Our fees explained
This fee is for assessing and processing an application (even if the application is unsuccessful or it is withdrawn). At M&S Bank, we charge an application fee of £99 (unless you have chosen a Fee Saver mortgage). We will refund the application fee if the application is declined because the property is unsuitable and a new application is submitted within 3 months for a different property.
Early repayment charge (ERC) or charge for ending your mortgage early
You may have to pay this if:
- You overpay more than your mortgage conditions allow;
- You switch mortgage product or lender during a special rate period (e.g. while you’re on a fixed interest rate)
At M&S Bank this is only payable on certain products, and where overpayments have been made above the permitted overpayment allowance.
There are no early repayment charges for customers who have a tracker rate mortgage or who are on the M&S Bank Standard Variable Rate. For customers with a fixed rate mortgage, overpayments are limited to 10% of the outstanding mortgage balance per year. Overpayments can be made up to this set limit each year without incurring any early repayment charges – your mortgage illustration will provide these details. If you exceed your annual overpayment allowance, an early repayment charge will be charged on the amount you have repaid over the allowance. At the end of any fixed rate period, you are able to make unlimited overpayments.
The ERC charged may vary throughout your product term. Your mortgage illustration will provide this information.
Fee Saver mortgages
We offer a range of mortgages called ‘Fee Saver mortgages’. With these mortgages, you would not pay an application fee, product fee or completion fee. Other fees, however, may still apply.
Funds transfer/completion fee
This fee is for electronically transferring the mortgage funds to you or your solicitor/licensed conveyancer. At M&S Bank, this is called a completion fee and we charge £30. This fee is not charged on remortgage applications.
You will need to instruct a solicitor or licensed conveyancer to act for you in connection with your home purchase transaction and, in some cases, in connection with a remortgage. We will also need a solicitor or licensed conveyancer to act on our behalf - this can be the same firm as you use if they meet our requirements. You will be responsible for the fees and any disbursements charged by your solicitor or licensed conveyancer for the work that they carry out – unless we have said that we will make a contribution as part of your product deal (your mortgage illustration will provide this information if we are assisting with the legal fees). Fees may vary depending upon the legal work required.
This is charged to secure a particular mortgage rate or deal unless you have chosen a Fee Saver mortgage. At M&S Bank, you can decide to add the fee to the total mortgage amount (provided that this does not exceed loan-to-value (LTV) thresholds or the maximum £1m loan amount). However, please be aware that adding the fee to your mortgage you will incur more interest over the term of the loan.
Alternatively, you can choose to deduct the fee from your mortgage amount and pay this to the solicitor/licensed conveyancer upon completion. If this is the case, the product fee will be payable at the time your mortgage completes. You will be asked how you would like to pay the product fee when you start a full mortgage application.
This fee is for the lender’s valuation report, which allows us to determine the amount we could lend. At M&S Bank, we will pay for one free standard valuation per application. Customers shouldn’t use this report to assess either the suitability or saleability of the property. You should consider commissioning your own HomeBuyer Report or structural survey, where an independent, expert valuer will carry out a detailed inspection of your property and check the condition it’s in. These surveys would be payable by you directly to the valuer.