UK Mortgage Fee Comparison Calculator 2025

Main UK mortgage fees include arrangement fees (£0-£2,000+, also called product or completion fees), valuation fees (£150-£1,500 depending on property value), booking/application fees (£99-£500, though many lenders have eliminated these), legal fees (£800-£1,500 for conveyancing), and broker fees (£0-£500, many brokers are fee-free). Some lenders offer fee-free mortgages but typically have higher interest rates to compensate. Total upfront costs typically range from £1,500-£5,000 depending on the lender and property value.

It depends on your loan amount and how long you'll keep the mortgage. For larger mortgages (£200k+) and longer terms (5+ years), paying higher upfront fees for lower rates often saves money overall. Example: On a £300,000 mortgage, a deal with 4.5% rate + £1,999 fee vs 4.8% rate + £0 fee. Over 5 years, the higher-fee option saves £3,600 despite the upfront cost. The break-even point is typically 18-36 months. If you're planning to remortgage within 2 years, lower fees usually win. For 5-year fixes, lower rates typically win. Always calculate total cost (fees + interest) using our Mortgage Comparison Calculator.

Yes, most UK lenders allow you to add arrangement and other fees to your mortgage loan, reducing upfront costs but increasing total interest paid. Example: Adding a £999 fee to a £300,000 mortgage at 5% over 25 years costs an extra £6.30/month (£1,890 total interest on that £999). Pay upfront if: you have savings and plan to remortgage within 2-3 years (saves interest). Add to mortgage if: you're cash-strapped or staying 5+ years (spreads cost). Middle ground: pay some upfront, add remainder to mortgage. Calculate the impact using our Repayment Calculator.

Calculate the break-even point: divide the fee difference by monthly payment savings. Example: Option A (4.5% + £1,999 fee) vs Option B (4.8% + £0 fee) on £300,000 mortgage. Monthly payment difference: £60. Break-even: £1,999 ÷ £60 = 33 months. If you're staying 3+ years, Option A saves money (£3,600 over 5 years). If remortgaging in 2 years, Option B is better. General rule: For 2-year fixes, lower fees often win. For 5-year fixes, lower rates typically win. For 10-year fixes, lower rates almost always win. Use our Mortgage Comparison Calculator for precise calculations.

Typical break-even points range from 18-36 months depending on fee size and rate difference. A £1,000 fee with 0.3% rate advantage breaks even in 24-30 months. A £2,000 fee with 0.5% rate advantage breaks even in 20-28 months. Rule of thumb: If staying longer than break-even + 12 months, higher fees for lower rates usually worth it. Example: £1,500 fee difference, £250/month savings = 6 months break-even. Stay 18+ months to make it worthwhile. For remortgages, consider your likely remortgage timeline. For first-time buyers planning to move up the ladder in 3-5 years, calculate accordingly. Always factor in early repayment charges (ERCs) which typically apply for 2-5 years.

Pay upfront if: (1) You have savings and plan to remortgage within 2-3 years (saves interest), (2) You're a higher-rate taxpayer with savings (opportunity cost is lower), (3) Fees are small (£500-£1,000). Add to mortgage if: (1) You're cash-strapped and need funds for moving costs, (2) You're staying 5+ years (spreads cost), (3) You can invest the cash elsewhere at higher returns. Example: £1,500 fee on £250,000 at 5% over 25 years costs £9.45/month extra (£2,835 total interest). If you can earn 6%+ investing that £1,500, adding to mortgage makes sense. Middle ground: Pay some upfront (e.g., £500), add remainder (e.g., £1,000) to mortgage. This balances cash flow and interest costs.

Avoidable fees: (1) Broker fees (£0-£500) - use direct lenders or fee-free brokers who earn commission from lenders, (2) Unnecessary insurance products - shop separately for life insurance, critical illness, and income protection rather than accepting lender's bundled products (save 20-40%), (3) Higher-tier valuations - basic valuation often sufficient unless buying older property (save £300-£800), (4) Some booking fees - many lenders have eliminated these (£99-£500 saving). Unavoidable fees: Arrangement fees (though some lenders offer £0), legal fees (£800-£1,500), and stamp duty. Total potential savings: £500-£2,000 by avoiding optional fees. Always compare total cost including all fees using our calculator.

Booking fees (£99-£500) are paid on application to reserve the mortgage product. Valuation fees (£150-£1,500) are paid when the survey is booked, typically 1-2 weeks after application. Arrangement fees (£0-£2,000) are paid at completion or added to the loan amount. Legal fees (£800-£1,500) are paid to your solicitor at completion. Some lenders allow all fees to be added to the mortgage, reducing upfront costs. Budget planning: Expect £500-£1,000 upfront for application and valuation, with remaining £1,500-£3,000 at completion or added to loan. For remortgages, product transfers often have lower fees (£500-£1,000 total) as no valuation or legal work required. Check your mortgage illustration for exact payment timings.