"The Easy Way to Get Your Best UK Mortgage" |
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Mortgage Guide
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How
to Choose your Mortgage
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The truth about mortgage fees
You might think the interest
rate is the most important thing to consider when you’re choosing
a mortgage.
It is crucial, as it determines how much you’ll have to repay each
month.
But the interest rate is only part of what determines whether
a mortgage is good value or not.
When you’re choosing between deals, you also need to take the fees
into account.
Even if you’re buying for the first time, you will hopefully know that most lenders charge a fee when you take out a loan with them.
Some don’t – but, surprisingly, this isn’t always a positive thing.
(To find out why, read The fee-free mortgage.)
You may expect to pay a fee at the end of your loan too.
Unfortunately, these costs are just the tip of the mortgage fee iceberg.
According to recent research, mortgage lenders now have a range of over 50 different charges they can throw at borrowers – that’s more than for any other financial product.
Forewarned, as they say, is forearmed, so here’s what you need to know...
But what you probably don’t realise is...
Mortgage lenders give their fees all sorts of fancy names, but they tend to boil down to the same basic things.
• Charges at the
beginning of a loan
These can be called set-up, booking, reservation, arrangement
or administration fees – but lenders are coming up with
new titles all the time.
For more on these, see Charges
at the start of a mortgage.
• Charges during
a loan
You can expect to pay a fee for anything that involves the
tiniest bit of work on your lender’s part.
That could be anything from sending out a duplicate statement
to chasing you over a missed payment.
For further information, visit Charges
during a mortgage.
• Charges at the
end of a loan
These can be described as exit, deeds, discharge, redemption
or sealing fees, and – at the time of writing –
are typically between £200 and £300.
Lenders have come in for a lot of criticism over
the way these fees have been rising in recent years.
As a result, several have scrapped them.
However, in some cases they have replaced them with others
– new titles to look out for include admin,
account, core term and lending charges
- or similar.
To find out more, go to What’s happening to mortgage exit fees?
To read more on this subject please see the list below or your mortgage guide or your home buying guide
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Read On
The Costs of a Mortgage in the UK
General costs of getting a mortgage
Hidden / True costs of home buying and mortgages
Charges at the start of a mortgage
Arrears Fees / Costs of falling behind payments
Fees for changing your mortgage
Final Payments / Mortgage Exit Fees
Why The Mortgage Lenders are So Greedy
Read On / Mortgage Guide
How
to Choose your Mortgage
Types of Mortgage
Remortgages
Where to Find Your Mortgage
Getting a Mortgage in Principle
Read On
Guide to Buying a Home in the UK
Guide to UK Home and Mortgage Insurance
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