Remortgage fees: what you'll actually pay, and the break-even sum

"Is it worth it after fees?" is the right question, and it has a real answer. Here's every fee, what's avoidable, and the one division that settles it.

The fee list

FeeTypical amountAvoidable?
Arrangement / product fee£995–£1,499Yes — fee-free versions of most deals exist at a slightly higher rate
Valuation£0–£400Usually free on remortgage deals
Legal / conveyancing£0–£500Often included ("free legals") on remortgage deals
Broker fee£0–£500Yes — fee-free brokers are paid commission by lenders
Mortgage exit / discharge fee£50–£300No — your old lender's admin charge
Early repayment charge (only if leaving mid-deal)1–5% of balanceYes — wait until your deal's end, or use the 6-month advance window

Realistic all-in cost if you pick a deal with free valuation and legals, use a fee-free broker, and skip the arrangement fee: under £300. Worst case with everything: ~£2,000.

The break-even sum

Months to break even = total fees ÷ monthly saving.

Example: £1,100 of fees, and the new deal saves £280/month → 4 months to break even, then £280/month is yours. Over the rest of a 2-year fix that's about £5,600 net.

Get your monthly saving from the calculator, add up your actual fees, divide. If break-even lands inside the deal period with months to spare, the fees are noise. If it barely fits, take the fee-free version of the deal instead.

Get your monthly saving — free calculator, no sign-up

Fee vs rate: the trap on the menu

Lenders usually offer each deal two ways: lower rate + £999 fee, or higher rate + no fee. The fee'd version headline-grabs, but it only wins when the extra rate saving repays £999 inside the deal. Rule of thumb on a 2-year fix: the fee'd deal must save about £42/month more than the fee-free one. That generally needs a balance above ~£150,000. Below it, fee-free wins and the shinier headline rate is a worse deal.

ERCs: the fee that changes the answer

Everything above assumes you're at (or within six months of) your deal's end. Leaving mid-fix triggers the early repayment charge — 1–5% of balance, so £2,000–£10,000 on a £200k mortgage. Occasionally rates fall far enough to justify paying it; usually they don't. Run the sum both ways before believing anyone — including a broker with a commission on the line.