Finding the right mortgage requires a lot more thought than just comparing rates. These days, home loans come with a multitude of additional fees which can greatly influence the true cost of financing a property.

In fact, lenders have become experts at manipulating the best buy tables with low rates to get themselves to the top, only to hammer borrowers with huge, hidden charges.

This means you need to do your sums first, which a good broker can help with.

Here is a breakdown of the typical fees you may pay when getting a mortgage, split between applying for a new deal and paying off your existing one.

Applying for a mortgage

Application fee

This is part of the price of your mortgage. Often, you have the choice of adding the fee to your loan (which means it incurs interest) or pay it up front.

Application fees can vary wildly depending on the deal, from anything from £99 to several thousands of pounds.

A portion of this fee is sometimes non-refundable and must be paid up-front.

Legal fee

You will need to enlist a solicitor to sort the legal details, which can cost a few hundred pounds.

Valuation fee

You lender will usually try to ensure your property is worth what you’re paying, which can typically cost between £200 and £3,000 depending on the value.

Higher lending charge

Some lenders levy a fee if the sum you borrow is close to the property value. A typical charge on a £200,000 mortgage is £3,000.

Other fees

You may pay if you don’t take your lender’s buildings insurance, and to have the money transferred to your account.

Paying off your mortgage

Exit fee

When you clear your mortgage (either because it’s paid off or you’re switching to another deal) some lenders charge up to £300 to close your account.

Early repayment charge

If you clear your mortgage or switch lender during an introductory period you are likely to pay up to 5% of the balance which can run into thousands of pounds, so it’s often best to wait until your deal expires. Sometimes, early repayment charges extend beyond an introductory period, though this is rare.