Other Mortgage Costs
Repaying your mortgage
When you take on a financial commitment as big as a mortgage, it’s important to fully understand all the costs involved. Here you can see how mortgage costs are calculated and what your commitment means.
Interest
Interest is the cost to you of borrowing
a lump sum of money. We quote interest as an APR (Annual Percentage
Rate), which takes all the standard costs into account over
the term of the mortgage and makes it easier to compare the
costs of different mortgages.
UCB Home Loans calculates interest on a daily basis from the
day we send your mortgage advance to your solicitor.
Valuation Fees
When you apply for your loan
with us, we will charge you a valuation fee based on the value
of the property. This includes a processing charge of £100.
This valuation is principally for mortgage purposes and although
you will receive a copy, you may also want to consider one
of the following options before buying a property:
Homebuyer report: This gives you an expert
opinion on the quality and condition of a property and recommends
any further investigations where necessary. Costs from an
independent provider usually start at around £400, but
you may be able to get a better deal if you combine it with
your mortgage valuation through us.
Full building survey: This gives you a more
in-depth survey on the condition of a property and highlights
any defects.
Administration
Charges
To set up your loan, you will also
need to pay an arrangement fee* which is automatically added
to the balance of the loan or can be paid upfront if you prefer.
A funds release fee of £35 is also payable on completion.
Over the life of your mortgage, you may also incur additional
charges. For example, if you delay a payment beyond the agreed
date or if you need to make changes to your loan.
But please remember that we're here to help. So if your circumstances
change, call us straightaway and we can discuss the options
available to you.
At the end of your mortgage, you will need to pay a Redemption
Administration Fee to release our charge.
Please see our Guide
to Administration Charges for full details of these charges
and when they apply.
*UCB Home Loans arrangement fees
for existing customers switching mortgage product.
Legal expenses
You will need to cover the costs of a solicitor or licensed conveyancer to carry out the legal work relating to your loan. For a straightforward purchase, you should budget for about £250, although you need to check the exact fee with your solicitor.
When buying a property, you also need to budget for land registry charges, local authority searches and the necessary stamp duty. Your solicitor should be able to give you the costs of these.
Early repayment
charge
If you have a Tracker or Fixed
rate mortgage and you repay part or all of your loan before
the end of the benefit period, you may need to pay an early
repayment charge on both the loan and any overpayments you
have made. To make sure you know your commitments, our terms
are clearly set out in your mortgage offer. These charges
will also apply if you change your mortgage from one type
to another within your benefit period.
An early repayment charge does
not apply to overpayments when you regularly pay more than
your agreed amount subject to any product specific limit detailed.
Overpayments will reduce the amount of interest you are charged,
but do not automatically reset your monthly payment –
instead they can help you to pay off your mortgage early.
Arrangement Fees
Arrangement fees vary depending on product, please contact an adviser for specific product details.
Customers moving home should contact an adviser for details of the appropriate fees on:
0845 950 1500
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