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

Original Poster:

23,619 posts

225 months

Friday 15th November 2013
quotequote all
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

8,373 posts

239 months

Friday 15th November 2013
quotequote all
Your mistaken.

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

jontymo

853 posts

180 months

Friday 15th November 2013
quotequote all
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

Original Poster:

23,619 posts

225 months

Friday 15th November 2013
quotequote all
thanks

Sarnie

8,373 posts

239 months

Friday 15th November 2013
quotequote all
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 smile

Sarnie

8,373 posts

239 months

Friday 15th November 2013
quotequote all
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% smile