Mortgage and legal fees explained
From brokers to bank transfers - getting to grips with the real cost of buying a home.
Related articles
The hidden costs of home-buying
Buying a home is exciting - but let's be honest, the process comes with a few financial surprises. Two of the biggest are mortgage and legal fees. These are easily forgotten in the flurry of deposits and purchase prices, but they're just as important to budget for.
Whether you're just stepping into the market or striding up the ladder, let's look at what to expect and when you might have to pay.
Mortgage fees: beyond the purchase price
Mortgage fees are the charges your lender (the bank or building society) might ask you to pay when taking out a mortgage. Some can be avoided, but not always.
The main types of mortgage fee
- Arrangement fee
This is what you pay the lender for giving you the mortgage deal. It can range from zero to £2000 or more. Some lenders let you add this to your mortgage total, but that means you’ll pay interest on it. They may also charge an admin fee now or later. - Booking fee
A smaller fee, usually a hundred or so, sometimes charged when you make your mortgage application. It's often non-refundable, even if your mortgage doesn't go ahead. - Valuation fee
The lender wants to check the property is worth what you're paying for it. Sometimes it's free, but you could pay around £150–£1,500, depending on the property's value. You can also pay a survey fee for your own, detailed inspection. - Mortgage broker fee
If you use a broker to find you a deal, they might charge a fee of a few hundred to around a thousand pounds. Some are free to you, as they get paid directly by the lenders - so be sure to ask upfront. - Early repayment charges
If you decide to repay your mortgage early or remortgage within a deal period, your lender might charge a percentage of the outstanding balance and even an exit fee. For example, if you have a £150,000 mortgage and an early repayment charge of 2%, that's £3,000 to factor in.
Legal fees: the cost of conveyancing
Legal costs, also known as conveyancing fees, cover all the legal work involved in transferring a property from one person to another. This isn't something you can typically do yourself.
The main legal costs
- Solicitor or conveyancer fees
These can range from a few hundred to a thousand or more, depending on the complexity of the sale and where you live. Leasehold properties tend to cost more because there's more paperwork involved. - Search fees
Your solicitor will carry out searches with the local authority to check things like planning issues, flood risks, or whether the property is on contaminated land. These typically cost a few hundred pounds. - Land Registry fee
When you buy a property, the change in ownership needs to be officially recorded. The fee can vary depending on the price of the property - you can work it out how much you'll pay on the government portal. - Stamp duty land tax (SDLT)
If your home costs more than £125,000, you'll probably pay stamp duty starting at 2% (unless you're a first-time buyer and qualify for relief). The Welsh equivalent is the land transaction tax (LTT), while in Scotland it's the land and buildings transaction tax (LBTT). - Bank transfer fee
This is a small fee (around £30) to cover the cost of transferring the funds to the seller's solicitor on completion day. It's sometimes referred to as a telegraphic transfer fee.
Summing up
As well as the ongoing costs like council tax and mortgage repayments, it's easy to overlook the additional fees and charges that come with your new home. They can make a big impact on your budget, but careful budgeting from the start means you won't be left scrambling to find the money later on.
Frequently Asked Questions
Do I have to pay all mortgage fees upfront?
Not always. Some fees, like the booking fee, are paid when you apply for the mortgage and are often non-refundable. Others, like the arrangement fee, may be paid at completion or added to your mortgage. Be careful with adding them on - it might seem convenient, but you'll end up paying interest on them for the life of the loan. This could cost you hundreds or even thousands more over time.
Do I have to pay all mortgage fees upfront?
Not always. Some fees, like the booking fee, are paid when you apply for the mortgage and are often non-refundable. Others, like the arrangement fee, may be paid at completion or added to your mortgage. Be careful with adding them on - it might seem convenient, but you'll end up paying interest on them for the life of the loan. This could cost you hundreds or even thousands more over time.
Do I have to pay all mortgage fees upfront?
Not always. Some fees, like the booking fee, are paid when you apply for the mortgage and are often non-refundable. Others, like the arrangement fee, may be paid at completion or added to your mortgage. Be careful with adding them on - it might seem convenient, but you'll end up paying interest on them for the life of the loan. This could cost you hundreds or even thousands more over time.
Can I choose my own solicitor?
Yes, in most cases, you're free to choose your own solicitor or licensed conveyancer. Some mortgage providers offer a free legal service as part of the deal, but this usually involves using one of their panel solicitors. If you prefer more control or want someone more local or responsive, you can hire your own. Make sure they're experienced in residential conveyancing and registered with the Solicitors Regulation Authority (SRA).
Can I choose my own solicitor?
Yes, in most cases, you're free to choose your own solicitor or licensed conveyancer. Some mortgage providers offer a free legal service as part of the deal, but this usually involves using one of their panel solicitors. If you prefer more control or want someone more local or responsive, you can hire your own. Make sure they're experienced in residential conveyancing and registered with the Solicitors Regulation Authority (SRA).
Can I choose my own solicitor?
Yes, in most cases, you're free to choose your own solicitor or licensed conveyancer. Some mortgage providers offer a free legal service as part of the deal, but this usually involves using one of their panel solicitors. If you prefer more control or want someone more local or responsive, you can hire your own. Make sure they're experienced in residential conveyancing and registered with the Solicitors Regulation Authority (SRA).
Are there ways to reduce solicitors' fees?
Yes, there are a few smart ways to cut down on legal fees. Start by getting several quotes from different professionals - many offer free, no-obligation estimates online. Make sure you're comparing like-for-like: some quotes might look cheaper but exclude things like VAT, searches, or bank transfer fees. Look for firms that offer fixed-fee pricing so you won't be surprised by extra costs later on. Lastly, don't be afraid to negotiate.
