Remortgaging your home can potentially mean big savings, but remember to keep an eye out for the little costs that come with it!
Before you dive into signing a new mortgage deal, you need to be aware of all possible remortgaging costs.
These costs can sometimes be hefty, but the savings you will make remortgaging your home are well worth the expense.
It’s always better to be prepared. No one wants to be caught off guard by an unexpected expense which could really throw a spanner in the works of your mortgage deal.
That’s where our expert team comes in handy. We can guide you through the process of getting a better deal on your mortgage, helping you to avoid the pitfalls of unnecessary payments along the way!
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Before agreeing to a deal, your new lender will have to value your property.
However, unlike your original mortgage, you won’t need to pay for a homebuyer’s report or a structural survey.
But you might be in luck, as many remortgage packages provide this service free of charge!
These fees are paid to the solicitor who transfers your mortgage from one lender to another. Usually, this costs something in the neighbourhood of £250 – £1000.
But, again, you might get lucky and find a mortgage package that covers this charge!
The least glamorous of the remortgaging costs!
Basically, these fees pay for your current lender to send your solicitor the title deeds.
You won’t always have to pay this fee, but, if you do, expect it to set you back by £50 – £300.
Early Repayment Charge
If you remortgage your home while still under the terms of your previous mortgage deal, you might have to take on an early repayment charge.
For more information about early repayment charges, and how to avoid the worst of them, please get in touch with our expert team.
This fee goes by many names, but it is usually a fixed amount or a percentage of the amount that you’re borrowing. This is the main charge from your new mortgage lenders.
You can choose to pay this fee upfront or add it to your new mortgage.
But beware! If you add this fee to your mortgage, you could end up paying interest on it for the life of the loan!
Does what it says on the tin: the broker fee is the fee your mortgage broker charges.
Brokers shop around for an appropriate mortgage on your behalf. They can ask anything from £300 to 1% of the loan amount for this service.
Remember, at FOMO Mortgages all our advice is free. We won’t charge you any fees for our services!
Don’t let this discourage you!
We’re aware that this can all seem a little overwhelming at first. Especially as this is just a sampling of the possible fees associated with remortgaging your home.
But here lies the power of our expert financial advice: we can make the process of remortgaging as painless and simple as possible, smoothing your path to potential savings.
Keep in mind that you potentially stand to save thousands of pounds. In these days of high prices, there is no reason to keep sinking that kind of money into an overpriced mortgage payment.
If you want more information about the remortgaging process, or need help in rationalising your finances to pay these fees, please don’t hesitate to get in touch with us.