When you remortgage you will usually have to pay out a few
hundred pounds for a property valuation
for your new lender and conveyancing
fees for making the transfer.
Some mortgage
lenders try to lure borrowers from their rivals by covering
these costs themselves.
However, the interest
rate can be higher on this kind of deal, so it may not be
as good as it seems.
Set-up fees
You are also likely to face a set-up
fee (often called an arrangement or reservation fee)
of anything from a couple of hundred pounds to £700 or more.
Again, you may be able to get fee-free deals, but these
too come at a price in terms of interest rate.
Adding it all up
You may find it's cheaper to pay valuation, solicitor's
and set-up fees to get a lower interest rate.
Or, you may find that once youve taken these and any early
redemption penalty on your existing
mortgage into account, it's cheaper to stay put for the
time being.
You can't be sure until youve added up all the costs.
If you don't feel confident about doing this yourself, ask
your mortgage broker to do it for you.
And even if you are sure of your calculations, there's no
harm having someone look them over and check you haven't
missed anything.
If
you want to get your best remortgage
quote quickly and easily we offer a great new service.
We can put you in contact with a professional mortgage adviser.
It's free and completely confidential. Simply fill out the form
below
