Mortgage Fees: What You’ll Pay When Buying a Home in Slough
Mortgage fees are the extra costs a lender, broker, or solicitor charges on top of your deposit and monthly repayments. In Slough, as everywhere else in the UK, you should budget for £1,500 to £3,500 in fees when arranging a typical mortgage, on top of stamp duty and moving costs. Some of these fees stop once you complete, but others can apply for as long as you hold the mortgage.
Why mortgage fees catch buyers out
Most first-time buyers in Slough focus on saving for the deposit and comparing interest rates. Fees get less attention, even though a low headline rate can come with a high arrangement fee attached, making the deal more expensive overall. This is one of several First Time Buyer Mistakes that can cost you money if you don’t plan for it early.
Understanding each fee, what it costs, whether it’s fixed or a percentage, and whether you can avoid it puts you in a stronger position when comparing mortgage deals, whether you’re buying near Slough town centre, Langley, or further out toward Burnham.
Fees when you apply for a mortgage
Mortgage arrangement fee
This is the main cost of setting up your mortgage deal. It’s sometimes called a ‘product fee’.
- Typical cost: £0 to £1,500, sometimes more on larger loans
- Who you pay: your lender
- When: upfront or added to your mortgage
Some arrangement fees are fixed. Others are charged as a percentage of your loan, which means they rise with the size of your mortgage and can add up to several thousand pounds on a large loan. Always check which type you’re being offered before comparing deals.
You can usually choose to pay this fee upfront or add it to your loan. Adding it means you pay interest on it for the life of the mortgage. If you want the best of both, ask your lender if you can add the fee to your mortgage, then make an overpayment to clear it once your mortgage starts. Most lenders allow you to overpay up to 10% of your balance each year without a penalty.
Key takeaway: A low interest rate can hide a high arrangement fee. Sometimes a slightly higher rate with a lower fee works out cheaper overall, especially on smaller mortgages.
Mortgage booking fee
Some lenders charge a separate fee just to secure your mortgage deal while your application is processed.
- Typical cost: £100 to £300
- Who you pay: your lender
- When: upfront, when you submit your application
This fee is non-refundable, even if your application is declined. Some lenders deduct the booking fee from your arrangement fee if both apply, but not all do, so ask directly.
Valuation fee
Your lender needs to confirm the property is worth what you’re paying before they’ll lend against it.
- Typical cost: £150 to £800, depending on property value
- Who you pay: your lender
- When: upfront
This isn’t the same as a full survey. A valuation only checks the property is adequate security for the loan, it doesn’t check for structural problems. Some lenders include the valuation for free, so it’s worth asking.
Higher lending charge
This fee applies if your mortgage covers an unusually high proportion of the property’s value (a high loan-to-value ratio), typically above 90%.
- Typical cost: a percentage of your loan
- Who you pay: your lender
- When: usually upfront
The charge covers the lender’s own insurance policy, protecting them, not you, if you default and the property has to be sold at a loss. Most lenders have stopped charging this fee, but check if you’re borrowing with a small deposit. It’s usually refundable if you don’t go ahead with the mortgage.
Anti-money laundering (AML) checks
Estate agents and solicitors are legally required to check your identity and source of funds.
- Typical cost: up to £100, often less
- Who you pay: your estate agent or solicitor
- When: after your offer is accepted
Not every estate agent charges for this. If you’re asked to pay a large fee, it’s worth querying it directly with the agent.
Broker fee
If you use a mortgage broker in Slough or elsewhere, they may charge you directly, or they may be paid commission by the lender instead.
- Typical cost: £0 to £500, or up to 1% of the loan amount
- Who you pay: your broker
- When: usually on completion
Ask upfront whether your broker charges a fee. Many local and online brokers are fee-free, earning their income from lender commission instead.
Legal and conveyancing fees
You’ll need a solicitor or licensed conveyancer to handle the legal side of your purchase.
- Typical cost: £800 to £2,000, plus disbursements for searches
- Who you pay: your solicitor
- When: throughout the process and at completion
Search fees (checking local authority records, environmental risks, and planning issues near the property) usually cost an extra £250 to £300 on top of the solicitor’s fee. Some lenders offer free legal work if you use their panel solicitor.
Electronic transfer fee
This covers the cost of sending your mortgage funds electronically from your lender to your solicitor.
- Typical cost: £25 to £75
- Who you pay: your lender, sometimes also your solicitor for the onward transfer
- When: at completion
This fee is usually non-refundable. Check whether it’s already included in your solicitor’s overall quote, as some bundle it in.
Land Registry fee
The Land Registry charges to transfer property ownership into your name.
- Typical cost: £20 to £500, depending on property value
- Who you pay: the Land Registry, usually via your solicitor
- When: at completion
This fee is unavoidable and applies to every property purchase.
Own-building insurance fee
If you choose your own buildings insurance instead of your lender’s policy, some lenders charge a small fee to check it meets their requirements.
- Typical cost: £25 to £50
- Who you pay: your lender
- When: when you arrange your own insurance
Fewer lenders charge this fee today, but it’s worth confirming with your lender before you buy insurance elsewhere.
Do I need a property survey?
A survey isn’t compulsory, but skipping one is a common costly mistake. A valuation only protects the lender’s interests, not yours.
- Typical cost: £400 to £1,500, depending on survey level
- Who you pay: your surveyor
- When: after your offer is accepted, ideally before you exchange contracts
A survey can flag damp, structural issues, or plumbing problems before you commit to buying. If problems come up, you can use the survey to renegotiate the price or walk away.
Key takeaway: The cost of a survey is small compared to the cost of fixing a serious problem you didn’t know about.
Fees after you have a mortgage
These fees don’t apply when you buy, but they can apply for as long as you hold the mortgage, so it’s worth knowing about them before you commit to a deal.
Early repayment charge (ERC)
If you pay off your mortgage or switch deals before your current term ends, you’ll likely face this charge.
- Typical cost: 1% to 5% of your outstanding loan
- Who you pay: your current lender
- When: if you repay early or switch deals mid-term
ERCs can add up to thousands of pounds, so check how long you’re tied into a deal before signing up, especially if you think you might move or remortgage sooner than planned. If you’re weighing up switching deals, see our full guide on Early Repayment Charges for how to calculate whether switching still saves you money.
Late payment fee
If you miss a monthly mortgage payment, most lenders will charge a fee.
- Typical cost: a small flat fee or a percentage of the missed payment
- Who you pay: your lender
- When: after a missed or late payment
Most lenders offer a short grace period before charging you. A late payment can also affect your credit score, which matters more in the long run than the fee itself.
Exit fee
This covers the admin cost of closing your mortgage account, whether you’re switching lenders or have simply paid off your mortgage in full.
- Typical cost: a fixed fee, usually under £300
- Who you pay: your current lender
- When: when your mortgage ends or you switch
This is also called a mortgage completion fee or deeds release fee. Check your original mortgage paperwork or ask your lender directly, as the amount varies by provider.
Ready to see what you could borrow? Talk to us about First-Time Buyer Mortgages in Slough and we’ll walk you through the fees before you commit to a deal.
