Mortgage Costs & Fees Arranging any type of finance comes with fees and costs.
The following are examples to consider, that may or may not apply to you, depending on whether you are buying a new property or remortgaging an existing one.
This is payable to the Government, typically when you purchase a property.
This is payable to your lawyer for the conveyancing of the mortgage. Fees can vary and a purchase is normally more than a remortgage.
A fee to register your property ownership with the Government.
Payable to your agent if you are selling through one. Typically this is a percentage of the final sale price.
Typically payable 50% upfront and 50% on the day to the firm. Fees vary depending on the distances to cover, and amount, value and type of contents - ideally get quotations from three different firms before committing.
This is a valuation for the lender (not for you). This is to satisfy them that a professional "valuer" believes that the property is worth (rental and /or purchase) what you think it is.
Property valuation / survey
This is for you rather than the lender, and normally is associated with a purchase. It can comprise a full structural survey or a lighter touch homebuyer's survey.
Mortgage lender's arrangement fee
This is payable to the mortgage lender, upfront or can be added to the loan. It can vary a lot, and is normally associated with products that offer special discounts or rates. It was introduced to cover the increasing costs of underwriting your application.
Early repayment charges
If you repay your loan in full before the end of its overall term you can expect there to be at least an administration charge by the lender. However, if you part repay more than the pre-agreed level during a specified term, then a percentage charge may apply and can be relatively large.
Higher lending charge
Where high loan-to-value lending happens, an insurance policy is taken out by the lender to protect itself should you default and property values decline. This cost may be passed by the lender.