We set out the principal fees below.  There can be other smaller fees. In deciding which lender you wish to borrow from, make you sure you understand all the applicable fees.  These can add up, even if the lender does allow you to add fees to the amount borrowed.

Arrangement fee

The lender takes this to arrange the mortgage.  Some lenders will add the fee to your mortgage. It can range from £0 to £2000.

Booking fee

The lender may charge this on application for a mortgage.  They may not refund the fee if your mortgage falls through.  They may also add it to the arrangement fee and thus to the amount lent. It typically costs £99-£250.

Valuation fee

The mortgage provider will require that your property is valued.  Lenders lend in accordance with their internal rules on what is known as Loan to Value.  This is the amount they are prepared to lend against the property you wish to buy.   Some lenders might waive this fee on certain mortgage deals.

You may be able to amalgamate this into your own survey, if the surveyor is approved by the lender.  Remember the bank’s element of the survey is only concerned with value.  It does not address the potential cost of repairs or problems with the property.   Its best to liaise with the mortgage lender so as to keep survey costs to a minimum. A valuation survey can cost anything from a few hundred pounds to £2,000 depending on the size and value of the property. Check our comparison tool to check the price.

Higher lending charge

A lender may seek to charge this fee if you only have a small deposit.  It’s designed to pay for insurance for the lender in the event that you can’t satisfy the mortgage.  It typically costs around 1.5% of the amount being borrowed.