David Tonge Financial Services

David Tonge Financial Services
Tel. 0161 976 2016
Mobile: 07957 324631
Fax: 0161 972 0113.
davidtonge@ntlworld.com

Friday 21 November 2008

Fees

Any fees associated with the mortgage will be included within a personal 'key features illustration'.

The more common of these fees of these fees are detailed below with a general explanation, it is usual for many lenders to waive one or more of these charges as an incentive.

APPLICATION FEE covers the administrative expenses incurred whilst processing an application. For example, the staff time involved with taking up references, credit checks, voter’s roll checks and any valuation charges that apply. Some of this fee is usually deemed non-refundable from the outset and once the application process is well advanced, it is usually considered entirely spent. Your adviser should explain the amount and terms of the fee required.

EXISTING / PREVIOUS LENDER REFERENCE CHARGES may apply if you already have a mortgage and a reference is required from that lender, as they will usually charge for providing this reference. This can often be avoided if annual mortgage statements and bank statements prove satisfactory conduct.

BOOKING AND/OR ARRANGEMENT FEES may be charged for specific products and be payable in advance, added to the loan or deducted from the advance on completion. Your adviser should make you aware of any such fees from the outset.

HIGHER LENDING CHARGE The lender may impose a charge if the amount required is higher than a certain percentage of the property value, and will either deduct it from the advance or add it to the loan. Your advisor should make sure that you know whether the charge will apply, and if so, the amount and method of repayment.

This money gained from this fee will be used by the lender to indemnify themselves against any financial loss they may experience should they have to repossess the property due to payment default(s). Although you pay this fee, it will only benefit the lender or any insurer involved, in trying to recover all or part of any loss involved.

Such cover will not protect you if your property is subsequently taken into possession and sold for less that the amount you owe. You will also remain liable to pay all the sums owing, including arrears, interest and your lender’s legal fees and interest - that will continue to mount up as long as the mortgage is outstanding.

BROKER / COMPLETION FEE can be charged to cover the service provided by an independent adviser, this may be waived or reduced depending on the mortgage arranged.

Remember. Mortgages are personal to you - your circumstances, your lifestyle and your budget.

Do you really want to make the biggest purchase of your life without talking to David Tonge Financial Services first

Call us now 0161 976 2016 or 07957 324631

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