When you're getting a mortgage it can seem that there are just fees, fees and more fees! Add into the equation that you're buying a house at the same time and there are even more fees to think about.
Here's our list of the mortgage fees you might have to pay, and what they mean…
Remember that with some fees you're given the option of paying them upfront or adding them to the mortgage balance. Although some lenders won't charge you interest on the lending fee if you add it to the loan (all heart aren't they!), you need to remember that you'll be repaying any fees you add (plus any interest), over the rest of the mortgage term. Therefore, if you can, it's a good idea to try and pay these charges upfront.
This guide only deals with the fees incurred in taking out a home loan or mortgage and getting out of it. Other costs are payable if you're moving (Stamp Duty, Estate Agents, etc.).
If you continue with the 'revert rate' of your existing deal (the revert rate is usually the standard variable rate), you would not be required to pay an arrangement fee. However, if you choose to redeem this deal and go onto another deal with your existing mortgage lender, fees are payable as per a new deal.
Guide Updated: 14/03/14
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Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
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