Guides > Fees

Fees

There are many fees associated with mortgages that will be explained by your adviser. The most common fees are detailed here with general explanations, however it is quite common for a lender to waiver one or more of these fees as an incentive.

APPLICATION FEE covers the administrative expenses incurred whilst processing an application. For example, the staff time involved with taking up references, credit checks, voter’s roll checks and any valuation charges that apply. Some of this fee is usually deemed non-refundable from the outset and once the application process is well advanced, it is usually considered entirely spent. Your adviser should explain the amount and terms of the fee required.

EXISTING / PREVIOUS LENDER REFERENCE CHARGES may apply if you already have a mortgage and a reference is required from that lender, as they will usually charge for providing this reference. This can often be avoided if annual mortgage statements and bank statements prove satisfactory conduct.

BOOKING AND/OR ARRANGEMENT FEES may be charged for specific products and be payable in advance, added to the loan or deducted from the advance on completion. Your adviser should make you aware of any such fees from the outset.

HIGHER LENDING CHARGE The lender may impose a charge if the amount required is higher than a certain percentage of the property value, and will either deduct it from the advance or add it to the loan. Your advisor should make sure that you know whether the charge will apply, and if so, the amount and method of repayment.

This money gained from this fee will be used by the lender to indemnify themselves against any financial loss they may experience should they have to repossess the property due to payment default(s). Although you pay this fee, it will only benefit the lender or any insurer involved, in trying to recover all or part of any loss involved.

Such cover will not protect you if your property is subsequently taken into possession and sold for less that the amount you owe. You will also remain liable to pay all the sums owing, including arrears, interest and your lender’s legal fees and interest - that will continue to mount up as long as the mortgage is outstanding.

Remember. Mortgages are personal to you - your circumstances, your lifestyle and your budget.

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Your home may be repossessed if you do not keep up repayments on your mortgage