If you are applying for a mortgage, you will incur certain costs. As well as the cost of using a legal adviser, you may also have to pay certain fees, such as
Before we can lend you money to buy your home, we need expert guidance on what the property is worth as security for us. To get that information we may instruct a valuer to visit the property and produce a written report. Alternatively, the value of the property may be assessed by using other valuation methods such as asking a valuer to carry out a quick check of the outside of the property (this is sometimes referred to as a 'drive-by' valuation). We may also assess the value of the property by comparing the details with those of other comparable properties in the vicinity using a specialist database.
All of these options have an associated cost and you will be asked to pay this cost before your mortgage completes, unless you have chosen one of our fee-assist mortgages to help with this cost.
If we need to instruct a valuer to visit the property, the cost of such a mortgage valuation will be worked out using a sliding scale-see the table below. This table also shows the cost of the more detailed HomeBuyer Report. The cost of a full Building Survey (which is also known as a structural survey) would be set by the surveyor who undertakes it for you, should you decide to commission one.
.|
Valuation not exceeding |
Mortgage Valuation | Home Buyer Survey and Valuations |
|---|---|---|
| £100,000 | £235 | £415 |
| £150,000 | £265 | £450 |
| £200,000 | £295 | £500 |
| £250,000 | £325 | £550 |
| £300,000 | £360 | £615 |
| £350,000 | £420 | £665 |
| £400,000 | £420 | £715 |
| £450,000 | £480 | £765 |
| £500,000 | £480 | £820 |
| £550,000 | £540 | £870 |
| £600,000 | £540 | £920 |
| £650,000 | £605 | £970 |
| £700,000 | £605 | £1,020 |
| £750,000 | £665 | £1,075 |
| £800,000 | £665 | £1,125 |
| £850,000 | £725 | £1,175 |
| £900,000 | £725 | £1,225 |
| £950,000 | £785 | £1,275 |
| £1,000,000 | £785 | £1,330 |
| £1,200,000 | £910 | £1,530 |
| £1,400,000 | £1,030 | £1,735 |
| £1,600,000 | £1,155 | £1,940 |
| £1,800,000 | £1,275 | £2,145 |
| £2,000,000 | £1,400 | £2,350 |
| £2,200,000 | £1,520 | £2,555 |
| £2,400,000 | £1,645 | £2,760 |
| £2,600,000 | £1,765 | £2,960 |
| £2,800,000 | £1,890 | £3,165 |
| £3,000,000 | £2,010 | £3,370 |
| £3,500,000 | £2,135 | £3,880 |
| £4,000,000 | £2,260 | £4,390 |
| £4,500,000 | £2,380 | £4,905 |
| £5,000,000 | £2,505 | £5,415 |
For a purchase price/valuation in excess of £5,000,000 contact the valuation department.
All the above fees include VAT and an administration fee of £90.
If a reinspection is required before all or part of the loan can be released, an additional fee of £40 will be charged for each re-inspection. This fee includes VAT and a £5 administration charge.
The mortgage valuation
The mortgage valuation is solely for our purposes so that we can be satisfied that the property provides sufficient security for us to lend.
Where the valuer has carried out a full internal inspection (but not where a drive-by or database valuation has been obtained), we will normally provide you with a copy of the valuer's report. If, however, you are taking advantage of one of our fee assist mortgages and we are refunding or paying the cost of the valuation, you may not receive a copy of the valuation report.
If you do receive a copy of the valuation report, please remember it is NOT A SURVEY and does not give any indication as to whether the property is worth what you are paying for it, nor does it provide a list of any repairs that may be needed.
In certain circumstances, as an alternative to a physical inspection of the whole of the property, we may, at our discretion, carry out a "Property Assessment". This may be based on database information, an external appraisal of the property by a valuer, or a combination of both. If we carry out a Property Assessment, a fee of £175 is payable by you, which includes a Society administration charge of £90. Applicants will not receive a copy of a Property Assessment Report.
We would strongly recommend that you obtain a more detailed inspection of the property. There are two types available, a Home Buyer Survey and Valuation and a Buildings Survey.
We can arrange to carry out the HomeBuyer Report (HBSV) for you at the same time as the mortgage valuation. Presented in a standard format, it is designed to focus on defects and problems which are considered urgent or significant. A HomeBuyer Report is suitable for properties which are of standard type and construction and appear to be in reasonable condition.
If you have already had an HomeBuyer Report carried out, it may be possible for us to ask your valuer to prepare a mortgage valuation report for us. If the HomeBuyer Report meets our initial criteria we will need to see a copy of the report and a copy of the valuer's Professional Indemnity Insurance certificate before we can decide if these are acceptable. If we agree to allow your valuer to prepare a mortgage valuation report for us, and he agrees to do so, there will be a fee of £135. This includes payment to the valuer for the report, VAT and an administration fee of £80.
This type of survey is suitable for all types of residential properties and, in particular, for period properties, those with extensive accommodation or those in a particularly poor state of repair although it can be done for any type of residential property. It is tailored to your requirements but will be very detailed, covering all defects whether major or minor. There is no standard or scale fee for a Building Survey but the cost will be significantly higher than for a HomeBuyer Report.
