What does it cost to get a mortgage?

5 min read

Mortgages can have a lot of moving parts and make you feel a bit lost – kind of like you’re driving around without GPS. And that’s why we’re here to break it all down and help you navigate all the costs – the obvious, and the hidden ones!

Deciding which mortgage lender to go with is just one of the costs associated with actually getting the mortgage. 

There are other fees involved in getting a mortgage that it’s useful to know about so you can budget for them. 

Below is a list of fees you might be charged as you take out your mortgage:

  • Arrangement fee: The fee you pay for the lender to set up your mortgage. This can cost anywhere between £0 and £2,000. The average is about £1,000. 
  • Booking fee: Paid up front when you apply for a mortgage deal. It’s often non-refundable even if your mortgage falls through. Usually this costs around £99 but can be up to £250.  
  • Valuation fee: Covers the cost of the survey of the property arranged by the mortgage lender. Some lenders will waive the fee and others charge up to £1,500.
  • Legal fees: Pays a solicitor to do the legal paperwork for you. This is often charged as a percentage of the cost of the mortgage.
  • Higher lending fees: You’ll only have to pay a higher lending fee if your mortgage is particularly large in proportion to the purchase price. 
  • CHAPS fee: Pays for your mortgage lender to transfer money to your solicitor. This fee is usually around £25-£50 and non-refundable even if the deal is not completed.
  • Financial advice fee: When arranging a mortgage, it’s common to use a financial adviser who will usually charge a fee for their service.
  • Own building insurance fee: Your lender might charge you a fee to check if you’ve taken out building insurance from a provider who isn’t them. This fee is usually between £25 and £50.