Notwithstanding any charges notified with your recommendation or covered elsewhere in this brochure, you should be aware that you may be liable for certain other standard charges. Namely:
1. Buildings and Contents Insurance
Insuring your home is essential. All mortgage lenders insist you have adequate buildings insurance, in order to safeguard the money they are lending. Most lenders now do not insist on your taking their own block insurance. They do, however, reserve the right to charge an administration fee (typically £25) for checking that your policy is adequate if you elect to arrange insurance elsewhere.
2. Legal fees
Unless the scheme recommended specifically states that the product carries free basic legal work, you will be liable to pay any such costs in relation to your mortgage application. The solicitors acting would normally be working on both your and the mortgage lender’s behalf and you would ordinarily be responsible for all costs. If the recommendation carries free basic legal work, please note that this covers only the very basic work. The cost of additional work carried out on your instruction or incurred as a result of unusual circumstances will be your responsibility. If you have any doubts as to the implications of this, please call us.
3. Release fee (sealing fee)
An administrative charge imposed by mortgage lenders for releasing the title deeds of your property when you redeem your mortgage (repay in full). This fee is payable because remortgages involve redeeming the mortgage with one lender and transferring it to another. It varies considerably from lender to lender: it can be up to £300 – and although it is not strictly speaking an early repayment charge, borrowers may well feel penalised by fees at the higher end of the scale.
