Along with the interest rate charged, the fees associated with a mortgage determine the competitiveness of the product.
Listed below are some of the most common fees that are associated with mortgages.
Arrangement fees: Lenders will sometimes charge you a fee for arranging your mortgage. This is usually a one off fee which can usually be added to the mortgage or paid upfront.
Arrangement fees vary widely, but usually fall within the range of £200 to £500.
Booking fees: Lenders may charge booking fees, which are normally paid upfront with the mortgage application; these compulsory fees ensure that you will get the specific product you are applying for.
Booking fees also usually fall within the range of £2009 to £500.
Legal fees: Solicitor’s fees for the legal work vary, and it can be worth shopping around for the best deal.
However, your solicitor’s bill will include various additional parts. The largest part would generally be stamp duty, which is literally a tax on the stamping of documents registering the property in your name.
This is charged according to the following scale: Up to £120,000: nil £ 120,001 to £250,000 1% £ 250,001 to £500,000 3% More than £500,000 4% You will also have to pay a small additional land registry fee. The majority of the fees associated with the legal work are paid on completion.
Also see:
Early repayment charges
Valuation fees
Higher lending charges
As professional mortgage brokers, with access to over 100 lenders, we can source from the whole of the market to help you find the most competitive quotes considering your situation and individual preferences.