Skip to main content | Accessibility | Site Map | Contact Us

Mortgage Glossary Page Masthead Shire Direct - the home of tailor made financial solutions | freephone 08000 282 281

Mortgage Administration Fees explained and mortgage help available

Mortgage Administration Fees are charges levied by the mortgage lender, and will generally fall into one of three types.

Here we provide details of the different types of Mortgage Administration Fees, what they are for, and how much they cost, along with information as to how we might be able to help you with a mortgage or remortgage.

The three main types of Mortgage Administration Fees explained

So, as we've established, Mortgage Administration Fees are charges levied by Mortgage Lenders, and will generally fall into one of the following types:

  • Administration Fees charged by the lender at the inception of the mortgage
    Lenders will usually apply this cost at the outset of the mortgage. It is often requested on an up-front basis as part of the valuation fee. This portion of the valuation fee is not usually refundable in the event the mortgage does not proceed. Lenders levy the Administration Fee in order to cover their administrative costs, including the sourcing of funds.

  • Mortgage Administration Fees charged to cover both entrance and exit charges
    Some lenders charge an Administration Fee to cover their costs both of opening the mortgage account, and to close it.

  • Mortgage Exit Administration Fees charged by the lender when the customer pays off their mortgage
    When customers repay their mortgage account, many lenders are imposing mortgage exit administration charges, especially where the mortgage account is being redeemed early, or if the customer intends to switch lenders. The exit administration fees are to cover the lender's costs such as changing Land registry entries, and retrieving Title Deeds.

How can I check the cost of my Mortgage Administration Fees?

The lender or mortgage advisor arranging your mortgage will discuss these with you at the outset of their dealings with you, usually in the form of a Key Facts Illustration (KFI) document. However, borrowers should be aware that exit charges are those that currently apply, and can obviously change over the passage of time.

Need more information?

We hope we've managed to explain the different types of mortgage administration fees and why Lenders charge these fees. If you are thinking of applying for a mortgage or remortgage, why not get in touch with us. Call us on Freephone 08000 282 281, lines are open everyday including weekends from 8am until 10pm, and one of our friendly, helpful and professionally qualified Mortgage Advisors would be delighted to talk to you. Or why not contact us online anytime. Get in touch with Shire Direct today, you'll be glad you did!

Enquire Online now, or call us today 08000 282 281 - our freephone lines are open 8am-10pm everyday! We'd love to hear from you!

The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.

There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.

THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

Adding existing debt to your mortgage will increase the repayment term and overall cost.

Shire Direct and Shire Direct Mortgages are trading styles of Shire Processing Centre Limited which is
Authorised and regulated by the Financial Services Authority in respect of regulated mortgage products and general insurances.
Registered No: 302389. Commercial funding and Secured Loans are not regulated by the FSA.
Licensed Credit Brokers. Consumer Credit Licence Number: 349999.

Shire Processing Centre Limited is registered under the provisions of the Data Protection Act by the Information Commissioners Office: Registration No: Z6795249. Registered in England & Wales. Company number: 2732202. Telephone calls may be recorded for training, monitoring and security purposes. All applicants must be aged 18-years or over.