What mortgage fees do you pay when buying a house?

When you’re buying a home there are other costs you’ll need to pay for on top of your deposit and some of these are mortgage fees. But what are they? Read on to find out more…

It’s vital you know what mortgage fees you’ll need to pay when you’re buying a house. These are:

Mortgage arrangement fee

An arrangement fee, or product fee, is a fee the lender charges you to set up the mortgage; while some arrangement fees can be up to £1,500 or more, some deals don’t charge them at all. Take this into account when you’re comparing mortgages. But you don’t have to do the sums yourself, your mortgage adviser will do this for you.


Booking fee

Lenders may charge a booking fee of around £100-£250, when you apply for a mortgage. You won’t usually be refunded if you don’t take the mortgage out. However, some lenders don’t charge this.


Valuation fee

When you apply for a mortgage the lender won’t just take your word for it that the house is worth the amount you say it is. They’ll arrange to get it valued and the fee you’ll pay for this usually depends on how much your property is worth. But you might not have to pay this as some lenders don’t charge valuation fees on certain deals.


Mortgage advice fee  

If you’re one of the many homebuyers who uses an expert mortgage adviser to help you find the right mortgage deal, you may be charged a fee for this service. This will be a fixed amount or a percentage of the loan.


As well as mortgage fees, there are other costs involved in buying a house such as:  

Conveyancing fees: There’s all sorts of legal work that needs to be done when you buy a house, and you’ll need a conveyancer to do this.

Stamp duty: This is the tax you’ll pay when you buy a property*. The amount you’ll pay, if any, depends on the price of your property and whether you’re a first-time buyer.

Moving costs: You’ll also need to factor in costs such as a removals company or hiring a van.


Want to find out more about mortgage fees? We can help you

If you would like to find out more about mortgage fees, we have a team  ready and waiting to help you. Call 01625 573124 and our advisers will answer your questions and help find the right mortgage deal for you.


*In Scotland it’s known as land and buildings transaction tax, while in Wales it's called land transaction tax.