There are a few fees that will be payable when arranging a mortgage. These will need to be taken into consideration when you are budgeting for your purchase or remortgage.

Reservation fee

This fee is payable to the mortgage lender that your application is submitted with, this fee will not be refunded if you decide to pull away from the mortgage

Arrangement fee

An arrangement fee can either be paid upfront or you may have the option to add this fee to your mortgage, the amount of this fee can vary from lender to lender depending on the purchase price of the property as it is usually a percentage of this.

It is important to weigh up all of your options when deciding on a mortgage deal, it could be more beneficial if you choose a slightly more expensive deal if your arrangement fee is quite high.

Valuation fee

Once your mortgage application is submitted, the lender may request a valuation fee from you, this is when the mortgage provider will send someone from their surveying team to come out and value your home. The cost can vary and some deals also come with free valuations.

Legal fees

This payment is made when your house purchase/remortgage has completed. Search fees will be paid early on in the solicitor process but the outstanding balance will be paid on completion, if stamp duty is payable, this is also when that payment is made. There may be options for free legal fees if you decide to use the lender's own solicitors.

Additional fees

• Advice fees - if you see a mortgage broker for mortgage advice, a fee may be payable for the service they have provided in finding and submitting your mortgage
• CHAPS fee - this funds the lender's costs of transferring your house funds to the solicitor

Fees during your mortgage

• Early repayment charge - this is payable if you overpay on your mortgage above the lender's limit or remortgage during your fixed term
• Exit fee - when you finish your mortgage you may be charged this fee or if you decide to close your mortgage account by switching lenders due to remortgage
• Late fee - if you miss your monthly repayment or pay late, you will be charged. Some lenders may offer a grace period when you can make the payment and not be charged, however, this will have a negative impact on your credit file

If you are looking for a mortgage contact us on 0151 662 0188 or email [email protected]