Cost-free remortgaging

Glastoun

Is it possible to remortgage at zero cost, e.g. no legal fees, no valuation fees etc? I've seen a few things about 'we pay your fees' when moving a mortgage to another provider, but does that include absolutely everything?

We may have a lump sum that we can put into our mortgage as an overpayment, leaving us at 50% LTV instead of 85% LTV. But if we just put that into the existing deal that would still leave us with a 4.5% interest rate, whereas by remortgaging we could potentially get it closer to 2.5%. It's just whether any costs would offset the benefit of doing this.

amnblog

Sometimes 'costs' such as product fees are mathematically justified by the rate you can access.

There are usually zero fee remortgage products available on the market but that does not necessarily make them the best option.

For example there is a 1.74% rate on the market with a £1995 product fee.
Not ideal for a £50,000 remortgage but worth considering for £500,000.

You need to consider the short and the longer term.

ACG

Very few lenders charge for legal fees and/or remortgages it also possible to get a re-mortgage with an arrangement fee. But it will be included in the rate somewhere down the line.

Sometimes it is cheaper to pay a fee and get a lower rate (usually for the bigger mortgages).