There are no fees to pay to secure ‘ Indicative Terms’ from the mortgage provider – we offer this service free of charge. Once the Indicative Terms are accepted by the client it will then be necessary to gather the further information needed for the full application to be submitted and also schedule and pay for any valuation report(s) needed by the underwriter.
After the valuation reports confirm a positive and viable loan proposition the lender will issue the formal offer subject to legal due diligence. Some lenders will require their own legal costs to be covered by the client though it may be possible for the clients / lenders solicitor to represent both parties. In addition to the interest charged on the mortgage or development loan there will generally be a set up fee of between 1% and 3% of the loan.
Depending on the type of product taken, a Broker Fee for acting on your behalf to obtain the finance is usually charged at a rate of 1% of the amount to be borrowed. This becomes payable once we have obtained the full finance offer for you post underwriting and valuation. If you would like to defer the payment until the finance transaction completes to assist with your cashflow we can potentially consider this on a case by case basis but if the transaction subsequently falls through the Broker fee will still be payable to us in that event. We will always advise you of the exact Broker fee to be charged once we have obtained indicative terms and if a commitment fee is to be charged on our appointment this will be fully disclosed to you before you proceed.
Leave A Comment