Mortgage Reservation Fee explained
The Mortgage Reservation Fee is a charge levied by some mortgage lenders in order for you to secure the mortgage funds that you are intending to borrow.
"Friendly, helpful, put us at our ease, really easy to talk to"
Mr & Mrs C., Tipton, West Midlands
Below we take a closer look at the Mortgage Reservation Fee and how it works, together with how Shire Direct can help with your mortgage or remortgage!
Table of Contents:
What is a Mortgage Reservation Fee?
So then, as we outlined in the introduction, the Mortgage Reservation Fee is a charge that is levied by some Mortgage Lenders in order for you to secure the mortgage funds that you are intending to borrow.
The Mortgage Reservation Fee, which is sometimes called a "Mortgage Booking Fee", is usually payable on application on special preferential-rate products, such as fixed rate mortgage schemes, where the offer may be limited.
It is important to remember that if the borrower doesn't proceed with their application for any reason, Mortgage Reservation Fees or Mortgage Booking Fees are not usually refundable. If this is the case with a Mortgage arranged by Shire Direct, we will of course point this aspect out to you, and confirm the feature in writing, within the terms of your Personalised Key Facts Illustration (KFI).
If the product selected, has a Mortgage Reservation Fee or Mortgage Booking Fee, it can usually either be added to the mortgage borrowings, or paid up front. If you have opted to add this fee to the mortgage borrowings, you should bear in mind that interest will be payable on the amount over the remainder of the term of the mortgage.
The Mortgage Application Fee explained
More usually nowadays, Mortgage Lenders will generally charge a Mortgage Application Fee instead of a Mortgage Reservation Fee or Mortgage Booking Fee on most schemes, although on their special deals, these will often be much higher than for standard mortgage plans.
Like further information on how Shire Direct can help with a Mortgage or Remortgage?
If you are thinking of applying for a mortgage or remortgage, and require any information or assistance, we would of course be delighted to hear from you!
You can speak with one of our professionally qualified Mortgage Advisors until 10.00pm daily - including the weekends, simply by calling us on Freephone 08000 282 281. Or if you prefer, you can also enquire online at any time! You'll find our approach friendly, helpful and professional, and we'll always come up with a rapid in-principle decision - whatever your circumstances!
Here's just a sample of the wide variety of circumstances we will consider.
- Income Stretcher Mortgages
- Poor Credit Score
- Credit Defaults
- County Court Judgements (CCJ's)
- Self Employment
- Income Self Certification
- IVA's
- Bankruptcy
- Financial Restructure
- Equity Release Schemes
Our aim is to help in any way we can, and to provide you with a personal service. You'll find us to be friendly and professional, approachable and helpful, so call us now you'll be glad you did!
Hopefully we've managed to answer any initial questions you had regarding Mortgage Reservation Fees. Don't forget there is a wealth of information throughout our website and we're only ever a free call or couple of mouse clicks away and would be delighted to be able to help in any way we can.
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.
Are you worried and becoming stressed because you are having problems getting a mortgage or remortgage? Worry and stress no more! Here at Shire Direct we provide tailor made mortgage solutions to suit you, and can usually help with all kinds of circumstances including...
Remember, we're here to help, and would love to hear from you!
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.