Remortgaging

Fees and costs

While all the mortgage-related costs will be set out clearly in the Key Facts about this mortgage document that the lender or mortgage broker gives you, there'll be other costs you'll need to budget for. These include stamp duty, estate agency fees and lawyers' fees.

Often you can add certain fees charged by the broker or lender to the mortgage and pay them back over time with your monthly payments. But if you do this, remember that they will cost a lot more in the long run because of the interest.

Mortgage costs

Fee or Charge	What's it for?	How Much?
Mortgage Broker Fee (if you use one)	For arranging the mortgage or giving you advice.	This depends on the broker, but if they charge (some don't) they must tell you in the Key Facts about our mortgage services document.
Mortgage booking fee or arrangement fee	Lenders usually make a charge to reserve your mortgage funds for you or to cover the administration costs of processing your mortgage.	This varies, but £100-£500 is typical.
Valuation fee	The fee a lender charges for a valuation of the property to assess whether it is appropriate security for the mortgage.	This varies from lender to lender, and on the value of the property.
Higher lending charge	If you're borrowing a high percentage of the value of the property, the lender may charge a fee to take out insurance cover. This protects them in case you can't pay back your loan and they have to sell your house at a loss.	This will depend on how much you borrow, and how much you're contributing as a deposit.
Fee for making your own buildings insurance arrangements	A fee charged by a lender for the administration costs of checking there is sufficient buildings insurance cover if you do not insure your property through the lender.	Typically £25 but may be payable yearly or each time you change insurer.
Telegraphic transfer fee	A possible charge from your lender if you need them to transfer the mortgage funds to your solicitor on the same day.	Typically £40-£50.
Re-inspection fee	Sometimes a lender will need to re-inspect the property after the original valuation, usually to check if you've made agreed repairs.	Typically £50-£100.
Early repayment charge	If you repay all or part of your mortgage earlier than the agreed term.	This may not always apply, but section 10 of the Key Facts about this mortgage document will give an explanation of when it applies and cash examples. Check the terms and conditions of the mortgage for full details.
Fees to repay the mortgage	A fee to your lender when you repay your mortgage, even if you are not repaying it early.	Typically £75-£300 (plus any early repayment charge, if applicable).

General moving costs

These won't be listed in the Key Facts documents.

Fee or charge	What's it for?	How much?
Estate agency fee	Marketing and selling your home.	Typically 1-3% of the selling price; ask for a quote and shop around.
Stamp duty land tax (known simply as stamp duty)	Tax payable to the government when you buy a home.Make sure this is in your budget if it applies to you - the cost can be high. It is the buyer who pays stamp duty, not the seller.	Up to £125,000 - 0% £125,000 to £250,000 - 1% £250,000 or over - 1%
Legal fees	Paid to your solicitor to represent you, negotiate for you, and carry out the necessary searches, land registry and so on. This is also known as conveyancing.	This will vary according to the firm. Budget for at least £400 and possibly more. Ask for quotes.
Survey fee	Your lender will carry out a valuation visit (see above), but this is only a very basic inspection. You may want a Homebuyers report or a structural survey if you want a detailed report on the condition of the property.	This will vary according to the surveyor, the size of property and the type of report you need. Ask for quotes.
Removal costs	Moving all your belongings from your old home to your new one.	Costs will vary, although you can save money by packing up everything yourself. Ask for quotes.

In Summary

Download PDF Version of this Guide	Contents
Contact Us for a Mortgage Quote	Mortgage Research

 

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