Remortgage Costs

[jonnyboy 1]

A question on remortgaging a BTL. This came out of a conversation with someone else who has BTLs and are currently remortgaging.

He wants a new deal as his is ending, but to me the costs are insane. Is this normal?

Booking fee - £1500
Solicitor - £1000
Broker - £600

If you're having to pay this every 2yrs that is probably going to eat a big chunk of your profits. Have I/he misunderstood something?

[Stuart Phillips 254]

Unless its something complex or specialist, like a large HMO, limited company, multi unit etc, then those are high.

Regular BTL mortgages would cost about:

• Valuation: Free
• Solicitors: Free or Cashback (Cashback results in better solicitors)
• Arrangement fee: £0 - £2000 depending on the deal, you might save more than £2000 over 2 or 5 years in interest by taking the high fee low interest option. Typically on loans over £150k - £200k
• Broker fee: £300 but my fees are lower than average.

The better way to assess is total cost over the initial period, thats what your signed in for and you want to simply find the deal that costs the least, it doesent really matter how you pay, its a cost regardless.

Im all for paying for good advice, but a straight like for like remortgage has to come down to price predominantly, and its not hard to shop around and compare total cost.