Open Nav

Your Expert Guide to Remortgaging

Whole of Market Mortgage Advice Right at Your Fingertips

Read our articles for a wealth of mortgage advice straight from our experts. Wherever you are on the property ladder, we understand that you’ll have plenty of questions about how the mortgage process works and which loan is right for your circumstances right now. For all your questions, big and small, refer to our comprehensive mortgage advice to get the information you’re looking for.

Can’t see what you’re looking for? Browse our Mortgage Advice Hub or contact our mortgage advisors. They’ll be more than happy to assist.

Posted On: January 26, 2022
Updated On: August 8, 2022

Fees Involved In Arranging A Mortgage

It can be easy to assume that a mortgage is just about the monthly repayments, however, there are plenty of other costs and fees to consider. We’re listing all the fees involved in arranging a mortgage that are often overlooked.

Complete list of mortgage-related fees:

Booking fee

Also known as an ‘application’ or ‘reservation’ fee, a booking fee is taken while the mortgage is being set-up. This is usually around £99. Some lenders don’t charge it at all. This fee can be refunded if you don’t end up taking the mortgage out. If you go through a mortgage broker, this will be charged by them.

Valuation fees

A mortgage lender will need to check that the price you’re paying for the property matches up to the actual value. They will only offer you a loan based on a professional, impartial valuation.

Redemption charges

Redemption fees is another term for ‘early repayment’. Many lenders will charge a fee should you wish to pay more than your assigned amount in a given month, or if you want to pay off your entire mortgage earlier than planned, there may be a redemption fee attached to this. If you want to have more flexibility with how you pay back your mortgage, you should ask your mortgage advisor about your options.

Building insurance

Many mortgage lenders will insist that you acquire building insurance. This will provide some protection against the value of the property in the event of damage or destruction from a fire, flood or break-in.

Arrangement fee

This is what you pay to your lender to set-up the mortgage.

Missed payments

If you miss any of your mortgage payments you may have to pay a late fee. There will usually be a grace period, but if you go over that then you will be expected to pay. This should be made clear in your mortgage terms.

Other payments:

There will be other payments related to purchasing property, such as estate agent fees, conveyancing fees and contents insurance.

Will any of the costs be hidden?

As of March 2016, mortgage lenders have included all their mortgage fees as part of the annual interest calculation.

Often the best way to approach getting a mortgage is to speak to a mortgage advisor or broker. They will make sure that all your costs are factored into your budget. They will also bear these extra costs in mind when calculating your mortgage affordability. Speak to Agentis today to arrange your free initial consultation. We will only charge a booking fee if you choose a mortgage through us.