Mortgage Guide

Fees & Charges

These include:

Advice Fee - an amount we, as independent mortgage advisers, charge you for advising on and / or arranging a mortgage.

Procuration Fee - (sometimes referred to as (‘commission’) - an amount we may receive from the lender for placing a mortgage with it. This may be used to offset the Advice Fee or you can agree that we receive the whole amount and waive any Advice Fee.

Arrangement Fee - Depending on the mortgage you eventually choose, some lenders may require an arrangement fee to set up the loan.

Valuation Fee - Before a lender will offer you mortgage funds, it will usually require a qualified surveyor to inspect the property and to submit a valuation report. This is to ensure that the property is suitable for the loan requested; the report does not necessarily give you an indication as to the condition of the property. If the property is new and building not completed, you may have to pay an additional fee for a second valuation when it is finished.

Survey Fee - In addition to the valuation fee, you may wish to have your own survey carried out by a qualified surveyor; this can take the form of a ‘Home Buyers Report’ or ‘Building Survey’. Most lenders will allow you to have this carried out at the same time as the valuation report, thus saving you money.

Reservation Fee - In some cases, especially for new homes, you may be expected to pay a reservation fee or deposit. You should check whether this is returnable or not and obtain a receipt from the builder, the developer or their agent.

Legal Fees -Your solicitor or legal adviser will make a charge for both the sale and purchase or remortgage of the house: this is called ‘conveyancing’. We may be able to obtain preferential terms.

Land Registry Fee - This is a once-only charge to reimburse your solicitor or legal adviser who carries out the registration work on your behalf.

Estate Agent Fees - If you are selling your house through an Estate Agent, their fee will normally be paid by your Solicitor or legal adviser on your behalf from the sale proceeds. Estate Agent’s fees are not payable when you are buying a house.

Local Authority Search - This procedure, carried out by your solicitor or legal adviser, is to check whether any official plans, decisions or restrictions affect the property you intend to buy. This may take some weeks.

Bankruptcy Search - Your solicitor or legal adviser will undertake on behalf of the lender a bankruptcy search on you and your partner immediately prior to completion of the purchase.

Stamp Duty Land Tax - This is a Government tax imposed on most purchases and some specialised transfers of properties.

Telegraphic Transfer Costs - It is usual for the lender to transfer your mortgage funds to your solicitor’s or legal adviser’s bank by telegraphic transfer. A charge for this will be added to your final account.

Mining Search - If you live in an area where mining has been or is likely to be carried out, the lender may request your solicitor or legal adviser to carry out an appropriate search on its behalf.

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