Mortgage Charges – Effective 1st November 2019
The Hanley Economic Building Society is closely involved in the mortgage industry’s initiative with the Council of Mortgage Lenders and Which? to make our fees and charges easy for you to understand. Our tariff of charges fully reflects the initiative’s good practice principles. The same document is being used across the industry to help customers compare mortgages. When looking at the fees other firms charge, you may notice some that don’t appear in our tariff (below). This means we don’t charge you these fees.
|When you will pay this charge||Name of charge||What the charge is for||How much is the charge?|
|Before your first monthly payment
These are the fees and charges you may have to pay before we transfer your mortgage funds.
|Account fee||Creating and managing your mortgage account. This might also include closing your mortgage account when your mortgage ends – the product details for your mortgage will tell you if this is the case.||Please refer to the individual Product Sheet|
|Application fee||Assessing and processing your application (even if your application is unsuccessful or you withdraw it).||Please refer to the individual Product Sheet|
|Funds transfer fee||Electronically transferring the mortgage funds to you or your solicitor. Guaranteed within 2 hours||£35|
|Legal fee||You will normally instruct a solicitor to act on your behalf in connection with your home purchase transaction. You may be required to pay their legal fees and costs as part of their work on your behalf. These fees/costs are normally charged by the solicitor, directly to you unless we tell you that we will contribute to the legal costs as part of your product deal.||Please refer to your solicitor|
|Product fee||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. It might be a flat fee, or a percentage of the loan amount.||Please refer to the individual Product Sheet|
|Re-inspection fee||If your mortgage is released in stages and you’re using it to renovate your home, this covers the new valuation we need to do after the work’s carried out.||Please refer to our Residential Valuation Fee Scale|
|Valuation fee||The lender’s valuation report, which is used to calculate how much it will lend to you. This is separate from any valuation or survey of the property you might want to commission.||Please refer to our Residential Valuation Fee Scale|
|Revised Mortgage Offer||This fee will be charged if you request a change after we have issued the mortgage offer.||£60|
|If you ask us for extra documentation and / or services beyond the standard management of your account.||Duplicate/interim interest statement fee||Requesting a copy of previous mortgage statement or an interim statement of your account as it stands. It might be paid by you or another lender.||£20|
|Request for legal documentation fee||Any original documents relating to your mortgage, e.g. title deeds that you ask for.||£25|
|Consent fee||If you want to have a second charge registered against the property you will need to pay for our consent when we agree for the charge to be registered.||£25|
|Duplicate request for certificate of interest paid (for each year) fee||Requesting a copy of previously issued certificate of interest paid.||£20|
|Request for redemption figure||One redemption statement will be supplied free of charge. If another statement is requested within 12 months a charge will be made for supplying the statement.||£30|
|If you change your mortgage
NB If you change to a new mortgage product, before your first monthly fees may also apply at this time
|Early repayment charge (changing your mortgage)||You may pay this if:
· You overpay more than your mortgage term allows;
· You switch mortgage product or lender during a special rate period (e.g. while you’re on a fixed or tracker interest rate)
|Please refer to your individual Mortgage Offer|
|Change of term fee||Extending or reducing the remaining term of your mortgage.||£50|
|Change of repayment method fee||Transferring all or part of your mortgage from a repayment to an interest-only basis.||£60 unless done as a temporary forbearance measure|
|Partial release of property fee||Payable if you want to remove part of the property or land from the mortgage. It covers administration costs, including sealing the relevant legal deed and issuing letters of consent.||£70|
|Change of parties administration fee||Our administrative costs of adding or removing someone (a ‘party’) from the mortgage.||£125|
|Consent to let fee||If you want to let your property but don’t have a buy-to-let mortgage, you’ll pay this for each ‘consent to let’ agreement, where we agree to you letting out your property for a set period within your existing owner-occupier mortgage.||£100|
|Consent to let extension fee||Payable if the Society has agreed to extend their ‘consent to let’ period on your existing owner-occupier mortgage||£25|
|Request/consent for grant application||A charge is made for supplying detailed mortgage information to the relevant authorities in order for an improvement grant application to be considered||£50|
|Giving you a reference||Charged if another lender asks us for a mortgage reference, such as how you have managed your mortgage account with us. We will only supply this if you have given us permission.||£25|
|If you are unable to pay your mortgage
These are the most common charges you may have to pay if you fail to keep up with your mortgage payments. Some charges, for example, those covering unpaid / returned direct debits or cheques, occur at the early stages of your inability to pay (arrears). Other charges, for example, relating to our repossession of the property, may apply later in the process and will be dependant on your circumstances.
|Unpaid / returned direct debit or cheque||Payable when your nominated bank rejects a direct debit collection or your payment by cheque is returned unpaid by your bank.||£19 DD
|Arrears fee||Charges may be applied in respect of your account if you fall behind with your payments.||£25|
|Arrears visit||Charges may be applied should the Society deem it necessary to make a personal visit to you and/or the mortgaged property||Variable|
|Serious Arrears||This administration fee is applicable where solicitors are involved in serious arrears cases.||£125|
|Appointment of a Receiver||This administration fee is applicable when the Society has to appoint a receiver.||£125|
|Possession Administration Fee||The fee is charged on redemption of an account in possession i.e. when the property is sold. This is to cover the administrative costs around taking the property into possession and for the disposal of the property||£250|
|Unpaid Ground Rent and /or Unpaid Service Charges||A charge will be made for collecting unpaid Ground Rent or Service Charges. If your property is Leasehold we need to manage outstanding Ground Rent or Service Charges. This fee covers the cost of communication to you and your landlord. In addition, if the Ground Rent or Services Charges remains unpaid we will debit your mortgage account to pay the outstanding amount. Please note the fee is applicable for the unpaid Ground Rent and Service Charge if both are unpaid then the charge will be made for each event.||£50|
|Breach of Lease||A charge will be made where the Society is made aware that you have breached the conditions of your lease.||£50|
|Ending your mortgage term||Early repayment charge (ending your mortgage)||You may be charged this if you repay your mortgage in full before the mortgage term ends.||Please refer to your individual Mortgage Offer|
|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
· 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 a ‘redemption’).
You may be charged a separate fee by your solicitor or licensed qualified conveyancer for their work relating to redemption of the mortgage and discharge of security.