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To be certain, ask the lender to
indicate all charges and penalties at the outset.
Typical costs involved are:
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Application/Arrangement fee.
Also known as
a loan establishment or processing fee, which is either a flat
fee or a percentage of the advance.
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Legal fees, both your own and those
incurred by the lender, whether arising ‘in-house’ or from
an external firm
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Early redemption penalties which may apply
for a couple of years or during the whole life of the loan
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Life insurance to cover the amount of the
loan
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Indemnity insurance
Also know as mortgage
insurance policy, to cover the additional amount of mortgage
in cases where the borrower requires a high loan to value
ratio.
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Periodic administration fees
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