While all the mortgage or loan related fee and costs will be set out clearly in the keyfacts document about the mortgage document that the lender or mortgage broker gives you, there'll be other costs you'll need to pay for. These include stamp duty, real estate agency fees and the lawyers' fees.
Often you can add certain fees charged by the broker or lender to the mortgage and pay them back over time with your monthly payments. But if you do this, remember that they will cost a lot more in the long run because of the interest that you will have to pay for taking the option to pay in the long run. If you want to do this, ask your lender or broker to give you a keyfacts document about this mortgage on this basis and one without the fees added, so you can compare what you'll pay.
| All mortgage-related fees will be set out in the keyfacts documents. They may include any of the following: | ||
| Fee or Charge | What is it charged for? | How much can it be |
| "Mortgage advisor or broker fee (if you use one) | For arranging the mortgage or giving you advice. | This depends on the broker, but if they charge (some don't) they must tell you in the keyfacts about our mortgage services document. |
| Mortgage or Loan booking fee or arrangement fee | A fee charged by the mortgage lender, usually to reserve your mortgage funds or to cover the distribution/administration costs of processing your mortgage loan. For some lenders, the fee may also be linked to special deals with a lower initial interest-rate. | This varies, but £200-£700 may be a typical amount. Where the fee is linked to a special deal it may be even higher, £2,000-£3,000 or more. These large fees can significantly increase the overall cost, particularly if you add the fee to the loan – and so pay interest on it. Use the total cost information in section 5 of the keyfacts about this mortgage document to find out the overall cost. |
| Valuation fee | This is the fee a mortgage lender may charge for a valuation of the property to assess whether it is appropriate security for the mortgage. | This varies from lender to lender, and on the value of the property. |
| Higher lending charge | If you're borrowing a high percentage of the value of the property, the lender may charge a fee to take out insurance cover. This protects them in case you can't pay back your loan and they have to sell your house at a loss. | This will depend on how much you borrow, and how much you're contributing as a deposit. |
| Fee for making your own buildings insurance arrangements | A fee charged by a lender for the administration costs of checking there is sufficient buildings insurance cover if you do not insure your property through the lender. | Typically £25 but may be payable yearly or each time you change insurer. |
| Telegraphic transfer fee | A possible charge from your lender if you need them to transfer the mortgage funds to your solicitor on the same day. | Typically £40-£50. |
| Re-inspection fee | Sometimes a lender will need to re-inspect the property after the original valuation, usually to check if you've made agreed repairs. | Typically £50-£100. |
| Early repayment charge | If you repay all or part of your mortgage earlier than the agreed term. | This may not always apply, but section 10 of the keyfacts about this mortgage document will give an explanation of when it applies and cash examples. Check the terms and conditions of the mortgage for full details. |
| Early repayment charge | If you repay all or part of your mortgage earlier than the agreed term. | This may not always apply, but section 10 of the keyfacts about this mortgage document will give an explanation of when it applies and cash examples. Check the terms and conditions of the mortgage for full details. |
| Fees to repay the mortgage (known as exit administration fees) | A fee to your lender when you repay your mortgage, even if you are not repaying it early. | Typically £75-£300 (plus any early repayment charge, if applicable). |
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