Mortgage fees are the additional costs involved in arranging and completing a mortgage beyond the deposit. They include arrangement fees, valuation fees, solicitor costs, broker fees, and early repayment charges — and can add £2,000–£5,000+ to the total cost of buying a home.
Arrangement / Product Fee
This is charged by the lender for setting up your mortgage. It typically ranges from £0 to £2,000. Mortgages with lower interest rates often come with higher arrangement fees — so it's worth calculating whether a lower rate with a high fee actually saves you money overall.
You can usually pay this upfront or add it to your mortgage balance. Adding it to your mortgage means you'll pay interest on it for the full term.
Valuation Fee
The lender arranges a valuation of the property to confirm it's worth the amount you're borrowing against. This typically costs £0-£500 depending on the property value and lender. Many lenders now offer free valuations as an incentive.
Note: This is not the same as a homebuyer's survey. The lender's valuation only confirms the property is suitable security for the loan — it won't identify structural issues.
Solicitor / Conveyancer Fees
You'll need a solicitor or licensed conveyancer to handle the legal work. Typical costs are £1,000-£2,000 including disbursements (land registry searches, local authority searches, etc.).
If you're remortgaging, many lenders offer free legal work as part of their deal, which can save you significant money.
Survey Costs
While optional, a proper survey is strongly recommended — especially for older properties. Types include:
- HomeBuyer Report: £400-£600 — suitable for standard properties in reasonable condition
- Full Structural Survey (Building Survey): £600-£1,500 — recommended for older, larger, or unusual properties
- Condition Report: £250-£400 — basic overview for newer or standard properties
Other Fees to Budget For
- Mortgage broker fee: £0-£500 (many brokers are paid by lenders so charge nothing)
- Buildings insurance: Required before completion, from ~£150/year
- Stamp duty: See our separate stamp duty guide for current rates
- Removal costs: £500-£2,000 depending on distance and volume
- Early repayment charges (ERCs): If leaving an existing deal early, typically 1-5% of the outstanding balance
Frequently Asked Questions
- Can I add mortgage fees to my loan?
- Most lenders allow you to add the arrangement fee to your mortgage. This avoids an upfront cost but means you pay interest on that fee for the entire mortgage term, so it costs more overall.
- Do I have to pay a mortgage broker fee?
- Not always. Some brokers (including us) offer free consultations. Many brokers are paid by the lender, though some charge a fee for specialist cases. Always clarify fee structure upfront.
- What is the difference between a valuation and a survey?
- A valuation is for the lender — it confirms the property is worth enough to secure the loan. A survey is for you — it identifies structural issues, damp, subsidence, and other problems. Valuations are often free; surveys cost £250–£1,500.
- Are there any hidden fees in a mortgage?
- Not if you use a good broker. Key fees to watch for: arrangement fee, valuation fee, legal fees, early repayment charges (ERCs), and exit fees. We always provide a full cost breakdown before you commit.
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