Pure Funding Solutions is Authorised and Regulated by the Financial Conduct Authority (FCA) under our firm’s reference number 726360. If you enter into a mortgage or loan agreement on a property, it is our duty to inform you that certain fees may be due or payable. These costs are shown below:
Valuation Fee – all lenders will require a survey on the property security address and unless otherwise stated, customers will have to pay for this service usually before a formal offer is produced. The cost may vary depending on the value of the property or the size of the loan
Solicitors Fees – all lenders Solicitors will charge a fee for any legal work that is carried out on behalf of the mortgage or loan. This fee is usually deducted from the lenders loan advance. The cost will vary depending on the size of the loan or structure of the property or properties.
Your own Solicitors Fees – most Commercial, Bridging and Buy to Let transaction will require you to engage with your own Solicitor as well. There will obviously be costs associated with the legal work they will do on your behalf
Broker Fees – this is a fee that we or your introducing broker or IFA will charge you to help arrange completion of the mortgage or loan. The fee is typically 1% of the net advance and will be confirmed in the Terms of Business and Confirmation of Fees payable form which you will receive.
Application and Commitment Fee – this fee is typically between £300-£500 and is payable upon acceptance of the lenders terms and then either refunded upon completion, or taken off the final broker fee
Other Costs of Fees to be aware of are:
You may have to pay VAT on a Commercial property purchase
Please be aware that Stamp Duty may be payable on a commercial mortgage or loan purchase and check with your Solicitor as to the costs as this is dependent on the loan advance
The lender will normally charge a Completion fee of between 1% – 2.5% depending on the loan advance or the size of the property. This is usually added to the loan advance upon successful completion. Please note that Pure Funding Solutions or an introducer to PFS such as an IFA or Broker, will normally receive a commission that is payable directly from the Bank or Lender
If you enter into a Secured Loan Agreement that currently comes under the jurisdiction of the FCA (i.e. any loan that is not on a Buy to Let property, in a company name or for business purposes), then the following fees may apply:
Upfront fees – This may be an application or commitment fee
Survey/Valuation- There may be a cost for this. However depending on the LTV some lenders may accept a drive by survey or desktop valuation which will reduce the cost.
Mortgage Reference/BSQ – There may be a cost incurred when applying to the First Charge lender to obtain mortgage history.
Consent – There may be a cost incurred when applying to the First Charge lender to contain consent for the Second Charge.
A Broker Fee of between 5% – 10% will usually be charged upon successful completion and this will be added to the loan advance. Please note that interest will be charged on this figure and will be within the monthly agreed payment collected by standing order.