Remember Me
forgot your password?

Mortgage Fees Explained

When you are looking for a mortgage there are many factors you need to consider. One important area is the fees involved with your application. These often make up a substantial amount of your expenditure so it’s important to know what you are getting for your money.

Valuation Fees

When applying for a mortgage you will normally be required to pay for a valuation of the property to be carried out on behalf of the lender. If the mortgage lender arranges the valuation for you an administration fee will usually be added to the cost.

This valuation is not a detailed inspection and for your own peace of mind you may want to opt for a Housebuyers Report or a Structural Survey. These are conducted for you, the applicant, and provide far more details; they are of course more expensive.

Booking and Arrangement Fees

A booking fee is normally paid when you make your mortgage application. If a mortgage offer has limited funds available a booking fee is payable in order to reserve the finance with the lender. In most cases your booking fee is non-refundable and you will forfeit this money should your mortgage application be cancelled.

You will normally be faced with an arrangement fee upon the completion of your mortgage application to cover the lenders administration expenses. Many lenders allow you to add this fee to your mortgage to avoid the immediate expense.

Legal Fees

Any mortgage application will require a solicitor or conveyancer to be involved (and paid). These legal fees cover the costs of a legal representative acting on your behalf during your mortgage application.

In return for your legal fees your solicitor or conveyancer will be responsible for arranging transfer of title deeds, registering your property with the Land Registry and conducting surveys to ascertain the state of the property.

You will generally find legal fees are more excessive when purchasing a house than for a remortgage due to level of involvement required.

Daniel Keogh

Visit the mortgage blog to find out more about mortgages, how they work and how to find the best deals.

Rate this Article: 1 / 5 stars - 2 vote(s)
Print Email Re-Publish

Add new Comment



Captcha

  • Latest Mortgage Articles
  • More from Daniel Keogh

Reverse Mortgage Loans Are Planned For Senior Citizens

By: Juhani Tontti | 29/11/2009
Although the reverse mortgage loans have been available for senior citizens for quite many years, many hear about them for the first time. In this article I will describe you the reverse mortgages pros and cons.

Where to Turn For a Principal Reduction These Days? Not Loan Modifications!

By: Megan McGinnis | 29/11/2009
Loan modifications don't offer principal reductions and short sales mean the home owner has to move out. Where do you turn to get a principal reduction and stay in your home? These questions answered and more...

Writing a Persuasive Loan Modification Hardship Letter

By: Walter Sigmore | 28/11/2009
It is a very probable reality that in these times of economic uncertainty, your financial capability is strong enough to face the many pressures of daily life. One of those pressures is the likely chance of losing your house. This is where a compelling loan modification hardship letter comes into play. It is a legal letter in which you describe your current financial hardships to your lender and state the steps that you have are taking in order to solve your financial problems.

Bank of Americas New Mortgage Refinance and Modification Options for All Homeowners

By: MPetrone | 28/11/2009
Bank of America is participating in President Obamas “Making Home Affordable” plan. This mortgage bailout program will help millions of homeowners get a mortgage refinance or modification which will save them money, their home from foreclosure, or both. Homeowners all across the country can use Bank of America and these new programs for themselves. Here is some help getting started.

Reverse Mortgage and Live Rich

By: Randal Fleming | 28/11/2009
Do you need to finance a home improvement? Pay off a current mortgage? Supplement your retirement income? Look after health-care expenses? If this is so a reverse mortgage enterprise will perform miracles for you. With a reverse mortgage, you can turn the value of your place into money with no necessity to pay back your loan each month. When Is It Repaid? A reverse mortgage is a loan taken out against your house. The smartest thing about it is that you don't need to make rep...

Get 2% Interest Rates from Obamas Mortgage Bailout

By: MPetrone | 28/11/2009
Homeowners all across the country are struggling to make ends meet. Many homeowners are going through financial problems, and are finding it very hard to make their mortgage payments. This has led to an all time high foreclosure and mortgage default rate. Because of this, President Obama announced his “Making Home Affordable” plan, to help homeowners.

FHA 203k Mortgage, FHA 203K home loan

By: FHA home loan Lender | 28/11/2009
For the Florida home buyer the FHA 203K mortgage program can simplify the purchase of a home, making financing easier and less expensive than a conventional mortgage loan product. Some highlights of the Florida FHA loan program include:

Benifits to the FHA mortgage outweigh any other mortgage loan

By: Florida Mortgage | 28/11/2009
Benefits of FHA-insured mortgage loans include lower costs (federal backing makes for competitive interest rates); smaller down-payment requirements, FHA loans require only 3.5 percent down); and easier qualification (with FHA insurance, Florida lenders are often more willing to craft loan terms that make it easier for you to qualify).

Broadband – Getting More From your Internet Provider

By: Daniel Keogh | 26/11/2007 | Internet
An article covering how to get the best broadband deal. With a range range of broadband packages now available choosing the right one can be difficult. Learn what factors you need to consider and how to compare a wide range of deals.

UK Car Insurance Aggregators on the Rise

By: Daniel Keogh | 18/09/2007 | Insurance
The number of sites providing car insurance comparison in the UK continues to rise at an incredible rate. This article looks at the latest newcomer to the market and what impact this could have for customers.

Get the Right Car Insurance When Driving Abroad

By: Daniel Keogh | 04/09/2007 | Insurance
Before deciding to take a driving holiday abroad it is vital to get the right level of car insurance. This article covers why you may need to upgrade your car insurance policy and the options open to you.

Cut Down your Car Insurance Costs

By: Daniel Keogh | 04/08/2007 | Insurance
Everbody dislikes car insurance, especially the long tedious process of finding a decent quote. Learn how you can cut down on the time you waste searching round and still find the best deal.

Submit Your Articles Free: Signup
Article Categories




Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2008 Free Articles by ArticlesBase.com, All rights reserved. (0.40, 5, w1)