Mortgage Fees

Question 1

Arrangement fee

Answer 1

Sometimes called product fee. It is the fee for the mortgage product and Usually found on products with lower rates. Can sometimes add it to the mortgage but will increase amount owed. Typically £0-£2000+

Question 2

Booking fee

Answer 2

Fee charged for booking a mortgage and is usually not refundable even if mortgage falls through. £100-300

Question 3

Valuation fee

Answer 3

Fee for getting a property valued. £250-£1250 but depends on the property value

Question 4

Telegraphic transfer fee

Answer 4

Sometimes known As CHAPS (clearing house automated payment system) fee pays for your mortgage provider to transfer money to your solicitor. Usually non refundable. £25-50

Question 5

Mortgage account fee

Answer 5

Pays for lenders admin costs in setting up, maintaining and closing your mortgage. If paid, unlikely to need to pay exit fee. £100-300

Question 6

Missed payments

Answer 6

A fee for if your account is in arrears. Appropriate penalty set by lender

Question 7

Mortgage broker fee

Answer 7

Fee set for hiring a mortgage broker to help with finding a mortgage. Fee depends on broker

Question 8

Higher lending charge

Answer 8

A fee charged for needing to borrow more than a specified percentage of the property value. Fee charged on any percentage above the specified limit

Question 9

Early repayment charge

Answer 9

A fee for paying off a mortgage early. Not always applied to a contract. Fee usually 1-5% of the value repaid early

Question 10

Exit / closure fee

Answer 10

Fee paid to lender when you repay your mortgage even if you are not repaying early. Wont need to pay if you paid mortgage account fee. Typically £75-300