When comparing your current mortgage with other deals, it’s easy to compare the interest rates and work out whether you’ll be paying a lower monthly bill. However, remortgaging usually comes with a number of fees from both the lender and your solicitor which you’ll need to take into account when working out the overall cost difference. The good news is that with Beacon Mortgages there is one less fee to worry about.
Just like when your originally arranged your mortgage, you will need a solicitor to undertake the legal work required to transfer it and to pay off your existing lender. The cost is typically lower than with your original mortgage as there is less that they need to do, and some providers even offer it for free as part of their deal.
This a fee that many lenders charge when setting up your mortgage – it varies by lender and by-product and some have no fee at all. Often deals with low rates can have a higher fee than deals with higher rates – so you’ll need to take both into account when working out which is best for you. You can usually add it to your mortgage or pay it upfront – the former means you will pay interest on it making it more expensive in the long term, but the latter means you will need to provide the cash upfront which isn’t possible for everyone.
This is an additional fee that some lenders charge in order to secure a certain deal, usually between £100 and £200. They cannot be added to the mortgage and are non-refundable.
Your lender will want to check the value of your property before they lend on it. Usually they will appoint their own valuer but this will often be charged to you unless they offer it for free as part of the mortgage deal (similarly to legal fees). The fees can vary wildly depending on the value of the property – from a few hundred pounds to over a thousand.
If you are on an existing deal rather than your lenders standard variable rate and want to leave before it ends you will have to pay an early repayment charge (ERC). This can be significant, as they are usually a percentage of your mortgage so make sure you check first. They may be a set rate for the entire deal or may reduce each year.
Exit fees are sometimes charged by lenders when you pay off your mortgage due to their administration costs.
Although there are many fees to take into account, historically low interest rates means you can usually save money overall by remortgaging. Plus the the good news is that with Beacon mortgages you won’t need to worry about advisor fees! Contact us today to find out how much you could save.
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