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Tariff of Mortgage Charges

Birmingham Midshires is closely involved in the mortgage industry’s initiative with the Council of Mortgage Lenders and Which? to make our fees and charges easy for you to understand.

Our tariff of charges fully reflects the initiative’s good practice principles. This same document is being used across the industry to help customers compare mortgages.

When looking at the fees that other firms charge, you may notice some that don’t appear in our tariff (below). This means we don’t charge you these fees.

In our mortgage conditions we refer to this Tariff of Mortgage Charges as our expenses and our costs. These are the expenses and standard costs which you may have to pay us during the life of your mortgage. We'll tell you of any expense in advance, so you'll have agreed to them before they become payable. These expenses and standard costs can change from time to time.

Further information about how we deal with expenses and costs can be found in the Mortgage Conditions booklet we send if you receive a mortgage offer.

For simplicity, whenever we refer to 'solicitor', we mean a 'conveyancer' or a 'solicitor'.

We make charges for some of the additional services we carry out. This information has been produced so you may take these costs into consideration when using our services.

You can add some of the fees to your mortgage but remember, interest will then be charged on these fees.

A copy of this information will be sent to you each year with your mortgage statement.

Please note the level of fees charged is subject to change and we advise you to check with us the cost of any fees or charges.

When you will pay this charge

Name of charge

What this charge is for

How much is the charge?

Before your first monthly payment

These are the fees and charges you may have to pay before we transfer your mortgage funds

Account fee (We call this Mortgage account fee). The Mortgage account fee will no longer apply to New mortgage applications taken after the 1st October 2018

Creating and managing your mortgage account. This might also include closing your mortgage account when your mortgage ends – the product details for your mortgage will tell you if this is the case.

£295

Product fee

This is charged on some mortgages as part of the deal. It can be paid up-front or added to the total mortgage amount. If you add it to your mortgage, you’ll pay interest on it at the same rate as the rest of your borrowing. It might be a flat fee, or a percentage of the loan amount.

This fee varies and will be listed as part of the details of a product shown in your Illustration and offer letter.

Re-inspection fee (We call this Property re-inspection fee)

If your mortgage is released in stages and you’re using it to renovate your home, this covers the new valuation we need to do after the work’s carried out. We may also charge this fee where a re-inspection of the property is necessary after the initial valuation is carried out for example, when we are asked to release money that we have held back.

£114 per inspection

Valuation Fee (We call this Initial valuation fee)

The lender’s valuation report, which is used to calculate how much it will lend you. This is separate from any valuation or survey of the property you might want to commission.
There are other homebuyers or structural survey options available to you at a cost and there may be different approaches in different parts of the UK.
Some mortgages offer free valuations – the product details for your mortgage will tell you if this is the case.

From £300. This fee varies based on the property value and type of scheme chosen. We will confirm the charge to you before arranging the valuation. Full details can be found on Valuation Fees.

Property re-valuation fee for additional borrowing

This fee may be payable where you have applied for additional borrowing. It covers the cost of obtaining a valuation of your property where we need to and involves an internal inspection.

From £170. Fees are variable depending on the value of the property. We will confirm the charge to you before arranging the valuation. Full details can be found on Valuation Fees.

When you will pay this charge

Name of charge

What this charge is for

How much is the charge?

If you change your mortgage

NB If you change to a new mortgage product, the ‘before your first monthly payment’ fees may also apply at this stage

Early repayment charge
(changing your mortgage)

You may have to pay this if:

• You overpay more than your mortgage terms allow;
• You switch mortgage product or lender during a special rate period (e.g. while you’re on a fixed or tracker interest rate).

The fee will be a percentage of the loan amount. Please refer to your Illustration or offer letter for full details.

Re-inspection fee – release of land (We call this Property re-inspection fee)

This fee may be payable where you have applied to release part of your land from under the mortgage. It covers the cost of obtaining a valuation of your property where we need to and involves an internal inspection.

