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  • Writer's pictureMatthew Pigrome

The Considerations and Cost Implications of Remortgaging: A Guide by Matthew Pigrome

As a homeowner, you may reach a point where you consider whether to stick with your existing mortgage lender and complete a product transfer or explore the option of remortgaging.

In this blog post, I'll walk you through the considerations and cost implications of remortgaging, helping you make an informed decision that aligns with your financial goals.

Product Transfer -v- Remortgage
  1. Understanding Remortgaging: Remortgaging involves switching your existing mortgage to a new lender or renegotiating the terms with your current lender. It provides an opportunity to take advantage of lower interest rates, access additional funds, or change your mortgage terms to better suit your needs. However, it's crucial to evaluate the potential costs involved before making a decision.

  2. Additional Costs: When considering a remortgage, it's important to factor in the additional costs that may arise. These can include legal fees, valuation fees, arrangement fees, and potential early repayment charges from your current lender. While some lenders offer incentives to cover these costs, it's essential to calculate and compare the overall expense of a remortgage versus a product transfer.

  3. Payrate vs. Overall Cost: One key aspect to consider is the payrate, which refers to the interest rate you'll be paying on your mortgage. While a remortgage may offer a lower payrate, it's essential to analyse the overall cost of the remortgage, including any fees and charges involved. In some cases, the combined cost of a remortgage may be higher than a product transfer, even with a lower payrate. It's crucial to assess your individual circumstances and financial goals to determine the most cost-effective option.

  4. Seeking Professional Advice: Navigating the complexities of remortgaging requires expert advice. Consulting with a qualified mortgage advisor, such as the experienced team at Mortgage321, can provide invaluable insights tailored to your specific situation. They can help you understand the financial implications, weigh the pros and cons, and guide you towards the most suitable solution for your mortgage needs.


Remortgaging offers opportunities for potential savings and improved mortgage terms. However, it's crucial to carefully consider the additional costs and overall expense involved in comparison to a product transfer. Seeking professional advice is essential to make an informed decision aligned with your financial goals.

Remember, at Mortgage321, we are dedicated to providing expert mortgage solutions and personalised advice to help you achieve your homeownership goals. Get in touch with us today to explore the best options for your remortgaging needs.

Call 01255 440142 or visit

Disclaimer: The information provided in this blog post is for informational purposes only and should not be considered as financial advice. Always consult with a qualified professional before making any financial decisions.


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