Mortgaging your home can be incredibly stressful, not to mention expensive. When organising finance on a property, there are many fees associated with the process. Please find below an explanation of those main fees:
Application Fee
The application fee is charged to cover all of the administration charges incurred through processing the mortgage application and can sometimes include the valuation fee. It is normally paid at the beginning of the process and often non-refundable.
Survey/Valuation Fees
This fee pays for a survey to be carried out on the property. All lenders require this to ensure that the property will be sufficient security for the mortgage. The fee is usually paid up front and often non-refundable.
Arrangement Fees
Many lenders charge this fee and it often relates to a specific type of mortgage product. The amount charged varies between the lenders and can either be paid up front, added or deducted from the loan amount on completion of the mortgage.
Higher Lending Charge
This is a charge set by lenders and is used to protect them against any financial loss incurred should they need to repossess the property due to defaults. It only applies if the amount being borrowed is higher than a certain percentage of the property value (the percentage figure varies from lender to lender). The fee can usually be paid up front or added to the loan on completion and repaid over the term of the mortgage.
Administrative Fees
We may charge a fee of up to £995 depending on your personal circumstances - Ask for an illustration.