Fees added to loan
- a reference to the additional costs associated with arranging a mortgage such as indemnity guarantee premiums or arrangement fees, which can be incorporated into the amount you borrow. Fees which may be added vary with lender. Care should be exercised when the sum of the loan and any costs added to the loan may cause the total advanced to exceed a given loan to value ratio. In certain cases additional conditions may apply.
arrangement fee
- fee charged by a lender for setting up the loan. Normally payable upon completion but may sometimes be added to the loan.
booking fee
- fee charged by a lender to secure mortgage funds, payable at the time the loan application is submitted. Normally applies only to special offer loans, such as fixed or capped rates.
Conveyancing fee
- fee charge by a solicitor or licensed conveyancer for arranging the necessary legal work in transferring the ownership of a property. The total cost of the legal work also includes profit cost, stamp duty, land registry fees and disbursements.
Land Registry fees
- fee payable to the land registry to change an entry in their records following a transaction involving registered land. This can be following a change of ownership or just a change of mortgagee.
IGP fee
indemnity guarantee premium (IGP) -insurance premium which insures the lender against any loss of money if you default on your loan or get repossessed. This usually applies only if you borrow more than 70 per cent of the price asked for the property you are buying. Even though you have to pay for the insurance premium, you must remember that you are not covered by the insurance, the lender is.
Stamp Duty
- government land tax of 1% of the purchase price of a property charged on all property purchases over ?60,000.
Valuation fee
- fee paid by the prospective borrower for the lender's inspection of the property. Normally paid on application.
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fees added to loan
arrangement fee
booking fee
conveyancing fee
Land Registry fee
IGP
Stamp Duty
Valuation fee
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Introduction
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