Mortgages - I think it's better to have low 'booking' fee?

[CoolHands]

ok so we need to remortgage. Considering we will doubtless be remortgaging again in 2 years time after the initial period, I assume that these rip-off 'booking' (formerly known as 'arrangement' fees?) of £2000 should be avoided. Hence I'd rather pay slightly more per month for two years and not pay the £2k that's added on to some mortgages.

Does that make sense? Or am I being stupid?

eg I've just chucked in moneysupermarket to get some examples:

House worth £300,000
Mortgage of £141,000

that gives (to give two examples):

• Booking £1,999
• Initial Monthly Repayments 28 x £744.63

or

• Completion £1,545
• Arrangement Administration £130
• Initial Monthly Repayments 25 x £754.30

In scenario 1 above, the £1,999 is lost dead money yeah? Whereas in scenario 2 only £130 is lost dead money.

I'm assuming the 'Completion' fee in scenario 2 doesn't have to be paid until you actually complete your mortgage? ie at the end of the term. Or am I mistaken about that?

thanks for any info

Edited by CoolHands on Friday 15th November 18:13

[Sarnie]

Your mistaken.

It's added to your loan (or paid up front)in the same way as your first example

[jontymo]

Talking to a recommended Financial consultant he has advised using Santander, we have 70 LTV and with that can get a 5 year fixed with no fee's at all and at 2.99% meaning a mortgage of approx 158k over 14 years comes in at £1160/month

[CoolHands]

thanks

[Sarnie]

CoolHands said:

thanks

Based on your LTV I can get you a 1.89% two year fixed rate, drop me a line if it's of use

[Sarnie]

jontymo said:

Talking to a recommended Financial consultant he has advised using Santander, we have 70 LTV and with that can get a 5 year fixed with no fee's at all and at 2.99% meaning a mortgage of approx 158k over 14 years comes in at £1160/month

This is a broker only product, the direct product is 3.29%