Re-mortgage: Don't forget the fees.


Remortgaging a house is usually a good way to use part of the home’s equity to access large sums of money. It can also be used to switch to friendlier mortgage terms which have the potential of making some extra money through monthly payments. However, before deciding on remortgaging your home, it’s always a good idea to find out more about the fees that are associated with the process. Some of these include:



The Legal Fees 

Switching from one mortgage to another is usually a legal process since it may mean switching to another lender. You will need a real estate lawyer to go over the details of the deal to make sure that it’s above board before going ahead with the process. Find out how much this will cost before committing to doing the remortgaging.

Exit Fees

In order to re-mortgage a home, you will need to exit from your old mortgage, a process that might cost you some money. A similar cost is the cost of early repayment of the mortgage from your old lender. Some lenders may opt to take up these fees, and some may not. Always try to find out how much you are supposed to pay before starting this process.

Arrangement Fees

Some lenders will charge you a fee for arranging the remortgage. This varies from lender to lender, so you need to consult them before getting a concrete idea as to how much this will cost.

In many cases, the cost of remortgaging will be significant. If you do not plan for it, you may initiate the process only to find that you can’t see it through. This might put you in a dire financial position, and should therefore be avoided as much as possible. Other fees you will need to consider include the cost of mortgage advice and life insurance that you may need when switching lenders.

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