Mortgage Costs and Fees Explained

This guide provides general information and is not a substitute for personalised mortgage, tax or legal advice.

Written and reviewed by the Highhouse Money mortgage team · Last reviewed: 25 August 2026

The interest rate is usually the headline figure when comparing mortgages, but it is rarely the whole cost. Arrangement fees, valuation fees, legal costs and — depending on how you arrange your mortgage — broker fees can all add up, and some can be added to the loan rather than paid upfront, which affects the total amount you repay.

This guide sets out the main costs you are likely to encounter, in plain terms, so you can budget accurately and compare deals on a like-for-like basis rather than on the interest rate alone.

Costs to budget for and questions to ask

What is the lender's arrangement or product fee, and can it be paid upfront or added to the loan?
Is a valuation fee payable, and does it cover more than the lender's minimum requirements?
Do I need a separate survey beyond the mortgage valuation?
What will legal fees cost for my purchase or remortgage?
Does my chosen broker charge a fee, and if so, when is it payable?
What early repayment charges apply, and for how long?
Have I budgeted for buildings insurance and any ground rent or service charges?
Have I compared deals on overall cost, not just the interest rate?

Lender fees: arrangement and product fees

Many mortgage products carry an arrangement (or product) fee charged by the lender for setting up that specific deal. Fees vary considerably between products and lenders, and some deals have no fee at all, often in exchange for a slightly higher interest rate.

You can usually choose to pay this fee upfront or add it to the mortgage balance. Adding it to the loan avoids an upfront cost but means paying interest on the fee for the life of the deal, so it is worth working out which option costs less overall for your loan size.

Valuation fees and surveys

Lenders require a valuation to satisfy themselves the property is adequate security for the loan. Some lenders charge a valuation fee, scaled to the property value, while others offer a free valuation as part of the product. Either way, this valuation is carried out for the lender, not for you.

Because a mortgage valuation is not a detailed inspection of the property's condition, many buyers commission a separate survey — ranging from a condition report to a full structural survey — at their own cost, particularly for older or unusual properties.

Legal and conveyancing fees

A solicitor or licensed conveyancer handles the legal side of a purchase, sale or remortgage, including local searches, title checks and registering the mortgage. Fees vary by firm and by the complexity of the transaction, and purchases typically also involve disbursements such as search fees and Land Registry fees.

Some remortgage products include a free legal service for the straightforward transfer of a mortgage charge between lenders, which can reduce or remove this cost when switching lenders rather than buying a new property.

Broker fees

How a broker is paid varies across the market. Some charge the client a fee, some are remunerated only through commission paid by the lender, and some combine the two. It is reasonable — and sensible — to ask any broker upfront how they are paid before you proceed.

Highhouse Money is a whole-of-market broker. Where a fee applies to your case, we will confirm the amount clearly in advance, and it is only ever payable on completion of your mortgage — you pay nothing on application.

Early repayment charges

If you leave a mortgage deal early — by repaying it, remortgaging, or overpaying beyond an allowance — many products charge an early repayment charge (ERC), usually a percentage of the amount repaid early that can reduce each year of the deal. This is separate from arrangement or legal fees and is set out in your mortgage offer.

ERCs are one reason it pays to think about how long you are likely to keep a mortgage deal before choosing its length, and to time any remortgage around when the ERC period ends where possible.

Comparing costs across products

Cost	Who charges it	Can it be avoided or reduced?
Arrangement/product fee	Lender	Some fee-free products exist, often at a higher rate
Valuation fee	Lender (or its panel)	Some lenders include this free
Survey	Independent surveyor	Optional beyond the lender's valuation
Legal fees	Solicitor/conveyancer	Some remortgage deals include free legal work
Broker fee	Broker, where applicable	Ask upfront; commission-only options exist
Early repayment charge	Lender	Avoided by not leaving the deal early

When comparing two mortgage deals, it helps to add up all applicable fees alongside the interest cost over the period you expect to keep the deal, rather than comparing interest rates in isolation.

