Upfront Costs to Expect

• Arrangement fees: Charged by the lender for setting up the mortgage.
• Valuation fees: For checking the property’s worth.
• Broker fees: If you’re using a mortgage adviser, ask about fees upfront.
• Legal fees: Solicitors or conveyancers handle the legal side of the purchase.
• Stamp duty: A government tax (not always applicable for first-time buyers).

Ongoing and Hidden Costs

• Monthly repayments: Principal and interest combined.
• Insurance: Buildings insurance is usually required; contents is optional but wise.
• Mortgage account fees: Some lenders charge fees for managing your account.
• Early repayment charges: Apply if you repay your mortgage too soon.
• Exit fees: Sometimes charged when your mortgage ends or you switch.

Beware of ‘Headline Rates’

A low interest rate looks great, but the fees attached can make the overall deal more expensive. Always calculate the total cost over the fixed term—not just the rate alone.

How an Adviser Can Help

A good mortgage adviser will break down every cost and help you compare deals on a like-for-like basis. They’ll flag any hidden fees and ensure you understand what you’re signing up for.

Conclusion

The cheapest deal on paper isn’t always the best in practice. Understanding the full picture allows you to make smart, informed decisions about your mortgage.

Remortgaging – When Is the Right Time to Switch?

Remortgaging isn’t just for people in financial trouble. It can be a powerful way to save money, release equity, or gain better flexibility. But timing is key. Here’s how to know when it might be time to switch.

Your Fixed Rate Is Ending

When your fixed-rate deal finishes, you’re usually moved onto the lender’s standard variable rate (SVR)—which is often higher. This is one of the most common triggers for remortgaging.

Tip: Start looking for a new deal 3–6 months before your current one ends.

Interest Rates Have Dropped

If rates are significantly lower than when you took out your mortgage, switching could reduce your monthly payments. But weigh this against any early repayment charges on your current deal.

You Want to Borrow More

Need funds for home improvements, debt consolidation, or another big expense? Remortgaging may allow you to release equity—especially if your property’s value has increased.

Your Circumstances Have Changed

Higher income, a better credit score, or reduced debt can make you eligible for better deals. Remortgaging is a chance to renegotiate on more favourable terms.

You Want More Flexibility

Some mortgages come with features like overpayment allowances or payment holidays. If your current deal doesn’t offer these, switching could give you more control.

How to Get It Right

Speak with a mortgage adviser who can review your current deal, assess the market, and calculate the true cost of switching. Sometimes staying put makes more sense—other times, a better deal awaits.

Final Thoughts

Remortgaging can be a smart move—but only if done at the right time and for the right reasons. With expert advice and proper timing, you can optimise your mortgage and stay in control of your finances.

‍