There are a number of fees and charges you might need to pay if you’re taking out a mortgage. These include mortgage broker fees, adviser fees, valuation fees, arrangement fees and more. Use our handy mortgage costs guide to find out how they all work and how much you might have to pay.
Alternatively, why not arrange a free mortgage appointment with one of our independent mortgage experts by simply clicking here.
Fees and charges
Wondering how much mortgage fees will cost you? It can depend on a number of factors, like your personal situation, or the mortgage product you’re applying for.
The guide below will give you an idea of what to expect.
Lenders can use different terms to describe their fees, so make sure you know what each cost includes and when you’ll need to pay.
Since March 2016, mortgage lenders have to include any mortgage related fees, such as redemption charges and valuation fees, as part of the annual interest calculation. This way of calculating the interest is called the Annual Percentage Rate of Charge or APRC.
All mortgage product related costs should be outlined in the Keyfacts Illustration which the lender is required to provide you with.
Other mortgage-related charges
Mortgage-related charges can add thousands of pounds to your costs.
Legal and survey fees
Land & Buildings Transaction Tax on residential property purchases above £145,000
First-time-buyers will pay no Stamp Duty on properties costing up to £175,000.
If you’re purchasing an additional home, for example a buy-to-let property for more than £40,000, you’ll have to pay an extra 4% on top of each Land & Transaction Buildings Tax band.
Picking the right mortgage deal
Buying a property is a big investment and it is a good idea to get some advice.
Some mortgage deals might seem attractive, but fees can quickly add up.
When comparing mortgage offers, add up all the charges over the length of the deal as well as your monthly repayments.
For example, if your repayments are £1,000 per month on a two-year fixed-rate mortgage, plus £300 in fees, the total cost of the deal is £24,300.