Tariff of Charges

Tariff of Charges – Effective from July 2010

This leaflet sets out our current Tariff of Charges. The Tariff is updated from time to time and a copy sent to you each year with your annual account statement. Where the services are subject to VAT this is included as noted.

We reserve the right to amend these charges in line with any change in the rate of VAT.

This document does not include the interest rates we apply to borrowing.

Should you require any additional information, please do not hesitate to contact us.

A. Mortgage valuations

In order to lend on a property, we require a valuation to be carried out. We use a panel of valuers. The standard fee for a residential valuation is £1 for every £1,000 of the property value plus VAT. For example, a property worth £500,000 would be subject to a valuation fee of £500 plus VAT. However, these rates are negotiable for higher value properties.

Commercial and development lending valuations are charged at local rates. Quotes will be obtained on request.

B. Legal Fees

Your solicitor will provide our solicitor with a cost undertaking for the payment of their legal fees on instruction. The costs of legal work in relation to residential lending facilities are usually calculated at 0.35% to 0.5% of the total loan amount plus VAT and disbursements. This is subject to a minimum fee of £500 plus VAT. Corporate legal fee quotes will be available on request.

C. Finance set up fee

This is the administration charge we apply for setting up your lending facility and is £200. This is debited to your loan facility and only becomes payable on completion.

D. Release of Deeds

On repayment of your loan, our solicitor will charge an administration fee of £150 plus VAT for the release of the deeds per property.

E. Information and statement fees

You will be provided with two statements of account per year, free of charge. Thereafter you will be charged £20 for a statement of account when you request it.

F. Insurance

It is a condition of our lending that you have satisfactory buildings insurance in place. In the event that you are unable to provide satisfactory cover we will insure the property under our block policy for fire damage only. A monthly premium will be debited to your account, the exact amount will be confirmed at the time.

Life insurance is a requirement of some loans. If life insurance is placed on our block policy you will be charged at a rate of 0.1% of the loan amount plus Insurance Premium Tax (“IPT”). The specifics of the policy requirements will be sent to you in event that this is required.

G. Arrears fees

Returned Cheque or Direct Debit Fee – We will charge £35 on each occasion an interest payment, when correctly presented, is not met or is returned unpaid.

Please note: If your mortgage falls into arrears and we commence litigation action, you will be charged a fee of £250. This will be debited to your account on redemption. A detailed Arrears and Litigation Tariff of Charges will be sent to you by our solicitors before litigation commences.

This fee will not attract interest or charges.

H. Bank Charges