On average, solicitor fees for remortgaging are around £454. However, you will also need to factor in other costs associated with remortgaging. This includes disbursements, early repayment charges and mortgage broker fees.
This article discusses the various remortgage costs you should consider and how long remortgaging can take.
Solicitors Fees for a Remortgage
Solicitor fees for remortgaging cost £454 on average. These fees can vary depending on the solicitor you choose and the complexity of your remortgage.
When researching legal fee quotes, make sure that you check whether the cost includes VAT or not. If VAT is not included, the actual cost will be an additional 20%.
Some mortgage lenders may cover solicitor fees as part of their remortgage package, however, this is not guaranteed.
Other legal fees and disbursements to consider include:
Conveyancing Searches - £250-£450
Your solicitor will need to conduct conveyancing searches to help identify any defects with your property. While not all lenders require searches, it can be a precaution to determine whether the property's value is affected. Costs will vary based on factors such as your location and property type.
Electronic bank transfer fee - £34
When swapping lenders, you may be subject to an electronic bank transfer fee. This ensures your data is moved from one lender to the other efficiently.
Electronic ID check - £12
This is a verification process to ensure that the person applying for the remortgage is the correct person and helps to prevent fraud from taking place.
Title deeds copy - £11
Your solicitor may need a copy of the title deeds for the application.
Land Registry fees - £6
Similar to the title deed copy, your solicitor may also need to verify your property ownership with the Land Registry. This is another small cost.
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Remortgage Costs for Leaving your Current Deal
The total cost of leaving your current deal will depend on factors such as the type of mortgage you have and how much you have left to pay. Costs to keep in mind include:
Early Repayment Charge (ERC) - 1-5% of property value
If you leave your current deal before it ends, you may have to pay an early repayment charge. Most lenders charge between 1% and 5% of the remaining balance.
Deed Release Fee - £175
This is an administration fee charged by the mortgage lender. It covers the legal costs associated with returning the title deeds to you.
Mortgage Exit Fee - £58
This is the cost of closing your mortgage account with a lender. This can be through paying it fully or transferring it to another lender.
Remortgage Costs for Getting your New Deal
Here are the costs associated with getting a new remortgage deal:
Arrangement Fee - £1,500
The arrangement fee is a reservation fee to secure your loan while your remortgage application is being processed. Most lenders won't refund this fee if you choose not to proceed with the remortgage so it's important to check the terms and conditions.
Valuation Fee - £150-£1,500
Your lender may request a mortgage valuation to be carried out to check the value of the property against the value of your mortgage. These costs will vary based on the total value of your property.
Mortgage Broker Fee - £450
The mortgage broker fee is charged for using a broker’s services. Some will charge a fixed fee while others may charge based on the percentage of your new mortgage amount. Costs will vary as a result.
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Stamp Duty and Remortgaging
Stamp Duty is a tax paid when purchasing a new home worth over £250,000 in England and Northern Ireland, £225,000 in Wales, and £175,000 in Scotland. Unless you transfer the property's legal title as part of your remortgaging plan, you will not have to pay stamp duty.
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Is It Cheaper to Remortgage with Same Lender?
Yes, it can be cheaper to remortgage with the same lender, but this isn't always the case. Your current lender will already have access to your details which can make the process quicker.
Typically when you remortgage with the same lender you won't need to pay any exit fees as you would when changing lenders. Other fees may be reduced including legal and arrangement fees and early repayment charges, though this is not guaranteed.
However, changing lenders can be less expensive due to better remortgage offers and lower loan-to-value (LTV). A mortgage broker can help explain your available options and how different remortgage routes might work for you.
How Long Does Remortgaging Take?
The remortgaging process takes between four to eight weeks on average. The process is longer than applying for an initial mortgage, which takes an average of 18 to 40 days.
A new mortgage application will require more evidence and documentation when remortgaging. Exact times will depend on factors such as the type of mortgage you have and if you choose to swap lenders.
Finding a Solicitor
Here at Compare My Move, we can connect you with up to 6 solicitors for remortgage to carry out the legal paperwork involved. Fill out our online comparison form today to compare quotes and save on your total conveyancing costs.
All our partners are trusted and verified having passed our strict verification process. All our conveyancers are regulated by either the SRA, CLC, LSS, LSNI or CILEx.
Finding a Mortgage Broker
Some people choose to work with a mortgage broker to help compare remortgage deals and navigate the process.
We can connect you with up to 5 mortgage brokers in the area. Simply fill out our online form and compare quotes today.
*Data taken from Uswitch and Compare My Move research. See how our data works.
