Lenders, for a long time, have had arrangement fees; usually any thing from a few hundred pounds up to 3% of the mortgage amount. However, I am now seeing completion fees being charged, up front, as well. These are usually in the region of £250. This is something to bear in mind when comparing different lenders.

Also,  the arrangement fee needs to be looked at VERY carefully. This is because, you may get a very competitive interest rate with a large arrangement fee attached to it and this can look very appealing. There is a sting in the tail though, that if your mortgage is not large (typically in excess of £250,000) then you will actually being paying more for your mortgage overall with the high arrangement fee product. The better option would be to take a slightly higher interest rate product with a lower arrangement fee. This will mean that  overall, you will actually pay less for your mortgage. Again, this is a very important point to check out and compare when looking for your new mortgage product.

As can be seen, there are ways that you could end up paying a lot more for your mortgage without realising it. Talk to the experts at Thompson Financial Consulting and we will ensure you get the right mortgage deal.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Interest rates were today held at 0.5% by the bank of England’s Monetary Policy Committee. This marks one year since they hit the record low of 0.5%.