The Question
I’ve just come to the end of the initial mortgage deal I took out when I bought my property in 2018. My repayments are now really high because I’ve started being charged interest based on my lender’s base rate.
I think I need to remortgage but I’m not sure how much it will cost? I believe rates are more expensive but are there other things to factor in too? Solicitor’s fees for example. Any advice would be very welcome as I’m feeling a bit lost.
Joe’s Answer
Remortgaging costs will depend on the lender and product you are looking to take out. Some mortgages come with arrangement fees which, yes, you can add to the loan if that’s the right thing to do.
Normally you will receive a free mortgage valuation and the legal services will either be paid for by the lender or the lender will provide you with cashback to cover this cost.
The only cost usually involved is the CHAPS fee for transferring the funds from the new lender to repay your current lender. Depending on your current lender they may also have admin costs for closing down your mortgage account.
I would recommend speaking to a whole-of-market mortgage adviser who can search amongst varied number of lenders on the cheapest options for you. They will also take into account what you are looking to achieve now and also in the future.
Meet our expert
Introducing Joe Capon of The Mortgage Bubble, who is ready to answer your questions…
Joe Capon has more than 10 years’ experience in the mortgage industry. He set up The Mortgage Bubble in 2021 and it is now a multi-award-winning mortgage firm, which strives to deliver the best mortgage advice to its clients which meets their needs now and also in the future. If you have a question for Joe email our editor and she’ll pass it on to him – kate.saines@emap.com
