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When you apply for a secured loan, this guide aims to provide an open and honest overview of the charges and fees involved in the process. This will give you the full picture on the costs involved so you can arrange your budget and assess how much you can afford to borrow.
Here we go into more detail about the usual fees and charges added to a secured loan, so you know exactly what to expect.
The typical fees associated with a secured loan usually includes a:
This is the fee charged by the broker for arranging the loan and it can also be added to the loan total and repaid across the term. At Willows we aim to keep the broker’s fee as low as possible, These are based on a percentage of the loan amount and are capped at a maximum fee.
In the majority of cases, we will cover the valuation fee. However, if our research indicates that the estimated value of the property is unrealistic—but the client remains confident in their valuation—we may ask the client to pay for the valuation upfront.
While there is some legal work involved in the secured loan application process, these costs are usually covered by the lender and included in their fee lender fee. As your broker, we also assist with the administrative side of conveyancing, such as requesting information from mortgage providers or any third party with an interest in the property—this could include charges remaining from previous loans or agreements or solar panel attached to the home.
In rare cases, the lender may ask you to cover some legal costs. For example, if the applicant is over 70 and is required to seek independent legal advice, or if the application is particularly complex and requires additional legal work beyond what is typically needed for a secured loan.
If this applies to your case, we will inform you at the beginning of the underwriting process. These additional legal fees are uncommon and rarely necessary.
Apart from the lender’s fee and the broker’s fee – which are usually added to the loan repayments – Willows does not charge upfront or setup fees for our secured or mortgage products.
Broker fees are based on a percentage of the loan amount and are capped at a maximum fee. We believe in being as transparent as possible with our customers, so you will always know where you stand in terms of costs.
Before signing any secured loan or mortgage agreement, we encourage you to ensure that you are aware of the total amount owed and the full repayment terms.
You can also ask our team any questions you may have regarding fees and charges and how they can be applied to your loan.
Customers always have the option to pay the lenders fee and brokers fee upfront, if this is their preference.
However, it is worth bearing in mind that if the application is not successful, some of the fees may not be refunded.
This is why most customers prefer to add the fees to the loan amount, so they only need to be paid if their application is successful.
If you need more information about paying upfront or adding the fees to the loan total, the Willows team can let you know more.
If you decide to pay the fees upfront, you will only pay a flat fee without any additional interest. However, as we mentioned above, the fees may not be refundable should your application be unsuccessful
When the fees are added to the loan they will be built into your monthly repayments, this means interest will be charged on them.
Please use the below as an example:
This will depend on the product you have chosen. Most lenders will charge an exit fee when the account is settled, typically ranging from £95 to £200. This fee is usually added to your redemption figure and itemised on your settlement statement.
If you have opted for a fixed-rate product, many lenders will also apply an early repayment charge (ERC) that runs alongside the fixed period. For example, a two-year fixed product may carry an ERC of 3% of the outstanding balance in the first year and 2% in the second year. A five-year fixed product may have a 5% ERC in the first year, 4% in the second year, and so on, decreasing annually until the fixed period ends.
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We’re extremely proud to be rated ‘Excellent’ for our service standards year after year. Since 2008 we’ve helped thousands of customers across the UK to find the right finance for their needs – no matter how complicated the circumstance.
There are things to consider when it comes to applying for a secured loan. Take some time to weigh up the pros and cons to see if it is the right financial solution for you.
It’s only natural to have a lot of questions about how the process works and the costs involved, and the Willows team are more than happy to answer them for you.
To find out more about how we can help, you can speak with a member of our team today by calling 01656 766 158.
If you have a question – we’d be happy to talk to you – simply call us…
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At Willows Finance we ensure your personal information is kept secure and confidential.
PRIVACY OF YOUR INFORMATION
At Willows Finance Ltd, we appreciate that your privacy is extremely important to you. With this in mind, we have put in place a number of measures to ensure that any personal details we obtain from you as a result of visiting this website is processed and maintained in accordance with accepted principles of good information handling and also in accordance with the Data Protection Act 1988.
This statement provides you with details of the type of information we may hold about you, how we obtain and use information and how we protect your privacy.
Willows Finance Limited
Brocastle, Bridgend, CF35 5AS
Authorised and regulated by the Financial Conduct Authority
Firm Reference Number: 670052
Company Number: 6678545 (Registered in England and Wales)
This document outlines the services we provide. If you need clarification, please contact us at 01656 766158.
We offer first and second charge regulated mortgage contracts for business or personal use.
Other finance options may include:
Regulatory Status:
We offer an advised mortgage broking service and provide enough information for you to make an informed decision.
We are not independent financial advisers. Free debt advice is available from the Money Advice Service.
You can view our privacy policy at: https://willowsfinance.co.uk/privacy-cookie-policy/.
Lenders may also have their own privacy policies which will be provided to you.
We charge a broker fee upon loan completion. The average fee is approximately 5%, depending on your situation.
Fee details:
No refund is offered after completion. You may pay upfront or add the fee to your mortgage. Fees and commission will be detailed in your ESIS and Mortgage Agreement.
You will receive a Mortgage Agreement and an ESIS document detailing:
You may cancel your application anytime before completion without any charge. Mortgages cannot be cancelled after completion.
Missing payments can lead to charges, repossession, and negative impacts on your credit rating.
Consolidating debt may result in higher long-term interest. Securing debt against your home increases risk.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loan secured on it.
If you wish to complain, contact us at:
Willows Finance Limited
Brocastle, Bridgend, CF35 5AS
Tel: 01656 766158
You may be able to refer your complaint to the Financial Ombudsman Service.
We are covered by the FSCS. You may be eligible for compensation of up to £85,000 per person per firm for mortgage advice and arranging.
More info: www.fscs.org.uk
After processing your application, you’ll receive a Mortgage Agreement and have a 7-day reflection period.
Contact us during this period with any questions. To proceed, sign and return the agreement.
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