Mortgage costs guide

When you’re planning a home purchase, the mortgage itself is only part of the picture. Alongside your deposit, there are often lender fees, valuation and survey costs, legal and conveyancing charges, and day-to-day moving expenses. If you don’t account for these items early, it’s easy for your budget to get squeezed.

This guide sets out the main mortgage-related costs buyers commonly face, explains what they cover, and highlights where costs can vary.

What are the typical mortgage costs?

Mortgage costs usually fall into a few categories: fees charged by the lender, costs linked to assessing the property, legal and administration charges, and practical costs connected with moving.

Mortgage booking, arrangement and account fees

These are the charges associated with securing and setting up the mortgage.

Cost category	What it covers	Typical range (UK)	Notes to consider
Mortgage booking fee	A charge for reserving a mortgage deal	£100 – £200	May be non-refundable if the application doesn’t complete.
Arrangement / product fee	A lender fee for setting up the mortgage product	£1,000 – £2,000+	Sometimes paid upfront or added to the mortgage (which can increase the overall amount repaid).
Mortgage account fee	A charge to open and maintain the mortgage account	£100 – £300	Usually due on completion or at set points.

Valuation and survey costs

Lenders require a valuation to confirm the property’s value for lending purposes. Buyers may also choose a survey to understand the property’s condition.

Cost category	What it covers	Typical range (UK)	Notes to consider
Mortgage valuation fee	Lender-required valuation	£150 – £800	Not the same as a full survey; some lenders may cover this cost.
Surveyor’s fees (general)	Independent inspection of the property	£400 – £1,500	The right level depends on the property type and age.
Level 1: Condition report	Basic report for newer homes	From £380	Focuses on condition; limited detail on repair advice.
Level 2: Homebuyer report	More detailed report for standard properties	From £400	Often used for typical residential purchases.
Level 3: Building survey	Full structural survey for older/complex properties	From £600+	More comprehensive analysis and repair guidance.
New-build snagging survey	Checks for construction defects	From £300	Helps identify issues that should be addressed by the developer.

Legal and conveyancing fees

A solicitor or conveyancer handles the legal work needed to transfer ownership and manage mortgage-related requirements.

Cost category	What it covers	Typical range (UK)	Notes to consider
Legal & conveyancing fees	Contract work, legal checks, and completion processes	Around £2,000 (incl. VAT)	Search fees and disbursements are often separate.
Local authority searches	Checks such as planning and property-related information	£250 – £300	Usually charged in addition to solicitor fees.
Electronic transfer fees	Charges for sending mortgage funds	£25 – £50 per transaction	Ask whether these are included in the legal quote.

Insurance and mortgage-related protection

Mortgage lenders typically require buildings insurance. Contents insurance is often optional, but many buyers choose it to protect belongings.

Cost category	What it covers	Typical range (UK)	Notes to consider
Buildings insurance	Required by most lenders	Varies	Premiums depend on property value, location and cover level.
Contents insurance	Optional protection for belongings	Varies	Can be useful, especially if moving into a new home.

Moving and settling-in costs

Even when the mortgage completes smoothly, there are practical costs that can catch buyers out.

Cost category	What it covers	Typical range (UK)	Notes to consider
Moving costs	Removals, transport and related services	£400 – £1,000+	Costs vary by distance, timing and property access.
Storage	If there’s a gap between leaving and moving in	From ~£22/week	Price depends on unit size, location and security features.
Cleaning fees	Often relevant if renting before you move	Varies	Check lease requirements to avoid deposit deductions.
Mail redirection	Royal Mail redirection to a new address	From ~£36	Useful to reduce the risk of missing important letters.

Remortgage and porting: additional costs to plan for

If you’re remortgaging (switching your mortgage deal) or porting (moving your existing mortgage to a new property), there can be extra charges depending on your current lender and the new arrangement.

Remortgage fees

Remortgaging can involve lender fees and exit costs from your current deal.

Early repayment charges (ERCs): If you leave your current mortgage before the end of a fixed period, ERCs may apply.
Exit fees: Some lenders charge an amount for closing the mortgage.
New lender fees: The new mortgage may include booking, arrangement and valuation-related costs.

Porting a mortgage

Porting lets you move your existing mortgage product to a new property, subject to lender rules.

Lender-dependent: Whether porting is available and what fees apply depends on your lender and your current mortgage terms.
Property and affordability checks: Even when porting, the new property and your circumstances may still need assessment.

Planning ahead: avoiding surprise costs

Budgeting for mortgage costs is about more than adding up fees. It’s also about understanding timing and how costs are paid.

Upfront vs added-to-mortgage fees

Some lender fees can be paid upfront or added to the mortgage. Adding fees can increase the total amount borrowed, which may affect the overall cost over time.

Timing matters

Costs can be due at different stages:

Before completion: booking fees, valuation fees, and survey costs.
Around completion: legal and conveyancing fees, and some lender charges.
After completion: ongoing insurance premiums and any moving-related expenses.

Build a buffer

Even with careful planning, there can be small variations in quotes (for example, search fees or survey requirements). A modest buffer can help prevent last-minute funding issues.

First-time buyer budgeting: what to include

First-time buyers often focus on the deposit and monthly repayments, but the total cash needed to complete can be higher than expected.

When planning, consider including:

Mortgage-related fees (booking, arrangement/product and account fees)
Valuation and survey costs (and the level of survey appropriate to the property)
Legal and conveyancing fees plus searches
Buildings insurance from completion
Moving costs and any storage needs

If you’re using a government-backed scheme or buying with a specific structure (such as shared ownership), the overall cost picture can still include many of the same fee categories, though the details may differ.

How mortgage costs can vary

Mortgage costs aren’t identical for every borrower. Key factors that can influence what you pay include:

Property type and value (affects survey and valuation requirements)
Property age and condition (affects the likely survey level)
Lender and product choice (fee structures differ)
Whether you’re remortgaging or porting (exit charges and product rules)
Timing and complexity of the transaction (can affect legal work and searches)

Summary: the full cost of a mortgage is more than the interest rate

A mortgage can be one of the biggest financial commitments you’ll make, but the overall cost includes more than interest. By planning for lender fees, survey and valuation charges, legal and conveyancing costs, and moving expenses, you can create a clearer budget and reduce the risk of unexpected shortfalls.

If you’re comparing mortgage options, it’s typically helpful to look at the full cost package—fees, timing, and any potential charges linked to changing or exiting the mortgage later—rather than focusing on one figure alone.

Mortgage costs guide