Typical Costs

Arrangement Fees

These are fees charged by the lender for providing a loan. They are often charged as a percentage of the funding provided. Fees vary depending on product type and lender. Some lenders do not charge a fee for simple loans, however for loans such as Bridging loans, the arrangement fee can be up to 3%.  

Early Termination Fees

These are fees charged by the lender to the borrower if a loan or other facility is repaid early. Often they are structured to reflect the loss of income the lender expected to receive by providing the finance. Fees can vary across the term of an agreement, typically starting off high and then reducing over the years, however they may have standard calculation that will be detailed in your finance agreement, therefore you should read the paperwork for any facility or funding carefully.  

Funding Friends Brokerage Fee

Depending on the type of funding required, Funding Friends will charge a brokerage fee which will reflect that it is a human spending their time and effort on your funding application. Some requirements are more complex than others and therefore incur more time and would merit a higher fee. Because of the variety of funding we source we do not have a standard one size fits all approach however once we know what you would like to achieve we will be able to put the costs in writing. We are very transparent from the outset and any fees will be detailed on your terms and conditions agreement at the start of the process.  

Legal Fees

Depending on the type of funding required, legal work will have to be undertaken for both the funder and borrower. How much this costs and who pays depends on a) the type of finance sought b) the lender chosen and c) the deal complexity.  

Valuation Fee

If security is to be provided for a loan then 99 times out of 100 the lender will need to know how much it is worth. If it is an auction property purchase then some lenders will take the price paid as fair market value, however for most other circumstances a physical inspection of the property is required. This is undertaken by a valuer and they will arrange to visit the premises. Prices for valuations vary and reflect the complexity of the property or other security being valued. Some valuers for simple property transactions will.

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