Residential mortgages

What fees you can expect to pay

It is important to understand the variety of fees that are incurred when applying for a mortgage or remortgage. Knowing what you are going to have to shell out and when will help you to make the right choice. Here’s a list of what you can expect to pay.

Broker Fee

It takes a lot of time and understanding to ensure a mortgage application is processed efficiently and effectively, that’s why most mortgage brokers charge a fee.

At Mortgages for Business we do not charge clients for initial advice.

An administration fee of £100 is due on receipt of an Agreement in Principle from the lender. A broker fee of £597 is then due if we are able to get you an acceptable, formal mortgage offer from the lender.

We will keep any commission payments made by the lender.

Alternatively, we will rebate to you any commission paid by the lender to us and charge you a broker fee of typically 1% of the total loan amount (exact percentage will depend upon the size and complexity of the mortgage application).

To discuss our broker fees in more detail please contact one of our mortgage consultants on 0345 345 6788.

Never be afraid to discuss fees with a mortgage broker. We have a duty to be transparent, so if there is anything you don’t understand, please ask. All mortgage advisers have to provide a detailed Key Facts Illustration of any mortgage you are interested in. A KFI is a standardised document which makes it easy to compare like for like and includes a full breakdown of all the costs involved.

Lender Arrangement Fee

This is the fee that the lender charges for arranging the mortgage. It is payable by the borrower to the mortgage lender at or before completion of the mortgage. This can often be added to the loan. Arrangement fees are usually a fixed amount but can be set as a percentage of the loan amount. Do keep in mind that generally, interest is charged on the arrangement fee if it is added to the loan. Sometimes, some lenders offer rates with no arrangement fees. Do ask one of our mortgage brokers for more details if this is of interest.

Application Fee

This is payable to Mortgages for Business who, in turn, pay the surveyor for the actual property valuation which is required by the mortgage lender. Please note that a copy of this valuation is normally only sent to the mortgage lender. The application fee must be paid before the valuation can be instructed.

Booking Fee

Some lenders charge a booking fee for securing a particular mortgage rate. This fee is usually found on fixed rate mortgages. The booking fee must be paid upon submission of the mortgage application.

Legal Fees

Mortgage lenders normally use the same solicitor as the customer (the practice must have two or more partners). All legal fees are payable by the borrower, as and when required by the solicitors. However, many residential remortgage deals offer free legal work if a solicitor chosen by the lender is used. If you do not have a solicitor, do ask for a recommendation.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

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