Our mortgage fees and charges
We’ve laid everything out clearly and simply, so you'll know exactly what to expect.
Booking and Product fees
Booking fee (sometimes called an Application fee or an Arrangement fee). This is a charge made for processing your application (even if your application is unsuccessful or you withdraw it). At Tesco Bank this is paid upon completing your application and is a non-refundable fee.
Details of any fees payable will be found on your Mortgage Illustration.
This is charged on some mortgages as part of the deal. It can be paid up front or added to the total mortgage amount. If you add it to your mortgage, you’ll pay interest on it at the same rate as the rest of your borrowing. This is usually a flat fee, but could be a percentage of the loan amount.
Paying your fees
You can pay your fees securely online or over the phone using a debit or credit card.
Early Repayment Charge (ERC)
You may have to pay this if:
- You overpay more than your mortgage terms allow;
- You switch mortgage product or redeem your mortgage during your initial rate period .
Redemption administration fee
Some lenders call this a Mortgage exit fee. You may have to pay this if:
- Your mortgage term comes to an end;
- You transfer the loan to another lender; or
- You transfer borrowing from one property to another.
This is payable either at the end of the mortgage term, or before the end of your mortgage term if you transfer the loan to another lender or another property (known as ‘redemption’). You may be charged a separate fee by your solicitor or licensed or qualified conveyancer for their work relating to redemption of the mortgage and discharge of the security.
Valuation and Legal fees
The lender’s valuation report, which is used to calculate how much they will lend you. This is separate from any valuation or survey of the property you might want to commission. There are other homebuyers or structural survey options available to you at a cost and there may be different approaches in different parts of the UK. Some mortgages offer free valuations – the product details for your mortgage will tell you if this is the case.
The standard valuation fee is outlined in:
Legal and conveyancing fees
House Purchase: When you buy a new home you need to pay a conveyancer to complete the legal work required. They’ll carry out all the necessary legal checks on the property, make sure that you’re properly registered as the owner and ensure that all the necessary mortgage documentation is in place.
Remortgage: If you're remortgaging with us we'll meet the standard legal costs. We instruct Countrywide Solicitors Panel to act for us in remortgage cases and they will get in touch with you.
If any additional legal work is needed - for example, adding/removing a party from the title or if your property is currently on the Sasine Register in Scotland - then you'll need to pay for this yourself. Also, if any non-standard costs are incurred - for example, fees for meeting notice requirements to landlords of leasehold properties - you'll need to pay for these. Countrywide Property Lawyers will advise you of any such additional costs. You'll also need to pay for the legal costs incurred where, for whatever reason, you don't complete your mortgage.
Unencumbered and unregistered properties: If you don’t have a mortgage on your property at the moment but want to release equity, or if your property is not registered with the land registry, we’ll instruct Countrywide Property Lawyers to act on our behalf but be aware that you’ll need to meet the legal and valuation costs yourself.
Once your mortgage is set up, there could be costs involved if you decide to make any changes or request additional information about your mortgage.
This could happen if you decide to change the term of your mortgage, for example, or if you ask us for an extra copy of your mortgage statement.
The servicing costs that could apply are outlined in:
If you miss a payment or your account is in arrears, you might have to pay a charge, or charges.
If you’ve missed a payment, interest will continue to be added to your mortgage account. This means your future monthly payments could be higher.
If you are having financial difficulties, get in touch with us as soon as you can, so we can try to help you get back on track.
The fees that may be applicable are outlined in:
Your home may be repossessed, as a last resort, if you do not keep up repayments on your mortgage.
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Call 0345 217 2050* to chat about new policies.
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