Unlike many Mortgage Brokers in the market ours will not charge you a fee for arranging your mortgage.
We are not tied to a particular lender and operate in the whole of the market, so rest assured you will get the best deal for you with no additional costs. What follows are other costs you may need to consider if arranging a mortgage through us or any other lender.
Valuation Fee
This may include a non-refundable admin fee and must normally be enclosed with the application form. The majority of lenders allow you to pay this by cheque or on a credit or debit card. The whole of this amount is non-refundable if the valuation has been carried out.
The type of valuation that you choose is normally dictated by the type, age and condition of the property. There are three types of survey:Basic Mortgage Valuation
This is for the lender’s own purposes, is the cheapest, and is simply to confirm that the property is good security for the loan, i.e. is worth what you are paying for it. It offers you little protection as a buyer and so you may wish to consider one of the other two options.
Homebuyer's Report
This provides concise information in a standardised format on the state of the property. This will include comments on any defects the property might have as well as the view of the valuer as to marketability of the property.
Full Structural Survey
This report is compiled after a detailed examination of the property. Any areas of concern that you might have about the property will be investigated. This is the most costly option for you however as you are committing a large amount of money to the property it can be good value if major and costly defects are spotted.
Arrangement Fee
This may be payable in advance or added to the loan. It is worth remembering if you choose the latter option that interest will be charged on this fee.
All or part of this may be non-refundable if the mortgage is declined or if you decide not to proceed. Check the Key Facts Illustration that you have been given by your adviser.Legal Costs and Fees
You will need to have appointed a legal representative at the time you make your application. The fees this person charges will be for conveyancing (the transfer of the ownership of the land), the costs of legal registrations and miscellaneous costs (known as disbursements), for example local search fees and land registry fees. The amount your representative charges varies between companies so it is best to shop around and get quotes early on in the process of buying your home.
Stamp Duty
Stamp duty is a ‘purchase tax’ and is generally payable where the purchase of the property is more than £125,000. The current charge is 1% of the purchase price of the property. This increases to 3% when the property is valued more than £250,000 and 4% if the value exceeds £500,000. This amount is paid on completion of your purchase.
Higher Lending Charge
This may apply if the amount you are borrowing exceeds 75% of the value of the property. This pays for the lender to take out an insurance policy. This policy is used to cover the lender only in the event where they have to repossess the property and the loan plus any unpaid interest above the value of the property. It does not offer you any protection in these circumstances. This policy is arranged by the lender and can be added to the loan.
Many lenders now do not make this charge or pay for the policy themselves again. This will be detailed in the key features illustration provided by your adviser.Repayment Charge
Some lenders may make an early repayment charge if you pay off the loan either in full or part before the end of the term. This can sometimes be a substantial amount so you should always check the terms in your offer letter from the lender.
Contact us for a free chat about you mortgage requirements.
