Understanding the Costs of Remortgaging with Ape Finance your mortgage advisor in Birmingham.
Remortgaging can offer the potential for lower monthly mortgage payments, but it's essential to consider all the associated costs, not just the attractive headline rate. Not all costs apply to every remortgage, and some can be avoided by using a fee-free broker to find your remortgage deal.
Early Exit Fee: Some mortgage terms come with an early repayment charge, which can range from 2% to 5% of your outstanding loan if you switch lenders while still locked into your current mortgage deal. To avoid this charge, many homeowners choose to remortgage when their fixed or introductory tracker or discounted rate comes to an end. You can consult your solicitor about strategies to delay your completion date, ensuring your remortgage starts after your initial mortgage term concludes.
Broker Fees: Certain mortgage brokers may charge a fee for their services, typically ranging from £200 to £500.
Valuation Fee: Your lender will assess the current value of your property to determine the difference from when you first obtained your mortgage. This evaluation helps them determine the appropriate loan amount and secure it against your property's actual value. Many remortgage packages include a complimentary property valuation, but this varies by lender and the specific mortgage you choose.
Legal Fees: Whether you're buying, selling, or remortgaging a property, you'll need to engage a conveyancer or solicitor specialising in property law. These legal services come with costs, but the good news is that most remortgages offer a free legal package. In many cases, you won't have to pay any legal fees, provided there are no exceptional circumstances. It's advisable to discuss potential fees with your broker since they can differ from one lender to another.
