Buy to let
A handy guide to our fees & charges
There is normally a fee for submitting new Buy to Let business to Accord. Our guide to fees and charges will show when a fee is payable in the following circumstances:
New Application & valuation fees
Accord offers a range of products to suit different client requirements, some without product fees and some with. For details on product fees please see our product page.
Product switching fee
A Product Switching fee, which is £90, is charged for changing products prior to completion and is payable at the point of switching. It covers part of the costs incurred when the product applied for is reserved and is payable each time the product is changed before completion. (Where a product carries an incentive such as a free valuation or free legals then an alternative product with the same incentives must be selected.)
Initial interest with your first mortgage payment
Your first mortgage payment includes initial interest. This is the interest which is charged from the day we release funds to your solicitor to the end of the calendar month in which interest charging commences - please be aware of this to allow you to budget accordingly.
Three working days after completion we will issue a First Payment Letter which will confirm the amount of initial interest which has been charged, and the date on which the payment will be taken.
A valuation fee is payable as part of all new Buy to Let applications, both for house purchases and remortgages. The valuation will be instructed as soon as the fee has been paid and we begin to process the application - unless you advise us otherwise. Once a valuation has been carried out, the fee will not be refunded in the event that the mortgage does not proceed.
|Valuation not exceeding||Mortgage valuation||HomeBuyer report & valuation|
Buy to Let property inspections
What’s right for my client?
The mortgage valuation
The mortgage valuation is solely for our purposes and is used to ensure that the property provides sufficient security to lend.
We will normally provide your client with a copy of the valuer’s report – however if your client is taking advantage of one of our fee-assist mortgages and we are refunding or paying the cost of the valuation, your client may not receive a copy of the report.
It important that your client is aware that the valuation IS NOT A SURVEY and does not provide any indication whether the property is worth what is being paid for it, nor does it indicate any necessary repairs or defects.We would strongly recommend that your client obtains a more detailed inspection of the property such as a HomeBuyer Report or Building Survey (see below).
We can arrange to carry out a HomeBuyer Report for you client at the same time as the mortgage valuation. This report is designed to focus on defects and problems which are considered urgent or significant. A HomeBuyer Report is suitable for properties which are of standard type and construction and appear to be in reasonable condition.
This type of survey is suitable for all residential properties but may be particularly applicable for period properties, those with extensive accommodation or ion a particularly poor state of repair. It can be tailored to your client’s requirements but is a detailed report covering all major and minor defects. There is no standard or scale fee for a Building Survey but the cost can be significantly higher than it is for a HomeBuyer Report.
Although in most cases the cost does not include a mortgage valuation, we can arrange for both to be carried out together. Your client will pay us the standard Mortgage Valuation fee but pay the cost of the Building Survey direct to the valuer. Before the valuer carries out the Building Survey, he will contact your client to discuss the scope of the inspection and the cost.
Important information which may affect your client
It is important to manage your client's expectations regarding the valuation of their property. In the current housing market, whilst property prices in some regions are increasing, in other regions house prices either continue to fall, or remain flat. This is likely to affect the value of property when your clients apply for a mortgage, and potentially your client's choice of mortgage product.
We obtain a mortgage valuation for all house purchase and remortgage applications. In addition, the valuer appointed will provide us with a rental assessment of the property. As such the mortgage valuation will not necessarily be the same figure as the price which someone might be prepared to pay for the property.
This could result in your client's property being valued at less than you told us and may also mean that your client no longer qualifies for a product with a specific LTV. In the event of this happening your client may be able to switch to another product with a higher LTV, or it may mean that we are unable to offer your client a mortgage. If we are unable to offer a mortgage after the mortgage valuation, any product application or valuation fees will not be refunded, so it is essential you are as accurate as possible when providing us with an estimated value of your client's property.
There are various websites that provide estimates of current property valuations and house prices and we would encourage you to look at these and explore the rental income and demand for the property before telling us your client's property valuation. This will help to ensure the figure that you provide to us is as accurate as possible and increase the chance that the product you select on application is the one you will be able to proceed with following the application.
Existing customer fees & charges
A revaluation of your client’s property may be required if they wish to make a change to their existing Accord BTL mortgage such as:
- Existing Borrower Transfer
If a re-valuation of your client’s property is required, a non-refundable fee £149 is payable. This fee is payable upfront on request of a re-valuation. This can be paid by credit/debit card over the phone.
A revaluation can be requested to estimate the current LTV if your client believes that the current value of the property is different to our estimation. The revaluation does not reserve any of our mortgage products or interest rates and products can be withdrawn at any time.
- Early Repayment Charges
If your client decides to repay their mortgage early or they want to switch to a new deal (an Existing Borrower Transfer), there is usually a charge applied. This is normally shown as a percentage of your current mortgage balance.