Mortgage Fees

Mortgage Fees

While your focus is probably on saving for the deposit you will need to buy your house, you shouldn’t ignore the other costs you will need to pay, such as arrangement fees, survey fees, and administration fees.


Everybody is focused on saving for a deposit when planning to buy a property, but what about the other costs involved in a house purchases?
Heres a guide to most of the common ones:


  • Mortgage Arrangement Fees:

    This can be up to £3,000, but are typically between £1,000 to £2,000. You will usually have the option of this being added to your loan.

  • Mortgage Booking Fee:

    Some lenders charge you this fee just for applying with them. It is typically between £50-£300 and cannot be refunded.

  • Valuation Fee:

    This is the cost of valuing the house you are buying so the lender can work out what they will actually lend you. If they value the property at less than what you have offered the seller then you either have to renegotiate, pull out, or make up the difference from your own resources. A valuation is just that, it will not give you detailed information about the real condition of the house. If it is a much older property, then you might consider a much more expensive survey so you are not faced with serious costs to repair it. Standard Valuation costs about £150 and a in depth survey can cost up to £1000.

    Be aware. that even if you have a full survey, the lender may still insist on their own valuation as well.

  • CHAPS:

    Clearing House Automated Payment System. Yes, unbelievably you will be charged about £50 for transferring the funds from the lender to your solicitor.

  • Mortgage Administration Fee:

    The lender will charge you for administration of your account, this could be around £300.

  • Broker Fee:

    Using a broker will give you the best chance of getting the best deal for your circumstances. They will (or should) take the time to give you actual advice; unlike a bank or high street lender who do not advise your decisions-with the very few exceptions. A broker can cost anywhere between £250 and £500 depending on the difficulty of the case.

  • Legal Fees:

    Your own legal fees can be up to £1800 and include things such as your own solicitors costs and Land Registry.

  • Stamp Duty:

    If you are buying your first home, and it is less than £300k you are exempt from paying stamp duty. Otherwise:

  • Tax Band

    Normal Rate

    Additional Property

    less than 125k

    0%

    3%*

    £125k to £250k

    2%

    5%

    £250k to £925k

    5%

    8%

    £925k to £1.5m

    10%

    13%

    £1.5m

    12%

    15%

  • There are the more hidden costs such as the physical cost of moving and the immediate costs of moving in and buying new furniture, carpets, curtains, and generally making your house your home.

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