Mortgage application fees – what to consider

Are you a first-time buyer, family or retiree considering a mortgage? Mortgage application fees are rising. Don’t forget to check the overall cost of the mortgage.

Mortgage arrangement fees are on the rise, according to a recent article in The Guardian (5 April 2025). According to Moneyfacts, the average fee charged on a fixed rate mortgage deal has risen by £85 since 2020 to £1,129. Many high street lenders charge £1,999, a substantial mortgage arrangement fee, with some specialist lenders charging anything up to £4,000.

It is essential, therefore, that borrowers shop around and check the overall cost of the mortgage. It’s not simply a matter of considering how a lower top line rate might offset any additional fees. You also need to consider that if product fees are added to the mortgage, then interest is payable on those fees too. A lower interest rate set against a higher fee doesn’t necessarily translate to cheaper monthly payments.

With over 7,000 mortgage products on the market, finding the right one can become a bewildering experience. An ethical, ‘green’ mortgage can be even harder to find, especially for homes built using non-standard methods of construction, such as timber frame structures.

Eco Home Mortgage

That’s why, at Ecology, we try to make things as simple as possible.

Our new Eco Homes mortgage offers a full-term discount for borrowers wanting to purchase or remortgage a home with an Energy Performance Certificate (EPC) rating of B or above. This includes properties of non-standard construction and is available with a maximum loan-to-value of 80%.

And best of all, there is no application fee!

If you are considering buying or remortgaging an energy efficient home, find out more about our Eco Home Mortgage.

You can find out more about sustainable building practices too, by downloading our free Ecology Guide To Eco Renovation (PDF)