before your new deal starts, you can often switch to the better one at no extra cost — but if they rise, you've already secured the lower rate. A product transfer can be done in about a week; a full remortgage with a new lender typically takes four weeks to three months, and six to twelve weeks if your property is leasehold, due to extra checks on lease length, ground rent and service charges. How Long Does Conveyancing Take in the UK? covers the legal side in more detail, including what causes delays.
What people get wrong about remortgaging
Waiting too long. If your deal lapses before you've arranged a new one, you'll drop onto your lender's standard variable rate — usually their most expensive — until your new deal completes.
Only comparing headline rates. A low rate with a high arrangement fee can cost more overall than a slightly higher rate with no fees, especially on smaller balances. Compare total cost over the deal period, not just the monthly payment.
Not checking a product transfer first. Often the fastest, cheapest option to compare, even if you switch lenders anyway. Haven't worked out what you could borrow or what a new lender might offer? How to Get a Mortgage in Principle UK 2026 — Complete Guide is a useful starting point.
Forgetting to review protection at the same time. Remortgaging is a natural moment to check whether your life insurance or income protection still matches your mortgage balance and term. See Do You Actually Need Life Insurance or Mortgage Protection When You Buy a House? for how to think about it.
The bottom line
Remortgaging typically costs somewhere between £0 and £2,500 depending on fees, plus a potential early repayment charge if you switch before your current deal ends. Start comparing your options around six months before your deal expires, check a product transfer with your existing lender alongside the open market, and compare total cost over the deal period rather than just the headline rate. None of this is financial advice — a mortgage broker can confirm what you'd actually qualify for and what it would cost in your specific circumstances.
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