Understanding mortgage fees and charges

Mortage Fees

Always be on your guard against fees. If you go through a broker, for instance, find out how they get paid.

Some will charge you directly, others will be paid by lenders and some are happy to take money from both.

Arrangement fees in particular have been spiraling upwards in recent years. The cheapest you’ll probably find is around the £300 mark, but you can be charged a whopping £3,000 in exchange for an attractive rate.

Other charges to take into account when deciding whether an offer is financially attractive are legal costs, early repayment charges, higher lending fees and other assorted “set-up” costs.

You may have a great “headline” rate but once you factor in all the different fees they may erode the savings you might be making.

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