What fees do I pay on a mortgage?
Here's all you need to know about mortgage fees.
Last updated on
May 14, 2026 9:36
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Habito is a mortgage broker, not a lender. We compare mortgage deals from a panel of lenders and, if you choose to proceed, we can give you regulated mortgage advice.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There are five fees you could face when you take out a mortgage. We’ve covered what they are, plus other costs to expect when you’re buying a property. The costs below are typical ranges. The exact fees you’ll pay depend on the lender, the mortgage deal you choose, and your personal circumstances.
You pay this to the lender for organising your mortgage - it’s like an admin fee.
Not all deals come with an arrangement fee, which is also called a product fee. Deals that have a low fee, or no fee, tend to have a higher interest rate, though, so it can be a bit of a trade-off.
Our mortgage comparison shows you the total cost of each mortgage over the initial period of each deal so you can easily see which ones cost less overall. A high fee/lower rate tends to work out better if you have a large mortgage, but it’s always worth doing a full check.
Your broker should factor in these fees to determine the total cost of your mortgage, beyond just the interest rate.
You can pay an arrangement fee upfront, or get it added to your mortgage. Adding fees to your mortgage means you’ll pay interest on them over the full term of the loan, which can significantly increase the total amount you repay overall. If you pay it upfront and your property purchase falls through, you may lose that money. To get around this, some people get the fee added to the mortgage and then overpay by that amount as soon as they can after they’ve bought their home, to avoid paying the extra interest.
Before approving your mortgage, your lender will want to get a surveyor to check your property’s value. This is to make sure it’s a solid investment to lend against – meaning that if you stop paying your mortgage, the lender could sell the property and get back at least the same amount it 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.
Your lender may 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 £1,000 or more. 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.
Some lenders throw in a free valuation as a perk of the mortgage deal, but it’s always worth checking the overall cost before you decide to apply.
In Scotland, this works differently – the seller is legally obliged to provide a Home Report, which includes a valuation.
Not all lenders charge this, and some 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 probably won’t get it back.
This is another admin fee and it covers the cost of maintaining your mortgage account and closing it, when the time comes. With some deals, you pay it at the start. With others, you pay it at the end, when you close your account.
Some mortgages charge early repayment fees if you leave your deal before the end of the initial rate period. These charges can be significant, so it’s important to factor them into the total cost.
Some brokers charge you a lump sum for their advice (usually £500 or so). Others, like Habito, don’t charge you directly. Instead, we’re usually paid a commission by the lender if you take out a mortgage through us. This doesn’t change the deal you’re offered.
Find out what deals you might be able to get by chatting to one of our brokers for free.
Apart from the fees you pay to secure the mortgage deal itself, you’ll face other costs when buying a property.
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. Our stamp duty calculator makes it easy for you to understand how much you need to pay.
You’ll have to pay a fee to your solicitor or conveyancer for their legal service in helping you buy your property. How much you pay depends on the property price, whether it’s a remortgage or purchase, and whether it’s freehold or leasehold.
Conveyancers tend to charge less than solicitors.
Your solicitor or conveyancer will also pay the Land Registry fee to register your property on your behalf. This costs from £20 to £1,105.
On average, expect to pay £1,000–£2,500 for your legal work (including property searches and the checking and exchange of contracts).
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. It’s usually £25–£30.
These are the most common types of costs you’ll encounter when buying a home. Mortgage fees can vary hugely depending on the deal and whether you’re paying it upfront or not.
So it can help to chat with an expert who can search the available deals for you and check the total costs.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The lowdown on the legal stuff - how it works, what it’s going to cost you, how long it will take, and more.
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