Broker Fee: If using an HMO mortgage broker, you can usually expect to pay a broker fee. For standard HMOs, brokers tend to charge a flat fee of between £500 and £2000, depending on complexity. For more specialist HMOs, mortgage brokers may have access to specialist lenders. Specialist HMO mortgage brokers tend to charge a percentage of the loan amount, usually 1%.
We don’t usually charge broker fees on specialist HMO applications and in most cases charge £495 for standard, small HMOs.
Valuation Fee: A property survey or valuation report will be required to satisfy the lender that the property is suitable security. In most cases, this is charged when you apply and is not refundable once the valuation has been completed. We always aim to get the application agreed subject to valuation.
Assessment Fee: Some lenders charge a fee for assessing the application, this is not refundable once the work has begun.
TT (Telegraphic Transfer) Fee: A TT fee is paid to transfer the funds from the lender’s account to either yours or your solicitor’s account. This usually costs around £35.
ERC (Early Repayment Charges): If the loan is redeemed within the first few years there is usually an ERC to pay. This is usually worked out at a set percentage of the remaining loan balance.
Solicitor Fees: If there is a solicitor involved, there will be a fee to pay. The amount will vary depending on which solicitor you use. It’s advisable to obtain a quote before any work is started. In some cases, you also have to pay the lender’s solicitor fees.
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