Costs Attached to Your Mortgage
In addition to your monthly payments there will be other costs particularly at the start of the mortgage. These may include:
Arrangement Fee
Most lenders charge an arrangement fee on any special products, that they offer. In recent years these fees have increased and should be considered when choosing your mortgage.
Most lenders allow this fee to be added to the loan amount.
Booking Fee
The booking fee is a fee the lender may charge you to secure mortgage funds. It normally applies to special offer loans, such as fixed or capped rates and is payable at application. It is often part of the arrangement fee.
Higher Lending Charge
Lenders may charge a higher lending charge depending on your loan to value (LTV). Loan to value is the amount of your mortgage expressed as a percentage of the property price.
In recent years lenders have increased the level of LTV on which they charge a higher lending charge. Traditionally a higher lending charge applied for LTV's over 75% however in recent years this has increased to 90% for most lenders. Lenders generally allow this fee to be added to the loan amount.
Valuation Administration Fee
A lender will require a valuation of the property as part of the mortgage process and will charge a valuation fee for this. The borrower may choose to organize a valuation using a third party at a lower cost. The lender may charge a valuation admin fee in this case.
Compare Offset Mortgages
www.moneysupermarket.com
Compare Adjustable Mortgage Rates
www.mortgageloan.com