Although in most cases, the cost does not include a mortgage valuation, we can arrange for both to be carried out together. You will pay us a Standard Mortgage Valuation fee and pay the valuer the cost of the Building Survey direct. Before the valuer carries out the Building Survey, he will contact you to discuss the scope of the inspection and the cost.
If you have already had a Building Survey carried out, it may be possible for us to ask your surveyor to prepare a mortgage valuation for us. Please remember, however, that not all surveyors carry out valuations. If the Building survey meets our initial criteria, we will need to see a copy of the Building Survey and a copy of the surveyor's Professional Indemnity Insurance certificate before we can decide if these are acceptable. If we agree to allow your surveyor to prepare a mortgage valuation report for us, and he agrees to do so, there will be a fee of £135. This includes payment to the valuer for the report, VAT and an administration fee of £80.
Effective from 01/01/2011
| Mortgage-Related Fees | Fee |
|---|---|
| Transfer of equity | £200.00 |
| Letting fee | £100.00 |
| Copy mortgage statements | £10.00 |
| Breakdown of transaction fee | £15.00 |
| Certificate of interest/interest paid certificate | £10.00 |
| Subsequent redemption statements | £10.00 |
| Unpaid direct debit | £25.00 |
| Bounced cheque | £25.00 |
| Provision of a lender's reference | £84.00 |
| Consent to second/subsequent charge | £23.50 |
| Certificate of title | £10.00 |
| Deeds query | £12.00 |
| Deeds photocopying | £18.00 |
| Deeds production (inspection only) | £22.50 |
| Unpaid ground rent | £105.00 |
| Release of part security/approval of other legal agreements | £100.00 |
| Change of mortgage repayment method or term | £50.00 |
| Redemption administration fee (previously known as Redemption fee) |
Please refer to your offer document |
Product fees and Early Repayment Charges are detailed in the relevant product factsheet, the Key Facts Illustration document you should have received before your mortgage application was made, and in your mortgage offer. Your Key Facts Illustration and offer will also detail other fees payable such as mortgage fees, CHAPS fees and valuation fees.
| Arrears-Related Fees | Fee |
|---|---|
| Arrears Administration fee* | £35.00 per month |
| Third party debt counsellor's appointment | £96.00 |
| Missed third party debt counsellor's appointment | £60.00 |
| Administration of sale of property by the Society | £300.00 |
*If your mortgage account falls into arrears by two or more monthly payments, a monthly arrears administration fee will be charged, unless an arrangement to fully repay the arrears exists and this is being maintained.
Should the Society take action to enforce the terms of the mortgage, you will be responsible for payment of all fees, including legal fees, which will be added to your mortgage balance. The fees payable will depend upon the type of proceedings the Society has to take.
Further details of when fees apply can be found in our booklet 'How Your Mortgage Works'.
With some mortgage products, you may have to pay what's known as a product fee, the first part of which is non-refundable should your mortgage not proceed. The main reason for this is that with some mortgage products, we actually "commit" part of our available funds, so that these are not lent to anyone else. If your mortgage does not complete, we suffer a loss. Normally, you will be asked to pay part of the fee when you apply. You can then pay the remainder of the fee when your mortgage funds are released, or it can be collected as part of the monthly mortgage payment following the next annual review of your account.
Any additional fee due will be debited to your mortgage account on completion, but can be paid by you anytime. Because we calculate interest on your mortgage daily, the earlier any fees, such as the product fee are paid, the less interest you will pay.
Any unpaid fees will be recovered through your usual monthly payments over the remaining term of your mortgage. Interest, on a daily basis, will be charged on any fees that you do not pay upon completion. Details of any product fee we charge for each of our mortgage products is contained in our current mortgage range section.
When you take out a mortgage, you agree to repay all of the money that you owe under that mortgage. If you fall behind significantly with your mortgage payments, although we will work with you to help you manage your circumstances and arrears, ultimately we may have to repossess your property and sell it.
Following repossession, when the property is sold it may not achieve a sufficient amount to cover your outstanding mortgage, resulting in a shortfall.
Where we are lending a high proportion of the purchase price or valuation (whichever is the lower), referred to as the Loan to Value (LTV) there is a greater risk of a shortfall and therefore loans like this represent a bigger risk to us. In order to reduce the increased risk to us of these higher LTV loans we may ask you to pay a Higher Lending Charge (HLC). Please note however that even if you pay an HLC you would still remain responsible for repaying all the money you owe under the mortgage including any shortfall.
| LTV | HLC payable? | Who will pay the HLC? |
|---|---|---|
| Up to 90% | No | N/A |
| 90.01% - 95% | Yes | You |
If your loan is above 90% LTV the amount of HLC payable by you will be detailed in your Key Facts Illustration.
However, as our maximum LTV varies, we may not currently lend or have certain products available, at or above 90% LTV, therefore please contact us for confirmation of our current LTV limits.
Barnsley Building Society and the Barnsley are trading names of Yorkshire Building Society. Principal office: Yorkshire House, Yorkshire Drive, Bradford BD5 8LJ.
Yorkshire Building Society is a member of the Building Societies Association and is authorised and regulated by the Financial Services Authority and are entered in the FSA register and our FSA registration number is 106085.
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