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    Purchasing a house is exciting but also somewhat frightening. Often, the worry stems from what mortgage fees to expect. For this reason, it is important for homebuyers to know which fees can be included in their mortgages and which fees can be avoided.

    Our mortgage guide seeks to explain the mortgage fees so that you will be comfortable with them when buying your home, whether they are application fees, fees for certain mortgage products or early repayment charges. Our objective is to provide you with the information and understanding necessary not to get hit by any hidden costs!

    Essential Fees & Mortgage Costs

    Understanding the different types of mortgage fees is crucial for evaluating the total cost of a mortgage. These fees vary in type and amount, which can significantly impact the financial commitment of obtaining a mortgage.


    mortgage fees

    How much are typical mortgage fees?

    Below, we have provided a table detailing the various mortgage fees you might encounter and their typical cost ranges, along with brief descriptions for each. For more comprehensive details, please read beyond this table.

    Fee / Charge Name Cost Range Brief Description
    Arrangement Fees £250 – £2,000 Charged for setting up the mortgage, can be added to the balance or paid upfront.
    Booking Fees £100 – £300 Paid on application, usually non-refundable even if the application fails.
    Valuation Fees £150 – £1,500 Covers lender’s assessment of the property’s value, varies by property and lender.
    Legal and Solicitor Fees Around £1,500 For handling legal aspects of the mortgage process; varies by transaction complexity.
    Land Registry Fee £200 – £500 For registering the property; depends on its value.
    Stamp Duty Variable Tax on property purchases over £250,000 (relief available for first-time buyers).
    Mortgage Account Fee £100 – £300 Administrative costs for account management, may be included or separate.
    Mortgage Broker Fees 1% – 2% of loan amount (or fee-free) For broker services in finding and arranging your mortgage, varies by broker.
    Early Repayment Charges (ERCs) 1% – 5% of the amount If you repay your mortgage early, during a specified period.
    Higher Lending Charges Up to 1.5% For high loan-to-value ratios, usually when the deposit is small.
    Mortgage Exit Fee £75 – £300 Charged when refinancing or paying off your mortgage early.
    Telegraphic Transfer Fee £25 – £50 For transferring the mortgage funds from the lender to the solicitor.

    Arrangement Fees (Product Fees)

    Mortgage lenders set mortgage product fees for the provision of certain specific types of mortgages, these charges may be paid upfront or added to the loan. However, be aware that they will attract interest if included in the mortgage repayment.

    Typically, lenders provide two different types of mortgage products:

    1. A deal with a lower interest rate but charges a product fee;
    2. Another alternative is to deal with a higher interest rate without any additional charges.

    Therefore, when comparing mortgages, you must take note of both, understand what each offers, and know what exactly you are paying for and how it affects you.

    • Cost: The typical product fee ranges from £250 to £2,000. Nevertheless, you can add this fee to your current mortgage balance, but remember that doing so also means paying it off over time with interest. It’s better to check whether the fee is refundable if the mortgage does not go through.

    Booking Fees

    Mortgage booking fees (application fees) are charges imposed by the lender to keep a particular mortgage arrangement for you. It is non-refundable even if everything does not go as planned with the mortgage.

    • Cost: Usually between £100 and £2000, generally non-refundable.

    Valuation Fees

    The mortgage valuation fee is what the lender charges for assessing the value of your prospective property. This fee can go up or down depending on how much the house is worth and the policy of a particular provider. In order to entice borrowers, some mortgages offer their valuations without any charge, thus reducing upfront costs when taking out a mortgage.

    • Cost: It is usually between £74 and £300 and generally non-refundable. The price could be higher if you choose to upgrade your valuation survey.

    Legal and Solicitor Fees

    Legal fees refer to the overall costs of hiring a solicitor or conveyancer to handle the legal side of your mortgage. This can include handling contracts, dealing with the Land Registry, etc. The price all depends on how complex the transaction is and what the property value is. A few lenders will cover these fees as part of their incentive plan for borrowers, but it’s usually just certain products that get this offer.

    • Cost: Around £1,500, varying with your property value and complexity.

    Government-based Mortgage Fees and Charges

    The government sets these fees, and they must be paid. They’re necessary, even if they may feel like an unnecessary cost, but they are not related to the charges from lenders. The people who process your mortgage application will charge you, too.

    Land Registry Fee:

    Charged for registering your property with HM Land Registry upon completion.

    • Cost is based on property value, ranging from £200 for properties between £100,001 and £200,000, up to £500 for higher-priced properties.

