Costs involved
Nicola Crozier • 28 Apr 2021It’s easy to underestimate the costs involved when buying a property.
Valuation fee
Lenders may ask you to pay the valuation fee. The type of valuation you choose will depend on factors such as the age and condition of the property.
Application/Arrangement fee
This is the costs your lender will charge you for arranging your mortgage. Some lenders will allow the fee to be added to your mortgage, but this means you will be charged interest on it over the term of the mortgage.
Legal costs and fees
The fees charged by a solicitor include the charge for conveyancing (the transfer of ownership of land), and the costs of legal registrations and miscellaneous costs (known as disbursements) such as Local Search fees and Land Registry fees. Some lenders may offer to finance some or all of the legal costs as an incentive.
Higher lending charge
If the amount you wish to borrow is greater than a certain proportion of the property’s value (typically 75%), you may incur a higher lending charge.
Early repayment charge (ERC)
Lenders may charge an ERC if you make an overpayment in excess of any stated limit, if the loan is repaid early or you remortgage during early repayment period. This can sometimes be a significant amount, so you should always check the terms in the offer letter from your lender.
Deeds release or exit fee
Lenders may charge a fee to release the deeds of a mortgaged property to you or a new lender.
Our advice fee
Before we get started, we will explain how we will be paid for arranging your mortgage.