Calculate Your Mortgage Fees
Your Mortgage Fee Breakdown
Detailed Fee Breakdown
Understanding Mortgage Fees
Arrangement Fees
- Charged by the lender for setting up your mortgage
- Typically range from £0 to £2,000+
- Can often be added to your mortgage
- Higher fees may come with better rates
Valuation Fees
- Cost for the lender's property valuation
- Basic valuations: £150-£500
- May be free with some mortgage deals
- Separate from your own survey
Legal Fees
- Solicitor or conveyancer fees
- Typically £500-£1,500 plus disbursements
- Includes searches and legal work
- Shop around for competitive quotes
Broker Fees
- Fee for mortgage broker services
- Usually £300-£500 for personal service
- Many brokers are paid by commission
- Can save you more than they cost
Typical Fee Ranges
| Fee Type | Typical Range | When Paid | Can Be Added to Loan? |
|---|---|---|---|
| Arrangement Fee | £0 - £2,000+ | On completion | Usually yes |
| Valuation Fee | £150 - £500 | On application | Sometimes |
| Legal Fees | £500 - £1,500 | On completion | No |
| Survey Fee | £300 - £1,000+ | After valuation | No |
| Broker Fee | £300 - £500 | On completion | Sometimes |
Complete Guide to UK Mortgage Fees (2025)
Understanding all mortgage fees helps you budget accurately and avoid surprises. UK mortgage fees can total £2,000-£5,000+, so knowing what to expect and how to minimize costs is crucial.
Complete UK Mortgage Fee Breakdown (2025)
Here's every fee you might encounter when getting a UK mortgage, organized by category:
Lender Fees (£0 - £2,500)
Also called "product fee" or "completion fee." Can often be added to loan (but you'll pay interest on it). £999 is very common.
Reserves your mortgage rate. Usually non-refundable. Many lenders don't charge this anymore.
Lender's property valuation. Cost depends on property value: £150-£300 (up to £250k), £300-£500 (£250k-£500k), £500-£1,500 (£500k+). Many lenders offer free valuations.
Rare nowadays. Only charged on very high LTV mortgages (95%+) by some lenders.
Legal & Survey Fees (£800 - £3,000)
Solicitor handles property transfer. Includes searches, Land Registry fees, and legal work. Shop around - prices vary significantly!
Checks planning, building control, environmental issues. Usually included in conveyancing quote.
Registers property ownership. Based on property value: £40 (up to £80k), £95 (£80k-£100k), £270 (£200k-£500k), £540 (£500k-£1m), £910 (£1m+).
More detailed than lender's valuation. Recommended for older properties. Full structural survey costs £600-£1,500.
Broker & Other Fees (£0 - £1,000)
Many brokers are free (lender-paid). Some charge £300-£500 flat fee or 0.3-1% of loan. Worth it for access to exclusive deals and expert advice.
Annual admin fee charged by some lenders. Check before applying - can add £1,000-£5,000 over mortgage term!
Mandatory for mortgage. Shop around - don't use lender's insurance (usually expensive). £200-£300/year is typical.
Remortgage-Specific Fees (£0 - £10,000+)
Penalty for leaving fixed-rate deal early. Can be £5,000-£10,000+! Usually waived in final 3 months of deal. Check before remortgaging.
Admin fee to close old mortgage. Also called "deeds release fee" or "sealing fee." £75-£150 is typical.
Total Typical Cost: For a £250,000 mortgage purchase, expect to pay £2,000-£5,000 in total fees (£999 arrangement + £300 valuation + £1,200 legal + £300 searches + £200 Land Registry + £300 broker + £500 survey). Remortgaging is cheaper: £1,000-£2,500 (many fees waived).
7 Proven Ways to Reduce Mortgage Fees
Smart strategies to save £500-£2,000 on mortgage fees
Many lenders offer £0 arrangement fee mortgages. The rate might be 0.1-0.2% higher, but on a £200,000 mortgage, this costs £20-£40/month vs £999 upfront - often cheaper over 2-5 years!
Many lenders offer free valuations (saving £150-£500). Some also offer free legal work for remortgages. Always ask what's included before applying.
Conveyancing quotes vary wildly: £500-£1,500 for the same work. Get 3-5 quotes from comparison sites. Savings: £300-£800. Don't use lender's recommended solicitor without comparing!
Most mortgage brokers are free (lender-paid). They access exclusive deals and often negotiate fee waivers. Never pay a broker fee without checking free alternatives first!
Adding £999 arrangement fee to a £200,000 loan at 4.5% over 25 years costs £1,680 total (£681 extra in interest). Pay upfront if possible to save hundreds!
Remortgage 3-6 months before your deal ends to avoid early repayment charges (£5,000-£10,000+). Most lenders waive ERCs in the final 3 months. Timing saves thousands!
A 4.3% rate with £1,999 fee might cost MORE than a 4.5% rate with £0 fee over 2-3 years. Always calculate total cost (rate + fees) over your intended period. Use our calculator!
Fee vs Rate Trade-off: Which is Better?
Should you pay a high fee for a lower rate, or choose a fee-free mortgage with a slightly higher rate? It depends on your loan size and how long you'll stay on the deal:
Rule of Thumb: On a £200,000 mortgage, for every £1,000 in fees, you need to save at least 0.25% on the rate to break even over 2 years, or 0.1% over 5 years. Smaller loans? Fee-free is usually better. Larger loans (£300k+)? High fees for low rates often win.