    Stamp Duty:

    Stamp Duty is a tax you pay when buying a property in the UK, and it applies to houses valued at over £250,000. The duty adds further cost to any transaction, so if you’re already close to the limit it could prove prohibitive. However, there are certain exemptions. For example, first-time buyers don’t have to pay Stamp Duty on properties up to £300,000.

    • Cost: The rates are tiered and depend on the property value:
      • Up to £250,000: 0%
      • £250,001 to £925,000: 5%
      • £925,001 to £1.5 million: 10%
      • Above £1.5 million: 12%

    Additional Property: If you own another residential property, you usually pay an additional 3% on top of the standard rates.

    First-Time Buyers: First-time buyers can claim a stamp duty discount (relief). They pay no SDLT up to £425,000 and 5% SDLT on the portion from £425,001 to £625,000. They cannot claim relief if the price is over £625,000.

    Surcharge: There is usually a 2% surcharge on residential property in England or Northern Ireland.

    Mortgage Account Fee

    Lenders often charge a mortgage account fee for the administrative costs of setting up, running, and closing your mortgage account. The amount varies from lender to lender and might be part of the overall mortgage cost or charged separately. Ask your mortgage provider if this fee applies to you and how they handle it.

    • Cost: This fee varies between lenders but is typically between £ 100 and £300. It’s important to check with your mortgage provider, as it might be included in the overall mortgage cost or charged separately.

    Mortgage Broker Fees

    When you work with a mortgage broker, some will want to charge you a fee. These fees reimburse the broker for its services in locating and organising your mortgage. It’s important to note that some brokers offer free services (called fee-free mortgage brokers) and are compensated through commissions from lenders instead.

    • Cost: The cost of using a mortgage broker can be different in each case. Certain brokers offer free services and receive compensation through lender commissions instead. Others may charge a fee that is based on a percentage of the loan amount, which can typically range from 1% to 2% of the total value of the loan.
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    Special Circumstances: Additional Charges for Mortgage

    Charges during special situations like remortgaging or unique mortgage scenarios can be quite a surprise. This part of the guide will help you understand and manage extra costs to make informed decisions.

    Early Repayment Charges (ERCs)

    If you pay your mortgage back before your current deal is over, An Early repayment charge are usually charged by your lender. This charge is specifically used during fixed-rate, tracker, or discount periods. Different mortgages and lenders will offer different rates.

    • Cost: An early repayment charge typically costs 1-5% of the overpaid amount or remaining mortgage balance.

    Higher Lending Charges

    A high loan-to-value ratio (LTV) on your home will result in higher lending charges. However, this isn’t always the case, as it usually depends on how small your deposit is compared to the loan amount. Lenders take this step to buy insurance for their safety should a default occur. The price of these charges is calculated as a percentage of the loan amount.

    • Cost: Up to 1.5% of the mortgage size (usually applicable when borrowing 90% LTV or more)

    Mortgage Exit Fee

    A mortgage exit fee is charged by some lenders when you refinance your home, also known as remortgaging. The cost covers the administration expenses required for processing the discharge of a mortgage, and it varies depending on the lender and agreement you’re involved with.

    • Exit Fee: This ranges from £75 to £300. It is not always charged, especially if a mortgage discharge fee was paid during the application.

    Mortgage Fees for Remortgaging

    If you ever decide to remortgage, you might eventually incur some specific fees. These charges are different than the ones that come with getting a mortgage for the first time. Here’s what they could look like:

    • Arrangement Fees for the New Mortgage: Like with a new mortgage, remortgaging often comes with fees. For example, you might have to pay a completion or mortgage arrangement fee to set up the new loan. These costs can add to the amount you owe and should be considered when comparing different refinancing options and their benefits.
    • Valuation Fees: Some lenders may require a Remortgage Valuation of the property for mortgage renewal purposes.
    • Legal Fees: Understanding Remortgage Solicitor Fees is important if legal services are required for transferring the mortgage; these fees may apply.
    • Exit Fees from Current Mortgage: When switching to a new mortgage lender, be aware of any exit or closure fee or discharge fees associated with your current mortgage.

    Understanding these fees is crucial for accurately assessing the cost-effectiveness of remortgaging and ensuring that it aligns with your financial goals.

    Mortgage Discharge Fee (Deeds Release Fee)

    The Mortgage Discharge Fee is also known as the Deeds Release Fee. It is what lenders typically charge when you completely pay off your mortgage or move to a different lender. The Mortgage Discharge Fee caters for any administration costs associated with closing your mortgage account. You should consult your lender to know if this fee exists and its value. Its presence can cause you to reconsider the repayment of your mortgage or switching lenders.

    • Cost: The cost can vary significantly between lenders but typically ranges from about £50 to £300.

