Mortgage Fees Explained: Every Cost You Need to Budget For

You've saved the deposit. Found the house. Got the mortgage offer. And then — quietly, line by line — a small constellation of fees starts to appear. Each one is "only" a few hundred pounds. Together they can easily add up to several thousand.

Here's a complete breakdown of every cost you might encounter when getting a mortgage, what each one is for, and which ones you can negotiate or avoid.

Why mortgage fees matter more than most people realise

People focus on the headline mortgage rate. But the total cost of buying a home includes a lot more than monthly repayments. For a typical first-time buyer, the fees, surveys, legal costs and incidentals can run to 2-3% of the property price.

For a £250,000 property, that's £5,000-£7,500 — in addition to your deposit and any stamp duty. Underestimating these costs is one of the most common things that derails first-time buyer plans late in the process. Plan for them now and you'll get to completion day without nasty surprises.

Our first-time buyer guide covers the whole process; this guide focuses on the fees.

Arrangement fees

The arrangement fee (sometimes called "product fee" or "completion fee") is the lender's main charge for setting up your specific mortgage product. Typical range:

• Free / no fee: Some products come with no arrangement fee at all (usually at slightly higher interest rates)
• £500-£999: Common range for mainstream products
• £1,000-£1,999: Higher-fee products usually have lower interest rates
• £2,000+: Sometimes seen on premium or specialist deals

The general trade-off: low fee + higher rate vs. high fee + lower rate. On a small mortgage, the lower-fee option is usually better. On a large mortgage, the lower-rate-higher-fee option often wins. Use our mortgage repayment calculator to compare actual costs over the deal period.

Booking fees

Some lenders charge a separate, smaller booking fee to reserve a specific deal. Typical range £100-£300. Usually non-refundable, even if the mortgage application doesn't proceed.

Not every lender charges this. When they do, it's sometimes paid in addition to an arrangement fee, sometimes instead of one. Always check both when comparing deals — the total of all upfront lender fees is what matters.

Valuation fees

The lender's valuation is a basic check that the property exists, is broadly worth what you're paying, and is suitable security for the loan. It's not a survey — it's much more limited.

Typical range:

• Free: Many lenders include the standard valuation at no charge
• £150-£400: For more thorough valuations or higher-value properties
• £500-£1,000+: For very large or unusual properties

For remortgages, valuation is almost always free. For purchases, it varies by lender — and "free valuation" is a common feature of competitive deals.

Conveyancing and legal fees

Conveyancing is the legal process of transferring ownership of the property. You'll need a solicitor or licensed conveyancer to handle it. This isn't a single fee — it's a bundle of related costs:

• Solicitor's fee: £800-£2,000 for a typical purchase
• Local authority searches: £100-£400 (planning restrictions, road schemes, environmental issues)
• Land Registry fees: £40-£500 depending on property price
• Bank transfer fees: £25-£50
• ID checks: £15-£50
• VAT on the solicitor's fee

For remortgaging, many lenders offer free legals using their preferred conveyancer. For purchases, you usually pay separately.

Stamp duty

Stamp Duty Land Tax (in England and Northern Ireland), Land and Buildings Transaction Tax (Scotland), or Land Transaction Tax (Wales) is the government tax you pay on property purchases.

For first-time buyers in England/Northern Ireland (2026 rates):

• £0 on the first £425,000
• 5% on £425,001-£625,000
• Above £625,000: standard rates with no first-time-buyer relief

For everyone else (standard residential):

• £0 on the first £125,000
• 2% on £125,001-£250,000
• 5% on £250,001-£925,000
• 10% on £925,001-£1,500,000
• 12% above £1,500,000

Add 5% extra if buying a second home or buy-to-let. Add another 2% if you're a non-UK resident. Our stamp duty calculator handles all four nations.

Surveyor fees

A survey is your own check on the property's condition. Separate from (and more thorough than) the lender's valuation. Three main types:

• Mortgage Valuation: Basic, usually done by the lender. £0-£400. Not really a survey.
• HomeBuyer Report (Level 2): Standard mid-level survey. £400-£800. Good for most modern properties.
• Building Survey (Level 3): Detailed, suitable for older or unusual properties. £600-£1,500+.

Skipping a survey is the most common false economy in property buying. A £600 survey that uncovers a £20,000 problem before you commit is the best money you'll ever spend. For anything older than 50 years or with any obvious quirks, get the full Building Survey.

Broker fees

If you use a mortgage broker, they'll charge you in one of three ways:

• Flat fee: Typically £300-£700. Paid by you, usually on application or completion.
• Percentage fee: Usually 0.3-1% of the loan amount. Less common for residential mortgages.
• Lender commission only: The lender pays the broker; you pay nothing. Sometimes called "fee-free".

Always ask upfront how the broker is paid. "Fee-free" brokers can still be whole-of-market and independent, but check — some are restricted to certain lenders. A good broker is usually worth the fee, especially for first-time buyers and anyone with a non-standard situation.

Moving costs

The actual cost of moving your stuff. Often forgotten until the week before completion. Rough ranges:

• Self-move (hire van): £100-£300
• Local removal company: £400-£1,000
• Long-distance move: £800-£2,500
• Full packing service: Add £200-£800

Get three quotes. Book at least four weeks ahead. Try to avoid Fridays and end-of-month dates if you can — they cost more.

Which fees are negotiable?

Some — but not as many as people hope. The main negotiable ones:

• Solicitor fees: Quotes vary widely. Always get three.
• Broker fees: Some brokers will reduce or waive fees, especially for larger mortgages.
• Survey fees: Limited negotiation, but you can sometimes get package deals.
• Removal quotes: Usually some flexibility.

The main non-negotiable ones:

• Lender's arrangement fee: Fixed by the product
• Stamp duty: Fixed by law
• Land Registry fees: Fixed by the Land Registry
• Local authority search fees: Fixed by the council

Adding fees to your mortgage — pros and cons

Most lenders let you add their arrangement fee to the loan rather than paying it upfront. It's tempting because it spares you a lump sum at completion.

The hidden cost: you pay interest on that fee for the life of the mortgage. A £999 arrangement fee on a 25-year mortgage at 5% costs an extra £1,700+ in interest over the term.

Pay it upfront if you possibly can. If cash is genuinely tight, adding it makes the property purchase possible — but factor the long-term cost into your total comparison.

How to budget properly for all the costs

A practical worked budget for a £250,000 property purchase (first-time buyer, England):

• Deposit (10%): £25,000
• Stamp duty: £0 (first-time buyer relief)
• Arrangement fee: £999
• Valuation fee: £0 (free with most lenders)
• Solicitor fees + disbursements: £1,500
• Land Registry: £150
• HomeBuyer Report survey: £600
• Broker fee: £500
• Removal costs: £700
• Buildings insurance (first year): £250
• Connection fees and bills setup: £200

Total above deposit: ~£4,900

So you'd need around £30,000 in total cash to complete on a £250,000 property as a first-time buyer with a 10% deposit. The deposit alone isn't enough.

Build up the extra in addition to your deposit before you start house-hunting. Our savings goal calculator can help you plan the timeline.

Frequently asked questions