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Mortgage Guide
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How
to Choose your Mortgage
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Charges during a mortgage
When
you’re comparing mortgages,
it’s essential to consider the fees as well as the
interest rate.
Most people are at least vaguely aware they will face a
set-up charge at the beginning of their loan term and some
kind of exit fee at the end.
(For more on these, read Charges
at the start of a mortgage and What’s
happening to mortgage exit fees?)
What would-be borrowers tend to be less aware
of is the huge range of fees mortgage lenders can clobber
them with during their mortgage term.
As a general rule, they will apply these whenever you do
anything that causes them extra work – however slight.
So here’s what you need to know
What can my lender charge
me for?
The short answer is ‘just about anything’. But
these fees fall into three broad categories
You are likely to be charged an admin fee every time you put your lender to any trouble.
For something small, like asking for a copy of your title documents, you might pay up to £75.
If you want to make a significant change such as adding or removing someone’s name from the mortgage, or changing from an interest-only to a repayment loan, expect to be charged several hundred pounds. • Fees for missing a payment
If you fail to make your monthly payment on time, some lenders will give you a few weeks’ grace.
But an increasing number will be ready to penalise you.
You might be charged around £30 for a returned cheque or direct debit, with a similar fee every time they phone or write to you about your arrears – although this can be as much as £50 a time.
Penalties like these can soon mount up, so if you think you might have trouble keeping up with your repayments, contact your lender right away.
If you’ve had a good payment record so far, it may agree to waive the charges.
For more information, go to What if I get into financial difficulties? • Fees to get out early
Virtually all lenders apply an early redemption charge if you want to get out of a deal during the initial discounted or fixed-rate period.
This could be £7,500 or more on a £150,000 loan.
To find out more about these, see Early redemption penalties explained and How to avoid paying an early redemption penalty.
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
Browse over 200 Free Mortgage TipsYour Complete Guide to UK Mortgages Find Out How to Win the Race to Buy Your Home - Home Buyers Guide Learn How to Save ££s by Remortgaging Read the Insider Info on Home Insurance Site Help |
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