Frequently Asked Questions
What fees should I expect when getting a mortgage?
Common mortgage fees include arrangement fees (£0-£2,000+), valuation fees (£150-£500), legal fees (£500-£1,500), broker fees (£300-£500), and survey costs (£300-£1,000+). The total can range from £1,000 to £5,000 or more.
Can mortgage fees be added to the loan amount?
Some fees can be added to your mortgage, particularly arrangement fees. However, legal fees, survey costs, and some other charges typically need to be paid upfront. Adding fees to your loan increases the total amount borrowed and interest paid over time.
Are there ways to reduce mortgage fees?
Yes, you can shop around for competitive legal and survey quotes, choose mortgages with lower or no arrangement fees, use fee-free brokers, and compare the total cost of different mortgage deals rather than just focusing on interest rates.
When are mortgage fees typically paid?
Arrangement fees are usually paid on completion (or added to loan), valuation fees on application (£150-£500 upfront), legal fees on completion (£500-£1,500), survey fees after the survey is completed (£300-£1,000), and broker fees typically on completion (if charged). Booking fees (£99-£250) are paid upfront when reserving your rate. Always ask for a complete fee schedule before applying.
What's the difference between arrangement fee and booking fee?
Arrangement fee (£0-£2,000) is the lender's main product fee, paid on completion and can usually be added to your loan. Booking fee (£99-£250) is a smaller upfront fee to reserve your mortgage rate, paid on application and usually non-refundable. Many lenders have dropped booking fees, so you might only pay the arrangement fee. Always check which fees apply before applying.
Should I pay a high arrangement fee for a lower interest rate?
It depends on your loan size and how long you'll stay on the deal. On a £200,000 mortgage, a £1,999 fee for 0.3% lower rate (4.0% vs 4.3%) saves £60/month but takes 33 months to break even. For 5-year deals or large loans (£300k+), high fees often win. For 2-year deals or small loans (£150k or less), fee-free mortgages usually cost less overall. Use our calculator to compare total costs including fees.
How much does it cost to add arrangement fees to my mortgage?
Adding fees to your mortgage means paying interest on them for the entire term. Example: £999 arrangement fee added to a £200,000 loan at 4.5% over 25 years costs £1,680 total (£681 extra in interest). On a £1,999 fee, you'd pay £3,360 total (£1,361 extra). If you can afford to pay upfront, you'll save hundreds in interest. However, adding fees preserves your cash for other moving costs.
Are mortgage broker fees worth paying?
Most mortgage brokers are free (lender-paid), so you shouldn't need to pay a broker fee. If a broker charges £300-£500, they should save you more than this through better rates or fee waivers. Good brokers access exclusive deals, increase approval chances, and handle paperwork. Never pay a broker fee without checking free alternatives first - many excellent brokers charge nothing to clients.
What are early repayment charges and how much do they cost?
Early Repayment Charges (ERCs) are penalties for leaving a fixed-rate mortgage before the deal ends. They're typically 1-5% of the outstanding loan amount, decreasing over time. Example: 5% ERC on £200,000 = £10,000 penalty! ERCs usually apply for the first 2-5 years (your fixed period), then drop to £0. Most lenders waive ERCs in the final 3 months of your deal. Always check ERC terms before remortgaging or overpaying beyond the allowed limit (usually 10% per year).
Do I need a full structural survey or just a valuation?
The lender's valuation (£150-£500, often free) is basic and only confirms the property is worth the loan amount. For most modern properties (built after 1980), this is sufficient. However, consider a Homebuyer Survey (£300-£600) for older properties (pre-1980), or a Full Structural Survey (£600-£1,500) for very old properties (pre-1900), properties with visible issues, or unusual construction. The survey cost is small compared to discovering £10,000+ of hidden problems after purchase!
Can I negotiate mortgage fees with lenders?
Arrangement fees are usually fixed, but you can negotiate other aspects. Ask for: free valuation (saves £150-£500), free legal work for remortgages (saves £500-£800), cashback (£250-£1,000), or waived booking fees (saves £99-£250). Brokers are better at negotiating than individual applicants. Large loans (£500k+) or excellent credit scores give you more negotiating power. Always ask - the worst they can say is no!
What's the difference between conveyancing fees and legal fees?
They're the same thing - "conveyancing" is the legal process of transferring property ownership. Conveyancing fees (£500-£1,500) include: solicitor's professional fees, local authority searches (£150-£300), Land Registry fees (£40-£910 based on property value), bankruptcy searches, and admin costs. Always get a detailed quote showing all components. Beware of low headline quotes (£399) that exclude searches and disbursements - the true cost might be £800-£1,000.
Are remortgage fees cheaper than purchase fees?
Yes, significantly cheaper! Purchase fees: £2,000-£5,000 (arrangement + valuation + legal + searches + survey). Remortgage fees: £1,000-£2,500 (arrangement + valuation, with many lenders offering free valuations and free legal work). You save on: no searches needed (property already owned), no survey needed (unless releasing equity), and many lenders waive fees to attract remortgage customers. Product transfers (staying with same lender) are even cheaper: often just £0-£999 arrangement fee with everything else free.