Costs & Fees

In addition to the loan used to purchase the property other charges may come into effect.

Below we have listed some of the more common charges.

If you are unsure of anything or else would like more information please call 0333 300 1874 or else make contact using the button below.

Costs and fees when arranging a mortgage

Lenders fees

Lenders charge a wide range of fees, but not all fees apply in every instance. Fees Lenders may charge include:

  • Application / Arrangement fee. This is the charge your lender will make for arranging a mortgage. You may be able to add this fee to your mortgage,  but this means you will be charged interest on  it over the term of the mortgage.

  • Early Repayment Charge (ERC). ERCs can become payable if you make over-payments above what the product permits or else if you redeem the mortgage earlier than permitted if am introductory / fixed rate mortgage was taken. This could apply to any existing finance you have but is also a consideration with any new finance you take out as an ERC can be a sizable amount. 

  • Exit Fee. Some products by some lenders can involve a fee to release the deeds of a mortgaged property to either another lender or yourself.

  • Higher Lending Charge (HLC). Some lenders seek to charge a HLC if you are looking to borrow a significant proportion of the value of the property in order to purchase. 

  • Valuation fee. Some Lenders may ask you to pay the valuation fee. 

Professional Fees (Accounting, Financial Advice & Legal Fees)

In addition to the fees Lenders may charge you, other professional adviser fees may also become payable:

  • Accountancy / Tax advice fees. If you are looking for advice for the best way of structuring your property investment, either your own name, a company asset or a Specialist Purpose Vehicle then good tax advice is essential, ideally from someone who is a specialist in this field. We can put you in contact with accountants who have experience in property tax matters.

  • Financial Advice fees. The initial contact we have with you is done so free of charge. If you wish to proceed then we have to charge for the work we do on your behalf. This includes researching the market and speaking to various lenders to see what rates could be available. We will also undertake to verify lenders appetite for the combination of your individual circumstances (such as the proportion of the property purchase you are looking to arrange finance for) and also the condition of the property. We will fully disclose the charges we will make at the outset.

  • Legal fees. Solicitors charge for conveyancing (transfer of ownership of assets including land) and will seek to pass on disbursement costs such as legal registrations, Land Registry Fees and any other Local Search fees.