Mortgage Costs Guide | Understanding your mortgage costs is key to planning a stress-free home purchase. Beyond your deposit, there are many upfront fees, legal charges, and optional services that add to your total budget. At Connect Brokers, we simplify the process, helping you anticipate every cost and avoid surprises.
What Are the Typical Mortgage Costs?
While your mortgage loan may be the largest part of your financial commitment, there are several other expenses to account for.
Mortgage Costs and Home Buying Fees – Complete Breakdown
| Cost Category | Details | Typical Range | Notes |
|---|---|---|---|
| Mortgage Booking Fee | Charged by lenders to reserve a mortgage deal. | £100 – £200 | Often non-refundable. Check if it’s waived if the deal falls through. |
| Arrangement/Product Fee | A lender fee for setting up the mortgage product. | £1,000 – £2,000+ | Can be paid upfront or added to the mortgage (interest applies if added). |
| Mortgage Account Fee | Charged to set up and maintain your mortgage account. | £100 – £300 | Paid on completion or sometimes added to the total borrowing. |
| Remortgage Fees | Costs involved in switching to a new lender or product. | £1,000+ | May include Early Repayment Charges (ERC) and exit fees from your current lender. |
| Mortgage Valuation Fee | Lender-required survey to confirm the property value. | £150 – £800 | Not a structural survey. Some lenders cover this cost—confirm upfront. |
| Surveyor’s Fees | Independent inspections that reveal issues and the condition of the home. | £400 – £1,500 | See options below. Ensure your surveyor is RICS or RPSA-accredited. |
| Level 1: Condition Survey | Basic report for newer homes. No repair advice. | From £380 | Doesn’t include valuation or structural assessment. |
| Level 2: Homebuyer Survey | Suitable for standard properties. Detects issues like damp or subsidence. | From £400 | Some versions include a valuation to help adjust your offer. |
| Level 3: Building Survey | Full structural survey ideal for older or complex properties. | From £600+ | Includes repair advice and deeper analysis of potential defects. |
| New-Build Snagging Survey | Checks for construction defects in new homes. | From £300 | Developers are responsible for fixing snags before and after move-in. |
| Home Insurance | Buildings insurance is required by lenders. Contents insurance is optional but recommended. | £375 avg/year (combined) | Explore home insurance advice and consider life insurance to cover the mortgage. |
| Legal & Conveyancing Fees | Solicitor or conveyancer required to handle contracts and legal checks. | £2,000 incl. VAT | Local authority searches usually cost an extra £250–£300. See our guide to conveyancers for trusted professionals. |
| Electronic Transfer Fees | Lender and solicitor may charge for transferring mortgage funds. | £25 – £50 per transaction | Ask if these are included in your legal quote. |
| Moving Costs | Covers removals, transport, and setup of your new home. | £400 – £1,000+ | Use BAR-accredited firms for reliability and insurance. |
| Storage Costs | Needed if there’s a gap between moving out and in. | £22/week (50 sq ft unit) | Prices vary by location, size, and security features like 24-hour access or CCTV. |
| Cleaning Fees | For rented properties, they must meet the lease terms. | Varies | Failing to clean can lead to deposit deductions. See the moving checklist for renters. |
| Mail Redirection | Royal Mail redirection to your new home address. | From £36 | Avoids missed bills or important letters. |
| Porting a Mortgage | Move your current mortgage to a new property. | Lender dependent | Covered in our Selling & Porting Guide. |
Planning Ahead: Avoiding Surprise Costs
Knowing what to expect helps you avoid budget shortfalls. We walk clients through these costs during every consultation, offering clarity around both obvious and hidden charges.
Our expert mortgage advisers don’t just help you compare rates; they assess the full cost of borrowing, including upfront fees, long-term interest impact, and exit charges that could affect future remortgaging options.
We also explain:
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When it’s better to pay a product fee upfront vs. adding it to your loan
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Which lenders offer fee-free deals (ideal for cost-conscious buyers)
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How to choose products with low early repayment charges in case your plans change
Our advisers can also guide you on the best mortgage products that balance fees with competitive interest rates, helping you make financially smart, future-proof decisions.
First-Time Buyer? We’ve Got You Covered
Buying your first home is exciting, but it also comes with unique challenges, especially when budgeting for the full cost of your mortgage. That’s why we’ve created a dedicated Mortgage Advice for First-Time Buyers guide to help you every step of the way.
Our expert advisers offer support on:
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Understanding your full mortgage costs, from deposits to solicitor fees
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Accessing government schemes like Help to Buy or Shared Ownership
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Improving your mortgage eligibility through credit score and income tips
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Comparing first-time buyer mortgage products to find the best fit
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Avoiding hidden fees that can catch new buyers off guard
At Connect Brokers, we ensure first-time buyers have the clarity, confidence, and expert advice needed to secure their first property without financial surprises.
Why Choose Connect Brokers?
We’re more than a broker; we’re your guide through every cost, every form, and every decision.
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Access to over 100 lenders
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Fee-free advice in many cases
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Friendly, jargon-free support
How We Can Help
At Connect for Intermediaries, we work with a wide range of specialist lenders to secure buy-to-let solutions for every type of landlord. Whether you’re navigating HMO licensing or expanding a limited company portfolio, we offer personalised advice and access to exclusive products.
If you’re starting out, check our Adviser Mortgage Network for the Newly Qualified page to see how we support new advisers working with property investors.
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If you’re serious about developing your client base and becoming the adviser people remember and recommend, you’re in the right place.
Ready to grow? Join Our Network today and turn leads into loyal clients.
Thank you for reading our “Mortgage Costs Guide | Full Breakdown for Mortgage Buyers” publication. Stay “Connect“-ed for more updates soon!