Costs
As well as your monthly repayments there are a number of other costs associated with taking out a mortgage. Download our tariff of charges (pdf).
Valuation
In order to offer you a mortgage, we need to be sure that the property you want to buy provides enough security to cover our loan to you. To do this, we may need one of our panel of valuers to carry out a valuation on our behalf. You will be asked to pay a valuation fee, which is based on the purchase price or estimated valuation, with your application.
If your mortgage application does not proceed, we will not be able to refund the valuation fee if a valuer has already been instructed.
The purpose of the valuation report is purely to allow us to be sure we can proceed with the loan secured on the property. It does not provide you with any information about the condition of the property and does not replace your need to arrange an appropriate survey. We strongly recommend that you do arrange a survey before you go ahead with the purchase. You will be given the opportunity on the mortgage application form to request our valuer to contact you to explain the different types of report available and their costs.
Valuation costs are shown on the next page.
Valuation costs
| Purchase price/estimated valuation | Fee payable |
|---|---|
| Up to £75,000 | £100 |
| £75,001 to £100,000 | £125 |
| £100,001 to £150,000 | £150 |
| £150,001 to £200,000 | £175 |
| £200,001 to £250,000 | £200 |
| £250,001 to £300,000 | £225 |
| £300,001 to £350,000 | £250 |
| £350,001 to £400,000 | £275 |
| £400,001 to £450,000 | £300 |
| £450,001 to £500,000 | £325 |
| £500,001 to £600,000 | £460 |
| £600,001 to £700,000 | £560 |
| £700,001 to £800,000 | £625 |
| £800,001 to £900,000 | £685 |
| £900,001 to £1,000,000 | £750 |
| £1,000,001 to £1,500,000 | £1000 |
| £1,500,001 to £2,000,000 | £1200 |
| £2,000,001 to £2,500,000 | £1500 |
| £2,500,001 to £3,000,000 | £1900 |
| Over £3,000,000 | By negotiation |
Other costs follow
Administration fee
You will need to pay an administration fee when you apply to cover the costs we incur in processing your application. We explain how much this fee is with the details of each mortgage product. If you do not proceed with your application, we will only be able to refund your fee if we have not already processed your application.
Product fee
On some of our products, such as fixed rate mortgages, we charge a product fee to cover the costs of arranging the funds for you. This fee is payable when you apply. We explain how much this product fee is in the details of any product on which it is charged. If you do not proceed with your application, we will only be able to refund this fee if we not arranged the fixed or discounted rate funds
Solicitor’s fees
If you are buying a property you are responsible for all legal costs associated with setting up the mortgage. This is in addition to the conveyance costs. If you choose a solicitor who is on our panel, we can usually instruct the same solicitor who will then act for us as well as for you. This will save you money. Some solicitors will quote a fee in advance, while others may charge a standard fee, though they may have to charge more if the conveyance process is more complicated than usual. Their bill will include other expenses, such as stamp duty, land registry charge and local authority and other search fees.
References from other lenders
If you already have a mortgage with another lender, we may ask that lender to provide a reference. Your lender may charge you for this.
CHAPS fee
When your mortgage is due to complete your solicitor will ask us to release the funds through the Clearing House Automated Payment System (CHAPS). There is a charge for this service, which will be specified on our fees and charges sheet which you will receive with your Key Facts Illustration (KFI). It will be deducted from the amount transferred to your solicitor.
Accrued interest
We begin to charge interest on your mortgage from the day that we are told is your completion date, on a monthly basis. This accrued interest for the period from completion to the end of the month in which completion happens is added to your mortgage account. It is payable with your first monthly payment. Shortly after completion, we will write to you to let you know the amount of accrued interest charged.
Other miscellaneous costs
There are some other costs associated with the administration and servicing of your mortgage account, which may occur before or after completion. These are outlined on our fees and charges sheet which you will receive with your Key Facts Illustration (KFI).
