The following fees may apply to your mortgage application although the amounts will vary from lender to lender.
Property Valuation Fee
All lenders will undertake, via a firm of surveyors, an inspection of the property that is being purchased or remortgaged. This is required for the lender to assess that the property is adequte to be used as security for the loan. The cost of a valuation report varies from lender to lender. Some lenders may provide this for free. We will make you aware of this cost, if any, from the outset.
You may wish to have a more detailed report in the the form of a Homebuyers Report or Structural Survey. We will tell you the differences in these reports in terms of both detail and cost.
Lenders Arrangement Fee
Many lenders will charge an Arrangement Fee although not in all cases. If there is a fee, most lenders will allow you to add this to the mortgage but be aware that interest will be charged on the amount if it is added to the loan.
Unlike some other mortgage brokers, we will not charge any upfront fees for our service.
Thereafter, you have two options as to how we are paid for our services :
In addition to any commission that we may receive from the mortgage lender, we will charge you a fee of up to 1% of the loan amount, payable when the loan starts, although a typical fee is £250. In some cases this fee may be waived.
We agree with you a fee of up to 1% of the loan, payable when the loan starts, but we will then refund to you any commission paid to us by the lender.
All of the above fees will be detailed on the Key Features Illustration (KFI) of the recommended product which we will provide to you before you make any financial commitment. We strongly believe in transparency and that it is imperative that you are fully aware of all costs associated with the transaction. Therefore, please contact us should you wish to seek any further clarification.
A solicitor or licenced conveyancer is required to undertake the legal work associated with e property purchase or a remortgage.
There are many remortgage products available where the lender will provide the legal work involved for free. However, for purchases, you are generally expected to meet this cost, although some lenders may offer a cashback as a contribution towards such fees.
We have an extensive panel of solicitors from which we can provide a competitive quote within seconds. The quote will break down the costs into to every aspect involved so you know exactly what you are paying for. Even if you do not use our mortgage service you can still obtain a solicitor quote from us for free.
Stamp Duty Land Tax
Stamp Duty Land Tax (SDLT) is charged on land and property transactions in the UK. The tax is charged at different rates and has different thresholds for different types of property and different values of transaction.
From 4 December 2014, SDLT for residential property is charged at different rates depending on the portion of the purchase price that falls within each of the following rate bands.
|Purchase price/lease premium or transfer value||SDLT rate|
|Up to £125,000||Zero|
|£125,000 to £250,000||2%|
|£250,000 to £925,000||5%|
|£925,000 to £1.5 million||10%|
|Over £1.5 million||12%|
For further information on SDLT please call us or refer to the HMRC website – www.hmrc.gov.uk/sdlt/intro/rates-thresholds.htm – or speak with your solicitor.
When you are looking to purchase a property you should also look at likely costs such as Council Tax and domestic fuel costs. You may be able to obtain such information from the Estate Agent or the seller of the property.