I am sure that all people who have been looking at taking a new mortgage or remortgaging recently have noticed how expensive the lenders arrangement fees are.

Mortgage Arrangement Fees are charged by the lender and are usually added onto the loan but can be paid by the applicant upfront. They used to be from £250 to £500 but now you are going to be lucky to find anything below £700. Cheltenham & Gloucester (part of Lloyds TSB) have fees of about £2500. Ok, their rates are good BUT £2500. Wow!!

As a general rule of thumb, once you have gather together all the mortgage products which fit your personal borrowing requirement you can then begin to work out which product is most cost effective for your size of mortgage eg. 3 year fixed rates with no extended tie in period.

Obviously, that’s where I want you to get a little stuck so you give my business a call and arrange a meeting with me to do it all for you.

As a client of ours (hello Neil) said today,

“It’s a little like the baker charging you to make the bread and then, when its made, make you pay for it.”

Please note that for mortgage advice, we receive a commission from the lender or charge you a fee (in case you think we will be biased towards the lender who pays us the highest commission)