    Charges for Late Payments

    Late payments can result in extra charges and impact your credit score:

    • Late Payment Fees: These fees are usually charged as a percentage of the overdue amount. The exact percentage can vary based on the lender’s policies and the terms of your mortgage agreement.
    • Impact on Credit Score: Consistently late payments can negatively affect your credit rating, potentially leading to higher interest rates in the future.

    Awareness of these fees can help you plan your finances more effectively, especially if you’re considering refinancing or at risk of late payments.

    Additional Mortgage-Related Charges

    There are several other charges that potential homeowners should be aware of, on top of the primary mortgage fees. Depending on the specifics of the mortgage deal and the property, these costs vary.

    Survey Costs

    Survey costs occur when a detailed inspection is conducted to assess the property. There are different types of surveys depending on the depth of information you need:

    • Basic Valuation Survey: Often required by the lender, this survey checks your property’s value so that they can plan accordingly. The cost changes based on the price of your property, but it usually falls in the range of about £100 to £300. In total, UK citizens typically spend around £320.
    • Homebuyer’s Report: This report is more detailed and pinpoints any visible issues within the house. Different factors like size, age, type, and condition can cause prices to fall anywhere from around £400 to £1,000. On average though, Brits will spend close to £450.
    • Full Structural Survey: This is the most comprehensive survey and even covers older properties. It gives you deep insights into every aspect of your home’s structure. Costs for this survey can be anywhere between approximately £500 to £1,500 — with most people spending around £1k for it alone.

    For more read our Ultimate Guide to Home Surveys for Buyers

    Telegraphic Transfer Fees

    Telegraphic transfer fees, or CHAPS fees, cover the cost of transferring your mortgage funds from the lender to your solicitor. It’s pretty much exactly like it sounds, you’re just paying for a service that sends your money from one person to another.

    • Cost: A telegraphic transfer fee can range from £25 to £50 and is generally non-refundable.

    Insurance-Related Fees

    Insurance-related fees encompass various charges associated with insuring the property:

    • Building Insurance: Required before a mortgage is approved, covering damage to the property structure. The cost varies based on the property’s value, location, and other factors.
    • Life Insurance: While not mandatory, it’s often recommended to cover the mortgage in case the borrower dies. The cost depends on the coverage amount, the policyholder’s age, health, and other factors.
    • Mortgage Payment Protection Insurance (MPPI) Covers mortgage repayments in case of illness or unemployment. The cost varies based on the coverage amount and the borrower’s circumstances.

    Understanding these additional charges is crucial for a comprehensive view of the total mortgage security costs.

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    Getting Help from a Mortgage Broker

    Knowing all the mortgage fees is essential for anyone looking to buy a home. It will allow you to navigate the complex world of mortgage financing, from extra charges like solicitor costs and product fees.

    If you want to avoid unnecessary payments like early repayment fees, it’s best to consult a professional who knows mortgages. That’s where a broker comes in.

    YesCanDo Money is a fee-free mortgage broker that can offer expertise to help you find the right deal. They also provide:

    • Independent advice: Get advice that suits your exact financial situation to make better-informed decisions.
    • Guidance throughout the application process: With step-by-step assistance, they’ve got your back to ensure the application process goes as smoothly as possible.
    • Special access to deals: Gain access to exclusive offers that might not be publicly available on comparison sites, which could mean better rates and terms.

    With YesCanDo Money’s comprehensive support and fee-free mortgage advice, you can expect a help in hand throughout your mortgage journey.


    Here are the answers to frequently asked questions about mortgage fees. These are designed to address common concerns and put borrowers at ease.

    Mortgage fees usually include arrangement, booking, valuation, and legal costs. Additional charges may apply depending on the lender and product.

    No, it is not mandatory. A broker can earn money from a lender without charging you. But some brokers charge a fee for their services, so ask ahead of time.

    Most mortgage arrangement fees can be added to the loan amount. However, this will increase your overall cost because you’ll pay interest on those fees over time.

    This fee is usually 1% of your mortgage amount. It’s known for being charged as an arrangement or product charge and can vary depending on your lender and loan size.

    Some lenders will have an application fee (also called a mortgage booking fee) that you must pay for them to process your request. But not all lenders will have this fee, so shop around.

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    Steve Roberts (MAQ)
    Steve Roberts (MAQ)

    Stephen Roberts MAQ is the founder of YesCanDo Money, one of the UK's largest no-fee mortgage brokers. With more than 30 years of hands-on experience in the mortgage industry, Steve really knows the ins and outs of mortgages. He's become a trusted expert and authority in the field, thanks to his deep understanding of the mortgage landscape. Speak to Steve or a member of his knowledgeable team today by completing our contact form:

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