Mortgage Set Up Fees

Mortgage Set Up Fees

Mortgage set up fees can be expensive and it is important to compare all mortgage set up fees when looking at headline grabbing low interest rates. The cost of mortgage set up fees such as the lender arrangement fee, the mortgage valuation set up costs and ancillary associated mortgage set up fees such as lender conveyancing and money transfer costs all need to be assessed when looking at any mortgage deal.

Lenders have recently been criticised by the Government for the mortgage set up fees they are charging and as recently as June 2008, the Chancellor of the Exchequer Alistair Darling was indicating that he may ask the Financial Conduct Authority to consider the fees being charged

It is clear that mortgage set up fees have increased and lenders can charge anywhere from 3.5% of the overall loan cost as fees simply to set up the mortgage.

At Capital Fortune we will not only advice you on headline grabbing rates but we will compare these advertised mortgage rates with the overall mortgage set up fees. Within those mortgage set up fees we will also include, if applicable our own broker fees and give you an assessment of the overall costs of any mortgage product. In doing so, we are confident we will provide you with a recommendation that is absolutely right for you, based on your own needs and requirements.

Lenders make a great deal of profit from mortgage set up fees and the costs can sometimes become prohibitive. For example if the mortgage set up fees are a modest £500 lender arrangement , £500 valuation fee , and £500 legal costs, this equates to 1.5% on the headline rate of interest on a £100,000 mortgage loan. The total mortgage set up fees being £1,500 before any broker fees.

It is therefore important to seek holistic advice on the true costs associated with any mortgage product from a mortgage broker or adviser who can search a comprehensive panel of lenders and is not attached to one bank only offering its own products.

Why not speak to one of our Mortgage Advisers for advice on mortgage features by calling 020 77 100 400 or Enquiry Online.

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