guide to fees

You may have to pay some or all of the following fees to us when you are applying for a mortgage.  This list is not exhaustive - there may be other costs too, depending on your circumstances.

Mortgage product fee or completion fee
This fee will depend on the mortgage product which you choose. You should refer to our individual mortgage products for more information.  Many of our mortgage products do not charge a fee or allow you to add the fee to your mortgage, so you do not have to pay it up front.  

Valuation fee
We will carry out a valuation of your property to assess whether or not it provides enough security for your mortgage.  The valuation fee will vary depending on the price of the property. Many of our current mortgage products offer a free valuation if you live within County Durham, the Tees Valley or parts of North Yorkshire.  Click here to find out more about the different types of valuation.

Higher lending charge
If the amount you want to borrow is more than 80% of the value of the property, your mortgage would be ‘high loan to value’ and we may ask you to pay a higher lending charge.  We use this to purchase a mortgage indemnity, which provides cover to protect our interests if you fall behind with your mortgage payments and we had to take possession of your home and sell it.  Click here for more information.

Administration fees
Once your mortgage is up and running there may be some ongoing administration fees. You can find a full list of our current administration fees by clicking here.

When you are buying a home, you may also have to pay the following costs.  These fees are payable to a solicitor or other company.  You do not pay them to us.

Legal fees
You can choose either a solicitor or a licensed conveyancer to carry out your legal work.  There are no set fees for this and it pays to shop around.  Some providers will charge a flat rate while others will charge a percentage of the property price.  Your solicitor or conveyancer will also carry out searches with the local authority, which you pay for.

Mortgage broker’s fee
If you use a mortgage intermediary to arrange your mortgage, they will usually charge you a fee to do this.  Most will charge a flat fee or a percentage of the property price.

Stamp duty
This is a tax paid on the purchase price of your new home on properties over £125,000.  It is currently 1% on properties up to £250,000, 3% up to £500,000 and 4% over £500,000.   

Estate agent's fee
If you are selling a property, you will usually have to pay an estate agent to sell your current home.  Most will charge a flat fee to do this or a percentage of the amount borrowed.

Moving costs
You may have to pay for a removal firm or van hire for the day of the move.  Some service providers will charge for disconnection and reconnection at your new property.  You may also want to pay for your mail to be redirected to your new address. 

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