Whilst you may be considering a re-mortgage in order to take gain of lower payments or other cost savings, it is fundamental that you look at the whole cost of a re-mortgage prior to your begin of the process. Whilst you may save money on your monthly payments, you can find that the fees you incur in switching your home loan can consume into the savings that you build. So, if you are thinking of applying for a re-mortgage, make sure you take these 5 potential fees into consideration.

Application Fee: Application fees are one of the most general charges to take into account when you re-mortgage. Lenders seldom recommend something for nothing and even if they meet some of the other costs involved in re-mortgaging, you will normally have to pay a fee.

Sometimes a fee is payable when you make a re-mortgage application in order to secure a specific deal. Other times, an application fee is payable when your re-mortgage completes, and can often be added to the mortgage.
Valuation: Whenever you take out a re-mortgage or mortgage, the lender wants to know that your property is sufficient security for the loan.

So, they will ask a qualified surveyor to visit your home. Even providing a current market value for your possessions, the surveyor will also confirm to the lender that the property is in suitable condition for a mortgage.

Of course, there is a cost for this valuation. Valuation fees can range from around $250 to over $1,000 depending on the worth of your home and the type of valuation that is undertaken. Often, you will find that a mortgage lender will meet the costs of a basic mortgage valuation as part of the re-mortgage process.

Solicitors Fees: A solicitor or conveyances is involved in the re-mortgage process in order to ensure that issues of legal charges and correct land registration are concluded. Again, a lender will over and over again meet the legal costs of a re-mortgage, particularly if you use their nominated solicitor. However, if there is any additional legal work entailed in your application "" perhaps you are adding or removing a name from your mortgage as part of the process "" you may find that you have legal fees to pay.

Broker Fees: Many people choose to employ the services of a mortgage broker to help them with their re-mortgage. Brokers often have access to a wide range of deals and can aid with the paperwork involved in a re-mortgage application. Many mortgage brokers charge for their services and so you should take any intermediary fee into account when you calculate your re-mortgage savings.

Early Repayment Charges and Break costs: Even if your new lender offers a completely "fee free" re-mortgage, you may still find that you incur charges for switching your home loan from your current lender to a new provider. As your existing lender may levy charges when you repay your mortgage with them.

If you are now benefiting from a fixed rate deal, you lender may impose "early repayment charges" for flouting the terms of that deal. Even if there are no penalties from ending your current mortgage, the lender may still charge deferred establishment fees" or other administrative costs to close your mortgage account with them.