Are there ways to reduce solicitors' fees?
Yes, there are a few smart ways to cut down on legal fees. Start by getting several quotes from different professionals - many offer free, no-obligation estimates online. Make sure you're comparing like-for-like: some quotes might look cheaper but exclude things like VAT, searches, or bank transfer fees. Look for firms that offer fixed-fee pricing so you won't be surprised by extra costs later on. Lastly, don't be afraid to negotiate.
Are there ways to reduce solicitors' fees?
Yes, there are a few smart ways to cut down on legal fees. Start by getting several quotes from different professionals - many offer free, no-obligation estimates online. Make sure you're comparing like-for-like: some quotes might look cheaper but exclude things like VAT, searches, or bank transfer fees. Look for firms that offer fixed-fee pricing so you won't be surprised by extra costs later on. Lastly, don't be afraid to negotiate.
How do I know if stamp duty applies to me?
Stamp duty land tax (SDLT) is a government tax you pay when buying property over a certain value in England or Northern Ireland. As of now, you won't pay any stamp duty on a property under £125,000 (or £300,000 if you're a first-time buyer). Above that threshold, the rate you pay depends on the purchase price and whether you own other properties. Your solicitor will usually calculate this for you, but you can also check our SDLT calculator.
How do I know if stamp duty applies to me?
Stamp duty land tax (SDLT) is a government tax you pay when buying property over a certain value in England or Northern Ireland. As of now, you won't pay any stamp duty on a property under £125,000 (or £300,000 if you're a first-time buyer). Above that threshold, the rate you pay depends on the purchase price and whether you own other properties. Your solicitor will usually calculate this for you, but you can also check our SDLT calculator.
How do I know if stamp duty applies to me?
Stamp duty land tax (SDLT) is a government tax you pay when buying property over a certain value in England or Northern Ireland. As of now, you won't pay any stamp duty on a property under £125,000 (or £300,000 if you're a first-time buyer). Above that threshold, the rate you pay depends on the purchase price and whether you own other properties. Your solicitor will usually calculate this for you, but you can also check our SDLT calculator.
What if my purchase falls through - do I still pay the fees?
Unfortunately, yes - in most cases, you could still be responsible for paying certain fees. Mortgage booking, valuations, and search fees are almost always non-refundable. Solicitors will charge for any work they've completed up to that point. Some offer a "no move, no fee" guarantee, meaning you only pay if the deal completes - these may be worth looking into for peace of mind.
What if my purchase falls through - do I still pay the fees?
Unfortunately, yes - in most cases, you could still be responsible for paying certain fees. Mortgage booking, valuations, and search fees are almost always non-refundable. Solicitors will charge for any work they've completed up to that point. Some offer a "no move, no fee" guarantee, meaning you only pay if the deal completes - these may be worth looking into for peace of mind.
What if my purchase falls through - do I still pay the fees?
Unfortunately, yes - in most cases, you could still be responsible for paying certain fees. Mortgage booking, valuations, and search fees are almost always non-refundable. Solicitors will charge for any work they've completed up to that point. Some offer a "no move, no fee" guarantee, meaning you only pay if the deal completes - these may be worth looking into for peace of mind.
What if my purchase falls through - do I still pay the fees?
Unfortunately, yes - in most cases, you could still be responsible for paying certain fees. Mortgage booking, valuations, and search fees are almost always non-refundable. Solicitors will charge for any work they've completed up to that point. Some offer a "no move, no fee" guarantee, meaning you only pay if the deal completes - these may be worth looking into for peace of mind.
Can a mortgage broker save me money on fees?
Yes, a good mortgage broker can often help you save money on fees. Brokers have access to a wide range of mortgage deals, including some that aren't available directly to the public. They may be able to find a deal with lower arrangement or valuation fees, or one that includes extras like free legal processing or cashback. Some brokers charge their own fee, while others are paid by the lender.
Can a mortgage broker save me money on fees?
Yes, a good mortgage broker can often help you save money on fees. Brokers have access to a wide range of mortgage deals, including some that aren't available directly to the public. They may be able to find a deal with lower arrangement or valuation fees, or one that includes extras like free legal processing or cashback. Some brokers charge their own fee, while others are paid by the lender.
Can a mortgage broker save me money on fees?
Yes, a good mortgage broker can often help you save money on fees. Brokers have access to a wide range of mortgage deals, including some that aren't available directly to the public. They may be able to find a deal with lower arrangement or valuation fees, or one that includes extras like free legal processing or cashback. Some brokers charge their own fee, while others are paid by the lender.
Can a mortgage broker save me money on fees?
Yes, a good mortgage broker can often help you save money on fees. Brokers have access to a wide range of mortgage deals, including some that aren't available directly to the public. They may be able to find a deal with lower arrangement or valuation fees, or one that includes extras like free legal processing or cashback. Some brokers charge their own fee, while others are paid by the lender.
About the author
Lawrence Howlett
Lawrence Howlett brings a results-driven mindset to his writing, shaped by over a decade of experience across finance, legal, and energy sectors. As the founder of Moneysavingadvisors, he’s built a reputation for turning complex financial concepts into clear, actionable insights for consumers. His writing stands out for its clarity, structure, and focus on delivering value.
Articles that might interest you
Stamp duty: a guide to UK property tax
When you're buying a property in the UK, stamp duty is likely one of the most significant additional costs you'll need to consider. This guide will provide an overview of this important property tax.
First-time buyer mortgages: getting on the property ladder
Taking your first step onto the property ladder can feel overwhelming, but understanding first-time buyer mortgages doesn't have to be complicated. This guide will walk you through everything you need to know.
Offset mortgages
Link your savings to your mortgage and take control of your repayments with more freedom and flexibility.
