What fees do I pay on a mortgage?

Stamp duty

Stamp Duty Land Tax (aka SDLT or just “stamp duty”) is a tax you have to pay when you buy any UK property or land worth £125,000 and up. First time buyers get some relief on stamp duty. Our stamp duty calculator makes it easy for you to understand how much you need to pay.

Arrangement fee

You pay this to the lender for organising the mortgage, it’s like an admin fee. It’s typically around £999. For very large mortgages this can stretch to £1,499–£1,999. Your broker should factor in these fees to determine the true cost of your mortgage, beyond just the interest rate.

Booking fees

Typically £100–£250, though some lenders don’t charge one, or incorporate it into the arrangement fee. Typically, you pay this to the lender when you submit your mortgage application to secure the rate you want. It’s non-refundable so if you don’t go ahead with that mortgage, you’re likely not to get it back.

The fees you pay your solicitor or conveyancer. How much you pay depends on the property price, whether it’s a remortgage or purchase, and whether it’s freehold or leasehold. Conveyancers also tend to charge less than solicitors. On average, expect to pay £1,000–£1,500 for legal work (including property searches and the checking and exchange of contracts).

Valuation fees

Before they approve your mortgage, the lender will hire a surveyor to inspect the property and make sure it’s a solid investment to lend against – meaning that if you stop paying your mortgage, they could sell the property and get back at least the same amount they lent you.

You pay the valuation fee to the lender when you submit your mortgage application. Sometimes, there’s also an admin fee, covering the costs of arranging the valuation. The amount will vary based on the price of the house, but it’s usually less than £400.

Some lenders give you the option to upgrade your valuation to include a homebuyer or building survey – these look at your property in more detail, but may end up bringing the total cost to around £1,000.

Some people also get their own independent valuation alongside their lender’s one. It’s not compulsory, but if you do, expect to pay more.

Telegraphic transfer (CHAPS) fee

Usually £25–£30. This is an admin fee, charged by the bank when you transfer large amounts of money – like between the lender and the solicitor, and from your solicitor to the seller’s.

Broker fees

Some brokers charge you a lump sum (usually £500 or so), others a commission based on the value of your mortgage. Some brokers are free and won’t charge you a penny.

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