Other mortgage costs
Repaying your mortgage
When you take on a financial commitment as big as a mortgage, it’s important to fully understand all the costs involved. Below you can see how mortgage costs are calculated and what your commitment means.
Interest is the cost to you of borrowing a lump sum of money. We quote interest as an APR (Annual Percentage Rate), which takes all the standard costs into account over the term of the mortgage and makes it easier to compare the costs of different mortgages.
UCB Home Loans calculates interest on a daily basis from the day we send your mortgage advance to your solicitor.
When you apply for your loan with us, we will charge you a valuation fee based on the value of the property. This includes a processing charge of £100. This valuation is principally for mortgage purposes and although you will receive a copy, you may also want to consider one of the following options before buying a property:
- Homebuyer report: This gives you an expert opinion on the quality and condition of a property and recommends any further investigations where necessary. Costs from an independent provider usually start at around £400, but you may be able to get a better deal if you combine it with your mortgage valuation through us.
- Full building survey: This gives you a more in-depth survey than a standard valuation of the condition of a property and highlights any defects. A full survey is likely to be more expensive than a Homebuyer report, however it will provide you with more detail which may be appropriate, for example, if you have bought a property at an auction.
To set up your loan, you will also need to pay a product fee* which is automatically added to the balance of the loan or can be paid upfront if you prefer. If the fee is added to your loan, you'll be charged interest on it over the term of your mortgage. A funds release fee of £35 is also payable on completion.
Over the life of your mortgage, you may also incur additional charges. For example, if you delay a payment beyond the agreed date or if you need to make changes to your loan. But please remember that we're here to help. So if your circumstances change, call us straightaway and we can discuss the options available to you.
At the end of your mortgage, you will need to pay a Redemption Administration Fee to release our charge.
Please see our Guide to Administration Charges for full details of these charges and when they apply.
*UCB Home Loans product fees for existing customers switching mortgage product.
You will need to cover the costs of a solicitor or licensed conveyancer to carry out the legal work relating to your loan. You should check the exact fee with your solicitor.
When buying a property, you also need to budget for land registry charges, local authority searches and the necessary stamp duty. Your solicitor should be able to give you the costs of these.
Early repayment charge
If you have a Tracker or Fixed rate mortgage and you repay part or all of your loan before the end of the benefit period, you may need to pay an early repayment charge on both the loan and any overpayments you have made. To make sure you know your commitments, our terms are clearly set out in your mortgage offer. These charges will also apply if you change your mortgage from one type to another within your benefit period.
An early repayment charge does not apply to overpayments when you regularly pay more than your agreed amount subject to any product specific limit detailed. Overpayments will reduce the amount of interest you are charged, but do not automatically reset your monthly payment – instead they can help you to pay off your mortgage early.
Product fees vary depending on product, please refer to the forms and guides page for specific product details.