How much does a mortgage cost?

The amount you have to pay each month and in total over the life of your mortgage depends on the deal you get and the cost of the property.

Here are the costs of a mortgage explained in detail and how to work out if you can afford one. The main costs are:


The interest rate will affect how much you have to repay overall and what you pay each month.

It is accrued across the lifetime of the mortgage and is charged as a percentage rate on the amount you owe.

For example, if you took out a £200,000 mortgage with an interest of 4% over 25 years, you could pay interest of £116,702 and repay a total of £316,702.

The mortgage in the above example could cost around:

  • £1,056 per month with an interest rate of 4%
  • £1,289 per month at 5%

You can work out how much interest would cost on a mortgage for the amount you need. Many lenders websites show you the amount you would have to pay each month, the total interest amount and an illustration of how much of the balance you would pay off each year.

Mortgage fees

  • Product fees are charged for taking out the mortgage
  • Application fees can be charged when you apply for a mortgage, whether you end up taking it out or not
  • Valuation fees may be charged by your lender for working out how much your property is worth
  • Higher lending charges come with some mortgages if you have a small deposit
  • CHAPS transfer fees are charged when the bank transfers the money, they are lending to you (usually to your solicitor)
  • Broker fees can be charged if you take out a mortgage recommended by a broker, however the better mortgage company offer fee free advice, unlike many of competitors.

You may also have to pay fees on your old mortgage:

  • Early repayments charges if you pay it off before the end of its term
  • Exit fees are charged on some mortgages when you move to a new lender