Fees

Pepper Money is closely involved in the mortgage industry’s initiative with UK Finance 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 those fees.

Before your first monthly payment

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

Name of charge

What this charge is for

How much is the charge?

Application Fee

Assessing and processing your application (even if your application is unsuccessful or you withdraw it)

£135.00 

Completion Fee

Charged for completing your mortgage, as detailed in your Mortgage Offer

£ variable

Funds Transfer Fee

At Pepper Money we call this the Telegraphic Transfer/CHAPS Fee

Electronically transferring the mortgage funds to you or your solicitor

£15.00

Legal Fee

You will normally instruct a solicitor to act on your behalf in connection with your home purchase transaction. You may be required to pay their legal fees and costs as part of their work on your behalf. These fees/costs are normally charged by the solicitor, directly to you unless we tell you that we will contribute to the legal costs as part of your product deal 

At Pepper Money, you will also have to pay for the legal work undertaken on our behalf. This fee is in addition to the fees that your solicitor or conveyancer will charge in respect of the legal or conveyancing work carried out on your behalf

£ variable

 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

Pepper Money bases the fees below on the estimated value/purchase price of the property for a valuation report that includes: a description of the property, market value at the time of inspection and an estimate of the current cost to reinstate the property in its present form

 

 

Valuation Fee

Purchase Price/
Estimated Value

Valuation Fee
£200,000 £400.00
£400,000 £550.00
£600,000 £600.00
£800,000 £750.00
£1,000,000 £850.00
£1,250,000 £950.00
£1,500,000 £1,100.00
£1,750,000 £1,250.00
£2,000,000 £1,500.00
£3,000,000 £1,850.00
£5,000,000 £2,750.00

Administration of your mortgage

If you ask us for extra documentation and/or services beyond the standard management of your account

Name of Charge

 What this charge is for

How much is the charge?

Data Subject Access Request Fee

Charged for providing you with a copy of the personal data we hold about you.  This fee is per person

£10.00

Request for Legal Documentation Fee

At Pepper Money we call this the Deeds Fee

Any original documents relating to your mortgage, e.g. title deeds, that you ask for

At Pepper Money, we also charge this fee for the release of deeds once you repay your mortgage in full

£22.50

Lender Insurance

Charged to cover the cost of third party insurance to protect our secured interest in your property when we have not been provided with evidence that you have your own Building Insurance Cover. This fee is charged monthly and is based upon the outstanding balance of your mortgage. We will advise you of the amount payable

£ variable

Unpaid Ground Rent /Service Charge Fee

Charged to cover the administrative costs associated with our paying any outstanding ground rent, service charges or associated costs and fees on the mortgaged property following our receipt of a notification that you have not paid such ground rent, service charges or associated costs and fees when due.  This fee is charged in addition to your obligation to reimburse us for the amount of any such ground rent, service charges or associated fees paid on your behalf

£30.00

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

Name of Charge

 What this charge is for

How much is the charge?

Consent To Let Fee

At Pepper Money we call this the Letting of Property Fee

If you want to let your property but don’t have a buy-to-let mortgage, you’ll pay this for each ‘consent to let’ agreement, where we agree to you letting out your property for a set period within your existing owner-occupied mortgage

£45.00

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 discount tracker interest rate)

£ variable

Subsequent Mortgage Consent Fee

Charged to cover the administrative costs associated with considering a request for our consent to the addition of a subsequent charge

£40.00+VAT

Change of Parties - Application Fee

At Pepper Money we call this Transfer of Equity -Application Fee

Charged to cover the administrative costs associated with considering a request an application to add or remove someone (a ‘party’) from the mortgage

£82.50

Change of Parties - Completion Fee

At Pepper Money we call this Transfer of Equity - Completion Fee

Charged to cover the administrative and underwriting costs associated with adding or removing someone (a ‘party’) from the mortgage. 

At Pepper Money, this is charged in addition to the Transfer of Equity – Application Fee

£50.00

If you are unable to pay your mortgage

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

 

Name of Charge

 What this charge is for

How much is the charge?

Monthly Arrears Fee

You may be charged an arrears fee on a monthly basis, or when specific events happen in the management of your account when you are in arrears 

This covers charges in respect of your account if you fall behind on your payments

At Pepper Money, this fee will not be charged in months where there is an arrangement in place and maintained to repay the outstanding arrears balance or the contractual monthly instalment has been received

£23.50

Monthly Property Management Fee

Charged monthly from the point your property is repossessed, to cover the administrative costs of our management of the process to secure, insure, market and sell the property.  Any costs incurred from third parties to secure, insure, market and sell the property are not included within this fee

£42.50+VAT

Field Agent Instruction and Visit Fee

Charged in relation to the costs of a representative visiting you at your home to discuss your financial situation and proposals to pay the outstanding arrears balance

£90.00+VAT

Ending your mortgage term

Name of Charge

 What this charge is for

How much is the charge?

Mortgage Exit Fee

At Pepper Money we call this the Mortgage Exit Administration Fee

You may pay this if;

  • Your mortgage term comes to an end;
  • You transfer the loan to another lender; or
  • You 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

£30.00

Note - Whilst this tariff includes our current fees and charges in operation from October 2017, these are subject to review by us, and may be amended or changed from time to time.

We will only amend our fees if there is a change in the costs we incur associated with that fee. The above fees are not exhaustive and may vary according to the complexity of each case. You will have to pay any other costs or expenses we pay to third parties (e.g. associates, solicitors, asset managers, receivers, courts etc.) that we may instruct to recover any money owed to us, or to create or protect our security, or in any other exercise of our legal rights. If we apply any other fee or charge to cover administrative costs in relation to your mortgage with us, we will give you reasonable notice, stating the amount of the fee, the nature of the work covered by it and the date on which we will add the fee to your mortgage.

Unless otherwise specified, all fees are inclusive of VAT where applicable and, where we are charged VAT by third parties, we will pass this cost on to you.

Fees and charges shall be imposed in accordance with this tariff, except where the terms and conditions of your Mortgage provide otherwise.

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