Mortgage Fees

Reservation (booking) fee – payable when the borrower wishes to take advantage of a special deal – a fixed rate mortgage, for example. Typical fees would range from £100 to £300 and, in some cases would be refundable if the mortgage did not go ahead.
Arrangement fees – some lenders charge an arrangement fee on some or all of their mortgages.The fee can be as low as £50 and as high as £300, depending on the particular mortgage. In many cases the arrangement fee includes a basic property valuation.

Mortgage Indemnity Guarantee Premium – payable by the borrower through a single premium. The premium protects the lender against losses caused by the borrower defaulting and the lender having to take possession and sell the property. It is taken on completion and cannot be refunded or taken to another property. See further 4.2.1.3 below.
Broker’s fees – if the borrower uses a mortgage broker to arrange the mortgage, the broker is able to charge a fee, which must be stated clearly in the broker’s Initial Disclosure Document. In addition, the broker may receive a procuration fee from the lender.