How the costs mount up for house buyers

Whether you are getting your mortgage direct from a lender or via a broker, there are other fees and charges you may encounter.

Mortgage indemnity insurance, aka "Mig" (mortgage indemnity guarantee): A Mig fee is imposed by some lenders when people are looking to borrow above a certain amount, usually 90% or 95% of the property's value. Some people view the fees as unfair because it's not something the borrower receives any benefit from - the insurance reimburses the lender if you fail to meet repayments and it makes a loss.

It can add hundreds of pounds to a borrower's bill. As a result, some experts say first-time buyers only able to stump up a very small deposit or none at all should try to avoid home loan deals that impose Mig fees.

Different lenders have different policies on Migs. Some, such as Nationwide and Northern Rock, are completely Mig-free. Others, such as the Halifax, are only Mig-free up to 90% loan-to-value, so if you're borrowing more than that, you need to factor in the cost of this.

Migs can often be costly and research has shown that people do not want to pay them, says David Hollingworth.

Booking fee: Some brokers or lenders may charge a fee for "booking funds in advance". Often it's not that much - around £50.

Broker's fee: Some mortgage brokers charge a fee of up to 1%. Others don't charge anything. So should you pay? That depends: if your requirements are complex or specialist, you may feel you want to pay someone. If your needs are straightforward or you are happy to sort it all out over the phone or the internet, you probably won't. It is perfectly possible to get face-to-face advice without paying a fee.

London & Country is probably the best-known of the no-fee brokers. Mortgageforce, a broker with locations across the UK, says the vast majority of its customers don't pay a fee.

London-based Charcol charges up to 1% if you want face-to-face or over-the-phone advice though says the average is 0.4%-0.5%.

It will depend largely on the size of the loan. Charcol operates an online service where you don't pay a fee, though this is execution-only and will fall short of specifically recommending a product.

London-based Savills Private Finance charges up to 1% but says the average fee is 0.5%, while Chase de Vere Mortgage Management, also based in the capital, charges up to 1% but generally rebates all the "procuration fee" to the borrower.

Many people will be unaware that in most cases, a mortgage broker earns commission - the procuration fee - from a lender when he or she recommends one of its mortgages. These fees can vary but are typically 0.25%-0.35%.

Survey fees: As a minimum you will probably have to pay the lender a mortgage valuation fee. Some deals provide a free valuation.

However, many home buyers will want to carry out their own full structural survey, particularly if it is an older property.

Legal fees: These will probably be a few hundred pounds. Again, with some deals - particularly those aimed at people remortgaging - there will be none to pay.