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Mortgages - Costs Associated With The Mortgage


The excitement of buying a home should not divert your attention from the costs involved. On top of your monthly mortgage commitment, you may encounter some or all of these costs, depending on the route you choose to take:

Fee for mortgage advice

High-street lenders will tend to only advise on their own mortgage deals and explain the options. However, there are many advantages to be gained by seeking specialist advice from a financial adviser. Financial advisers can trawl the market and often access the best deals too. The cost of this service is covered in various ways. An adviser may charge you a fee as a percentage of your mortgage value, or as a set fee amount. Alternatively, commission is paid by the lender directly to the mortgage adviser. Often, an adviser is paid by a combination of the two. 

Lenders arrangement fee

Lenders will usually charge an administration fee to cover the cost of setting up your mortgage or to reserve a fixed rate or fixed term deal. The amount will vary between lenders.  If money is tight, you may be able to add this fee to your mortgage. Do bear in mind, however, that you will be charged interest on this fee amount for the entire term of the loan.

Valuation fee

Lenders also need some degree of security when putting up large sums of money. To check the property you are buying is worth what you say it is, they will insist upon a basic independent valuation of the property.  This is known as a mortgage valuation.  Expect to pay for the cost of this valuation at the very beginning of the mortgage application process. 

Higher lending charge

Rising house prices means that borrowers increasingly need to stretch their finances even more, often with little equity to put down as a deposit. If you wish to borrow more than 70% to 75% of the property value, the lender usually applies an additional charge above the advertised rate.

Early repayment charge

Mortgage lenders would ideally like you to stick with them for the long haul. If you manage to repay your mortgage early, or want to switch mortgages before the end of a special rate term, such as five year fixed rate, they will be losing out on forecast revenue. Consequently, they will apply an early repayment charge. 

Early repayment charges are common with mortgages that offer a special rate or deal, such as fixed rates, capped rates or discounted rates.  The early repayment charge usually applies during the set special rate or deal term.  But be careful. Some lenders may lock you in, even after the deal has expired. The small print could tie you to a lenders standard variable rate for a specific period of time. A switch could result in a hefty early repayment charge.

Your home may be repossessed if you do not keep up repayments on your mortgage.

We typically charge £395 for arranging a residential mortgage payable on completion (if the fee is higher than this we will confirm it to you at the outset), we will also recieve commission from the lender.

For a Buy to Let Mortgage we typically charge 0.5% of the mortgage amount, the exact amount will be confirmed to you at the outset

For commercial mortgages we typically charge bewteen 0.5% and 1%, the exact amount will be confirmed to you at the outset

The information contained below does not constitute advice or a recommendation and the user should seek advice if in any doubt prior to making an application


 
Mortgage Brokers In Harrow
 
Contact Annis Financial
Contact Annis Financial
Do you require expert mortgage advice?
Call us today on 020 8861 0719 
Email. annisfinancial@aol.com
We are always happy to help and assist you... 

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YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

For residential mortgages we typically charge a fee of £395, the fee will be agreed with you before we commence any work

For Buy to Let mortgages we typically charge a fee of £495. For commercial mortgages we typically charge a fee of 0.5% to 1% of the mortgage and this will be confirmed to you at the outset, for example on a mortgage of £100,000 a 0.5% fee equates to £500 and a 1% fee equates to £1,000

The Financial Conduct Authority does not regulate conveyancing and some aspects of buy to let mortgages.

Annis Financial Management Ltd is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register No. 300242 at *www.fsa.gov.uk/register/home.do
Annis Financial Management Ltd is a credit broker and not a lender

Annis Financial Management Ltd registered in England & Wales No. 5018735. registered address 116 Elm Drive, Harrow, HA2 7BZ The Guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.

Where you have a complaint or dispute with us and we are unable to resolve it to your satisfaction then you may have access to the Financial Ombudsman Service. Please see the following  link for further details *http://financial-ombudsman.org.uk

*You are leaving the web site of Mortgage Advisers in Harrow and about to view the content of an external website, Annis Financial Management cannot be held responsible for the content of external web sites.


Call us today on 020 8861 0719
Email. annisfinancial@aol.com

Annis Financial Management Ltd
116 Elm Drive Harrow, London HA2 7BZ
Phone: 020 8861 0719
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