From £132.50. Fees are variable depending on the value of the property. We will confirm the charge to you before arranging the valuation. Full details can be found on Valuation Fees.

Change of parties administration fee (Transfer of mortgaged property [transfer of ownership])

Our administrative costs of adding or removing someone (a ‘party’) from the mortgage.

£199
If the transfer does not take place, £100 will be refunded to you.

When you will pay this charge

Name of charge

What this charge is for

How much is the charge?

These are the most common charges you may have to pay if you fail to keep up with your mortgage payments. Other charges, for example, relating to our repossession of the property, may apply later in the process and will be dependent on your circumstances.

Litigation management fee

If we instruct solicitors to collect arrears or seek possession.

£100

 

You must also meet other additional costs we incur. These costs may include such things as the following work, which third parties may do on our behalf:

  • Solicitor's costs - individual to each case.
  • Court fees.
  • Asset Managers costs - Asset Managers are third parties who will manage the marketing and sale of a repossessed property.

 

When you will pay this charge

Name of charge

What this charge is for

How much is the charge?

Ending your mortgage term

Early repayment charge
(ending your mortgage)

You may be charged this if you repay your mortgage in full before the mortgage term ends.

The fee will be a percentage of the loan amount. Please refer to your Illustration or offer letter for full details.

Mortgage exit fee (We call this Vacating fee)

You may have to pay this if:
• Your mortgage term comes to an end;
• You transfer the loan to another lender; or
• Transfer borrowing from one property to another.

This is payable either at the end of the mortgage term, or before the end of your mortgage term if you transfer the loan to another lender or another property (known as ‘redemption’).

You may be charged a separate fee by your solicitor or licensed or qualified conveyancer for their work relating to redemption of the mortgage and discharge of the security.

See your Annual Mortgage Statement for details. The fee will be waived if the mortgage has run its full term (including any agreed extensions and/or term applicable to any further advance).

If we charge a Vacating fee, we will tell you the amount of the fee and whether it is variable in your most recently accepted mortgage offer, further advance offer or mortgage product transfer offer. The amount of the fee, if applicable, will also be shown in your annual mortgage statement and in any amount owing statement we issue. We will also tell you the amount of the fee at any time you ask us to.

Valuation schemes

We’ll need a professional assessment of the property’s market value whether you are, buying a property for investment and renting it out, remortgaging, raising capital or carrying out improvements or repairs.

If you are applying for a remortgage or additional borrowing, we’ll arrange for a property assessment or revaluation for our own use – you won’t need to do this yourself, we choose how the valuation is done. We may arrange for someone to carry out an external appraisal, inspect the property or we may use a computerised model that analyses data from market transactions. If we require a valuation surveyor to make an assessment, they will either be employed by our internal surveying service or appointed from our panel of valuation and surveying firms. We may ask you to pay the cost of this.

When you apply for a new mortgage, we’ll ask you to choose from three levels of inspection and report.

Level 1: A basic valuation

This is the most basic property valuation and the least expensive, it is based on a limited inspection. It is prepared for us to make an assessment of whether we want to lend you the money to buy the property. It is not a condition survey and only gives you limited information about the property. So if you choose this type of valuation, bear in mind that the report might not mention defects that may have affected your decision to buy. You should not solely rely on it when making your decision whether or not to purchase the property. You can choose to upgrade your valuation to a level 2 or level 3 condition survey for an additional cost.

Level 2: Survey and valuation

This survey, which may either be a e.surv Property Check or Royal Institute of Chartered Surveyors (RICS) HomeBuyers Report, is an intermediate level of report. As well as assessing the property’s value, the survey provides information on its condition on the day of inspection. It will also give guidance on serious defects visible at the time of inspection and other issues that should help you decide whether to buy the property. The report will highlight the urgency of any repairs. If appropriate, it will recommend getting specialist advice.

