Fee Free UK Mortgage Deals

Fee free remortgage deals don’t always offer the borrower good value for money. So is it worth paying lender arrangement fees to obtain a better mortgage?

During the past couple of years we have seen a sharp rise in the cost of setting up a mortgage. UK lenders now rely on initial booking and arrangement fees to maximise their profit. Whilst borrowers may consider paying mortgage set up fees a necessary expense when buying a home, many are less keen to pay further fees to move mortgage lender or renegotiate at the end of the initial mortgage deal.

So the question remains, is it worth paying fees to obtain a better interest?

Your best bet is to speak with a whole of market mortgage broker, who will compare the headline rate of non-fee charging products with those deals, which incur booking and arrangement fees. Your broker will consider the total cost of the mortgage over the term of the mortgage deal. As a general rule borrower’s who need to borrow less than the UK national average may find fee free mortgages cheaper.

Caution: remember a fee free mortgage does may not mean that you everything is free. If you are buying a home your Solicitor will usually be working for both you and the lender. An element of your Solicitors bill will be for work carried out for the benefit of your lender. When consider a remortgage you must check carefully to see whether the lender is offering a free legal service and valuation of your home.