Mortgage calculations - UK mortgage fees

There are costs involved in switching mortgage and really you should only be considering doing this if you stand to save money overall. 

The typical fees associated with switching mortgage are as follows.

Solicitors legal fee (Remortgage/Purchase)     £300 - 500.

Mortgage lender’s Arrangement fee  £400 - 500.

Valuation fee (paid to mortgage lender)  £250 (for £125,000 property).

Mortgage broker fee  1% of loan.

You can keep your costs down by avoiding paying a mortgage broker fee.  On a £100,000 mortgage a typical broker fee would cost you an extra £1,000.  A no fee broker like L&C can offer you the same level of expertise as you would find at a fee-charging mortgage broker  (see free mortgage advice: our no broker fee policy)

Many lenders now offer mortgages with fees assistance. Such as offering free legal, valuation and arrangement fees.  Whilst fee-free mortgages are attractive, they shouldn’t automatically be assumed as the cheapest option.  Occasionally, for example, it can work out cheaper to take a mortgage where you pay the fees upfront but save in the long term. Your mortgage adviser can help weigh all the costs up by looking at the whole picture.

Also see:

Mortgages made easy
Remortgaging made easy
How much will I save by switching mortgage?
Best UK mortgage rates
Best mortgage deal - finding the best mortgages in the UK
Mortgage calculators online
Best buy mortgages