Choosing a mortgage
Other Charges On Your Mortgage
All mortgage lenders will have a tariff of other charges
that you will incur in certain circumstances, which are
outlined below, along with an approximate guide to the cost.
Not all lenders will make these charges and if they do,
they may come under a different name.
Telegraphic transfer fee
This is charged when the mortgage is transferred direct
to your Solicitor's bank in readiness for completion of
the mortgage.
Approximate cost: £10 - £25
Balance breakdown
This can be charged for a month-by-month breakdown of your
account balance, over and above the information contained
in your Annual Statement.
Approximate cost: £15 - £30
Interim/copy statement
Usually charged when you request a copy of an annual statement
previously issued or when you request a statement outside
of the normal annual statement period.
Approximate cost: £10 - £20
Further advance application received
You can often have the facility to borrow further funds
once you have been paying your mortgage for a set period
of time. This fee covers the cost of assessing the merits
of your application.
Approximate cost: £50 - £100
Further advance legal cost
Also charged when you apply for a further advance, this
covers the necessary administration to ensure that the lender's
legal charge over the property is maintained when further
money is lent.
Approximate cost: £20 - £50
Scheme switching fee
This can be charged when you request to transfer your
debt from one mortgage product to another. It is usually
charged on completion of the switch. An increasing number
of lenders now allow you to switch freely between schemes,
though usually only once the introductory offer period is
over.
Approximate cost: £0 - £150
Arrears fee
This is charged on a monthly basis to cover additional administrative
costs where your mortgage account is one or more monthly
payments in arrears.
Approximate cost: £15 - £40
Arrears breakdown
You may have to pay if you request a month-by-month breakdown
of any arrear balance and charges. The fee is usually added
to your account once you have been sent the breakdown.
Approximate cost: £10 - £30
Solicitors letter
This is charged when your account falls in arrear and the
lenders instruct solicitors to act on their behalf.
Approximate cost: £20 - £30
Unpaid ground rent/service charge
If you are a leaseholder, and the freeholder notifies the
lender that you have not paid your ground rent or service
charge, the lender may penalise you.
Approximate cost: £30 - £50
Unpaid own buildings insurance
You may also be penalised if it is your buildings insurer
notifies the lender that you have not paid your premium.
Approximate cost: £20 - £40
Cheque unpaid
If you have a flexible facility that allows you a chequebook,
you will be charged if a cheque you write bounces.
Approximate cost: £15 - £30
Mortgage reference
If you apply for a remortgage or a new mortgage, the new
lender will want a mortgage reference from your existing
lender. You will probably have to pay for this.
Approximate cost: £20 - £50
Deeds release fee
When you are selling the house, your solicitor will need
to inspect the deeds.
Approximate cost: £25 - £40
Part sale of land
This is charged when a request is made to sell part of the
security. The fee is usually paid when the part sale of
land is completed.
Approximate cost: Approx. £50
Redemption fee - new mortgage arranged
Even when you redeem a mortgage in accordance with the rules,
outside the redemption period and switch to a new mortgage
with the same provider, you will probably be charged a redemption
fee.
Approximate cost: £30 - £40
Redemption fee - no new mortgage arranged
You will be charged more if you are moving to a new provider!
Approximate cost: £60 - £80
Affidavit swear
This is charged when the lender is required to swear an
affidavit in connection with mortgage arrears or some other
circumstance.
Approximate cost: £30 - £40
County court fee
This is charged when the lender provides information to
solicitors relating to county court rules.
Approximate cost: £25 - £30
County court re-issue fee
This fee will apply when county court papers are re-issued
within three or six months of the issuing of the original
information.
Approximate cost: £15 - £20