Level 3: Building survey

This is the most comprehensive type of survey and the most costly. A building survey is a detailed report that can be tailored to fit your needs. The surveyor will discuss what kind of report you want beforehand. Building surveys do not provide a valuation of the property, so you will need to take into account the extra cost of a level 1 valuation report. We do not offer a Level 3 Building Survey. If you would like a building survey please refer to the RICS website to locate a local surveyor.

Valuation Fees

Purchase Price/Estimated value up to and including

Level 1 Buy to Let, Let to Buy

Level 2 Buy to Let, Let to Buy

£50k

£300

N/A

£100k

£300

£390

£150k

£300

£420

£200k

£300

£470

£300k

£300

£590

£400k

£300

£720

£500k

£300

£865

£600k

£300

£1005

£700k

£300

£1150

£800k

£300

£1290

£900k

£300

£1435

£1m

£300

£1575

£1.2m

£300

£1775

£1.4m

£300

£1980

£1.6m

£300

£2180

£1.8m

£300

£2385

£2m

£300

£2585

£2.2m

£300

£2790

£2.4m

£300

£2990

£2.6m

£300

£3190

£2.8m

£300

£3395

£3m

£300

£3595

£3.2m

£300

£3800

£3.4m

£300

£4000

£3.6m

£300

£4205

£3.8m

£300

£4405

£4m

£300

£4605

£4.2m

£300

£4810

£4.4m

£300

£5110

£4.6m

£300

£5215

£4.8m

£300

£5415

£5m

£300

£5620

£5.5m

£300

£6125

£6m

£300

£6630

£6.5m

£300

£7135

£7m

£300

£7640

£7.5m

£300

£8145

£8m

£300

£8650

£8.5m

£300

£9155

£9m

£300

£9660

£9.5m

£300

£10170

£10m

£300

£10675

£10m+

Available upon request

Available upon request

 

Property re-valuation fee, Re-inspection fee – release of land (We call this Property re-inspection fee)

Purchase Price/Estimated value up to and including

Level 1 Buy to Let, Let to Buy

£50k

£132.50

£100k

£152.50

£150k

£170.00

£200k

£190.00

£300k

£227.50

£400k

£262.50

£500k

£295.00

£600k

£300

£700k

£300

£800k

£300

£900k

£300

£1m

£300

£1.2m

£300

£1.4m

£300

£1.6m

£300

£1.8m

£300

£2m

£300

£2.2m

£300

£2.4m

£300

£2.6m

£300

£2.8m

£300

£3m

£300

£3.2m

£300

£3.4m

£300

£3.6m

£300

£3.8m

£300

£4m

£300

£4.2m

£300

£4.4m

£300

£4.6m

£300

£4.8m

£300

£5m

£300

£5.5m

£300

£6m

£300

£6.5m

£300

£7m

£300

£7.5m

£300

£8m

£300

£8.5m

£300

£9m

£300

£9.5m

£300

£10m

£300

£10m+

Available upon request

Revaluation Fee for Additional Borrowing

Estimated Value up to and including

Buy to Let, Let to Buy Revaluation

£50k

£170

£100k

£170

£150k

£170

£200k

£190

£300k

£228

£400k

£263

£500k

£295

£600k

£300

£700k

£300

£800k

£300

£900k

£300

£1m

£300

£1m+

Available on request

Level 1 includes the following instruction types Remortgage (internal inspection), Building Survey (where only the Level 1 fee is collected).

The type of valuation applicable will be decided upon application.

For telephone line opening times, please read the information in our contact section. Calls may be monitored and recorded for security and training purposes.

Our tracker rate mortgages are linked to Bank of England Bank Rate (also known as Bank of England repo rate). Details of this rate can be found on the Bank of England website or in the Financial Times or other leading newspapers.

Security and privacy policy

© Birmingham Midshires

This site is intended for UK residents unless otherwise stated. Mortgage Loans will be made by Birmingham Midshires.
Birmingham Midshires is a division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh, EH1 1YZ.
To contact the FCA Consumer helpline, please ring 0800 111 6768 or visit www.moneyadviceservice.org.uk/.