Mortgage Arrangement Fees explained and help available from Shire Direct!
Mortgage Arrangement Fees are levied by most lenders these days, especially in instances where the mortgage is a fixed, discount, capped or cashback mortgage product.
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The following article describes Mortgage Arrangement Fees (also known as the Lenders Arrangement Fees) in more detail and how much they might cost and how we might be able to assist you with a mortgage or remortgage.
Table of Contents:
What are Mortgage Arrangement Fees?
So as already mentioned, Mortgage Arrangement Fees are levied by most lenders nowadays, especially in instances where the mortgage is a fixed, discount, capped or cashback product. The Mortgage Arrangement Fee will vary in cost, and will usually be between £250.00 and as high as £2,000 (or more) of the mortgage advanced. To consider the benefits, please see our Mortgage Product Fees glossary page.
Can the Mortgage Arrangement Fee be added to the mortgage loan?
It depends on the Mortgage Lender and the scheme. Most lenders will usually allow the Arrangement Fee to be added to your mortgage, and obviously this can be very useful if you are buying a home for the first time for instance; as your available funds may be very tight!
However, if you are adding the Arrangement Fee to your loan, you should remember that you will be charged interest on this amount for the term of the mortgage. If you can, it is always better to pay this sort of fee upfront.
It is important too that, from the very outset, you clarify all the fees payable, to whom, and if they are are refundable in the event you do not proceed for any reason. You should be aware that many mortgage lenders will not refund Mortgage Arrangement Fees either in the event of you withdrawing, or them declining your application.
How can I check the cost of a Mortgage Arrangement Fee?
The mortgage lender or mortgage advisor arranging your mortgage will notify you of these at the outset of their dealings with you, usually in the form of a Key Facts Illustration (KFI) document.
Can Shire Direct help me any further?
Absolutely! If you are thinking of applying for a mortgage or remortgage, and would like further information on Mortgage Arrangement Fees and other costs, then we'd love to hear from you! One of our qualified Mortgage Advisors would be only too happy to speak with you, and you'll find our approach to be friendly and unstuffy, helpful and professional. So why not give us a call today on 08000 282 281, our Freephone lines are open daily, including weekends until 10pm. Alternatively, why not contact us online anytime, and we'll get back to you at a time that's convenient for you!
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
Are you worried and becoming stressed because you are having problems getting a mortgage or remortgage? Worry and stress no more! Here at Shire Direct we provide tailor made mortgage solutions to suit you, and can usually help with all kinds of circumstances including...
Remember, we're here to help, and would love to hear from you!
Shire Direct and Shire Direct Mortgages are trading styles of Shire Processing Centre Limited which is
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Registered No: 302389. Commercial funding and Secured Loans are not regulated by the FSA.
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