Mortgage Fees | first direct bank

At a glance

Here’s a quick summary of the first direct fees that may apply, depending which interest rate type you choose.

A booking fee is charged on some mortgages to secure a particular deal. While it’s non-refundable, it can be transferred to another deal, and is paid 5 working days from booking the rate.

An arrangement fee is charged for arranging some mortgages. It’s payable when your mortgage is drawn down or you can add it to your loan. If you add it to your loan, it’ll increase your balance, interest, and monthly payment.

Fee type	Fixed	Tracker
Booking fee	£0 - £490	£0
Arrangement fee	£0	£0 - £490

^{If there are any terms you don’t understand, our jargon buster can help.}

Other fees you may pay

Early Repayment Charges

You might have to pay an Early Repayment Charge if you fully repay your mortgage early.

If you choose a Fixed Rate and repay the whole of your mortgage in the first year, an Early Repayment Charge of 3% of the original mortgage amount will apply. If you repay the whole of your mortgage in the fixed period after that, a charge of 2% of the original mortgage amount will apply.

An Early Repayment Charge won’t apply if you repay your mortgage in full after the fixed rate period ends.

Any Early Repayment Charge will be shown on your Mortgage Illustration.

Early Repayment Charges do not apply for Tracker Rates.

Legal fees

These fees are payable to your solicitor or licensed conveyancer.

We’ll also need a solicitor or licensed conveyancer to act on behalf of the bank. If yours meets our criteria, we’ll appoint them to work for us too. If not, we’ll instruct another solicitor or conveyancer, and as the borrower, you’ll be responsible for these fees.

Remortgage fees

If you’re changing the owner(s) of the property, you’re remortgaging and will need to pay the associated legal costs that come with this.

Where the mortgage and property will both continue to be in the same names, and the property will be your main residence, we’ll prepare the legal documentation. This means that there will be no basic solicitor’s costs for you to pay. However, you’ll not have any legal representation, unless you arrange and pay for it yourself.

If you’re transferring your mortgage to first direct from another provider, they may charge an Early Repayment Charge if you’re moving during a fixed rate or ‘tied in’ period.

Valuation fees

Standard valuation report

This is a quick check to determine the current market value and confirm that a property provides suitable security for mortgage purposes.

A Standard Valuation can be completed by a qualified surveyor visiting the property or using an Automated Valuation Model (AVM).

Just so you know:

if a surveyor visits the property only areas that are accessible or visible will be commented on (furniture and carpets won’t be moved)
if there appears to be a problem we’ll probably recommend a specialist report
you won’t receive a copy of this valuation report
we strongly suggest you get a more detailed report/survey.

The Standard Valuation is for lender’s purposes only and should not be relied upon.

Level 2 Home Survey

The RICS Level 2 Home Survey (formerly called a HomeBuyer Report) is a visual inspection of the property.

Level 2 surveys:

are designed to help you make an informed decision on whether or not to proceed with the property and assess whether the property is reasonably priced
provide a summary of the property’s condition and highlight significant problems with a simple ‘traffic light’ rating
don’t explore structural aspects
won’t detail any long-term remedial work that might be needed
will look at and comment on services but not test them (gas, electric, plumbing, central heating, drains etc)
review only accessible or visible areas (furniture and carpets won’t be moved).

When is a Level 2 Home Survey most suitable?

A Level 2 Home Survey is best for conventional houses, flats, or bungalows built within the last 150 years, which are in a reasonable condition and built from common building materials.

It’s not recommended for older buildings, as these often require a more in-depth Level 3 survey.

Level 3 Home Survey

An RICS Level 3 Home Survey (formerly called a Building Survey) is the most in-depth and comprehensive report available.

Level 3 Surveys:

provide a detailed picture of the property’s construction and condition
include a thorough inspection and report to highlight any potential issues (including the roof, chimney, wall, floor, ceilings, doors and windows)
include comments on damage to exposed timbers, condition of damp proofing, insulation and drainage (although drains are not tested)
contain advice on how to deal with certain problems discovered at the property, including repair options and the consequences of leaving any potential issues untreated.

When is a Level 3 Home Survey most suitable?

Level 3 Home Surveys are best for all residential properties. They’re ideal if you’re dealing with a run-down, larger or older property. They may also be suitable for a building that’s unusual or altered, or if you’re planning major works.

Before you apply

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Get in touch

Are you in the market for a new mortgage? Do you have a question about your recent application? Or perhaps you’re ready to pay off your mortgage? Whatever your query, we can help you find the right team who can answer it.

Our mortgage fees

At a glance

Other fees you may pay

Early Repayment Charges

Legal fees

Remortgage fees

Valuation fees

Valuation fees

Standard valuation report

Level 2 Home Survey

Level 3 Home Survey

Before you apply

Useful documents

Other handy tools

Get in touch