Ongoing costs beyond the mortgage

Buildings insurance is generally a lender requirement and an ongoing cost throughout the mortgage term. Depending on the property, there may also be service charges or ground rent, and many borrowers choose to arrange life insurance or income protection to protect their ability to keep up mortgage payments.

Your home may be repossessed if you do not keep up repayments on your mortgage.

What lenders may assess

Whether the arrangement fee is added to the loan or paid upfront, and how that affects affordability
The property value from its own valuation, which may differ from a purchase price or estimate
Total borrowing including any fees added to the loan
Ongoing costs such as insurance where relevant to affordability assessments

Every lender sets its own criteria, which change regularly. The points above are common themes, not a guarantee of how any individual lender will treat an application.

Frequently asked questions

What fees are typically involved in getting a mortgage?

Common costs include a product or arrangement fee charged by the lender, a valuation fee, legal (conveyancing) fees, and sometimes a broker fee, alongside one-off costs like a mortgage deposit and, for purchases, Stamp Duty Land Tax where applicable. Not every fee applies to every mortgage, and some can be added to the loan rather than paid upfront.

What is an arrangement fee?

Also called a product fee, this is charged by the lender for setting up a specific mortgage product. It can often be paid upfront or added to the loan; adding it to the loan means paying interest on it over the mortgage term, so it is worth comparing the total cost either way.

Do I always need to pay for a valuation?

Most lenders require a valuation to confirm the property is adequate security for the loan, and some charge a fee for this while others include it in the deal at no extra cost. A mortgage valuation is for the lender's purposes and is not the same as a full structural survey, which you may want to commission separately.

What are legal or conveyancing fees?

These cover the solicitor or licensed conveyancer's work in handling the legal side of buying, selling or remortgaging a property, including searches and registering the mortgage. Some mortgage deals include a free legal service for remortgages; for purchases, legal fees are usually a separate cost to budget for.

How do broker fees work?

Broker fee models vary. Some brokers charge a fee for arranging the mortgage, some are paid only by commission from the lender, and some use a mix of both. Highhouse Money will always be clear about whether a fee applies to your case; where a fee is charged, it is only ever payable on completion of your mortgage, and you will know the amount before you proceed.

What is an early repayment charge?

An early repayment charge (ERC) applies if you repay all or part of your mortgage, remortgage, or overpay beyond an allowance during a deal's initial period. It is usually a percentage of the balance repaid early and often reduces each year of the deal. Check your mortgage offer for the specific schedule.

Are there ongoing costs beyond the monthly payment?

Yes — buildings insurance is generally required by lenders, and depending on the property and mortgage type there may be service charges, ground rent, or life and income protection insurance to consider, none of which are part of the mortgage itself but affect the overall cost of homeownership.

How can I compare the total cost of different mortgage deals fairly?

Look beyond the headline interest rate to the combined cost of the rate, any fees, and the deal length — often summarised as the overall cost for comparison. A slightly higher rate with no fee can sometimes cost less overall than a lower rate with a large arrangement fee, depending on your loan size.

Sources and further reading

Where figures or rules can change, the position described is correct at the time of writing (25 August 2026) — always check the linked authoritative source for the latest position.

Residential mortgages

Whole-of-market advice on comparing deals by overall cost, not just rate.

Fixed, tracker or variable?

How the rate type interacts with the fees you pay.

First-time buyer mortgage checklist

Budgeting for your first purchase from deposit to completion.

How to choose a mortgage broker

Understand broker fee models before you commit.

Ask about the costs in your case

Get a clear breakdown of the costs that would apply to you.

Talk it through with an advisor

Every case is different. A short, no-obligation conversation with a whole-of-market advisor is often the fastest way to understand your options. Call 0345 512 0077 or send us a message.

Contact an advisor