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Mortgage
Guide
Click for Full Contents
The Costs of a Mortgage in the UK
Open Costs of Getting a Mortgage vs Hidden Costs
There are obviously going to be some fees at the beginning of a mortgage. These fees and their descriptions vary widely between mortgage lenders, and there are sometimes a few charges you don't expect.
Bear in mind that not all lenders charge all of these fees, but many do. Here is our list of the fees you might have to pay before you even move in:
-
Arrangement, Booking or Reservation Fees
-
Higher
Lending Charges (HLC)
-
Valuation
Fee
-
Homebuyer's
Report / Survey Costs
- Legal Costs and Telegraphic Transfer Fee
Set up Fees / Arrangement Fees, Booking or Reservation Fees
Arrangement fees, booking fees and reservation fees are all the same thing, and are charged by virtually all lenders when they allocate the money for your loan, guaranteeing your mortgage deal.
It is hard to indicate typical costs for these as they vary depending on the mortgage lenders. Some lenders may be running offers where these costs have been discounted.
The current average is nearly £800.
Most deals now come with a fee of at least £500, and although cheaper ones are available, they may not be competitive in other ways.
Some lenders ask as much as £2000 ! (Sorry. Only £1,999)
Read On
-
Higher
Lending Charges (HLC)
-
Valuation
Fee
-
Homebuyer's
Report / Survey Costs
- Legal Costs and Telegraphic Transfer Fee
Higher Lending Charges
Higher Lending Charges (HLC) are applied by some lenders to borrowers seeking a loan of more than 90% of the value of their property. They can be very pricey indeed, so make sure you understand if they will apply to you or not.
This can also be called an indemnity guarantee, additional security fee or mortgage advance premium.
Read more about Higher Lending Fees
See How higher-lending fees are worked out.
See How to avoid paying a higher-lending fee
See Lenders that don't apply a higher-lending charge
Read On
Valuation Fee
If
you are buying a new property, you may only need your lender's
mortgage valuation report, but even this can have
a fee associated with it. Read more about
Valuation
and Survey Costs
Read On
Homebuyer's Report / Survey Costs
If you are buying an older property, you will certainly want at least a Homebuyers Report (a basic survey), or even a full structural survey for very old or run-down properties. Read more on homebuying valuations and surveys
Read On
Legal costs
The legal process of buying a property is called conveyancing. This could cost you about £350 plus VAT for a £100,000 purchase
Add to this the legal Search fees (c £100), Land Registry fees (c £100)
You will also usually have to pay the legal and telegraphic transfer costs directly to your solicitor, unless your bank or building society has arranged a solicitor for you. These depend on the purchase price ie the amount of money to transfer. For a £200,000 sale it would be about £25.
Read more about the legal costs of mortgages and home buying
To read more on this subject please see the list below or your mortgage guide or your home buying guide
Read enough? Just want a quote? To get your best mortgage quote quickly and easily we can put you in contact with a recommended mortgage adviser. It's free, completely confidential and there's no obligation at all. Simply fill out the form below
Read On
The Costs of a Mortgage in the UK
General costs of getting a mortgage
Hidden / True costs of home buying and mortgages
Charges at the start of a mortgage
Arrears Fees / Costs of falling behind payments
Fees for changing your mortgage
Final Payments / Mortgage Exit Fees
Why The Mortgage Lenders are So Greedy
Read On / Mortgage Guide
How
to Choose your Mortgage
Types of Mortgage
Remortgages
Where to Find Your Mortgage
Getting a Mortgage in Principle
Read On
Guide to Buying a Home in the UK
Guide to UK Home and Mortgage Insurance
Browse over 200 Free Mortgage TipsYour Complete Guide to UK Mortgages Find Out How to Win the Race to Buy Your Home - Home Buyers Guide Learn How to Save ££s by Remortgaging Read the Insider Info on Home Insurance Site Help |
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