The Fee-Free mortgage

From time to time, many mortgage lenders advertise fee-free mortgage deals.

And very attractive they can sound too.

Now that many deals come with a set-up fee (also called an arrangement or reservation fee) of anything from £400 to £4,000, what borrower wouldn’t like to be offered one that doesn’t charge a penny for this?

that’s not all. In many cases, the lender will also cover your property valuation and basic legal fees.

 

It seems like a win-win situation

The lender pulls in heaps of new business from hard-pressed borrowers keen to avoid being ripped off with a traditional high-fees deal.

And, when you add in those valuation and legal fees, you stand to save anything upwards of £1,000.

 

But (surprise, surprise) it isn’t that simple

Mortgage lenders aren’t charities, which means they’re not in the business of handing out something for nothing.

So what’s the catch?

To find out, read the Dangers of  a Fee Free Mortgage