Know the costs
What Fees Should You Expect When You Get a Mortgage?
Broker fees are only one part of the cost of a mortgage. To make an informed decision you need to see every fee side by side, because the cheapest interest rate is not always the best mortgage deal once fees are added.
Product fee or arrangement fee
Many lenders charge a product fee for the mortgage deal itself. You can usually pay it upfront or add it to the mortgage balance, but adding it means paying interest on it for the whole mortgage term.
Valuation fees
The lender needs to check the property value before it lends. Some deals include a free valuation, while others charge a valuation fee based on the price of the property.
Legal fees
You need a solicitor or conveyancer for a purchase. On a remortgage, many lenders offer free legal work as part of the deal.
Early repayment charge
If you leave a fixed rate or tracker deal early, the lender may charge an early repayment charge, usually a percentage of the outstanding mortgage balance.
Exit fee
Some lenders charge an administration or exit fee when you repay the mortgage in full. Your mortgage terms and mortgage agreement show whether this applies.
Broker fees
Some mortgage advisors charge fees for their service, either upfront or later in the mortgage process. Our advice is fee free, so this is one cost you will not pay with us.
A good mortgage advisor adds all of these up and compares the total cost over the deal period, not just the monthly repayments. That is how you find the right mortgage for your individual circumstances and save money over the long run.
Is it worth paying mortgage advisor fees?
For some borrowers with very complex cases, paying for specialist advice can be worth it. For most people buying a home, moving or remortgaging, you can get independent advice and access to the whole market without paying a broker fee at all. In the worst case scenario, a poorly chosen deal can cost far more than any fee, so the quality of the advice matters most. Look for a regulated mortgage advisor who explains every cost clearly and puts it in writing.
Can I use an online mortgage calculator instead?
An online mortgage calculator is a great first step to estimate your monthly mortgage repayments, and you can use ours on our mortgage repayment calculator page. It cannot check lender criteria or your credit file, though, which is where a mortgage advisor makes the difference in the mortgage application.
Other lender costs to look out for
Some lenders charge a booking fee to reserve a fixed rate, and some charge a small telegraphic transfer fee to send the mortgage money to your solicitor. Early repayment charges are usually between 1% and 5% of the amount you repay, often reducing each year of the deal. None of these are paid to us, and we will always point them out before you choose a deal.
Who is fee free mortgage advice best for?
Fee free advice suits most people buying a home, moving or remortgaging, including first time buyers, home movers, landlords and self employed borrowers. Because we search the whole market rather than a short panel of lenders, going fee free does not mean fewer options. If your case needs a specialist lender because of adverse credit, we will tell you that upfront.
