Nervous?

Lipsticklady

Hi i am soooooooo nervous!
I am getting a 100% mortgage to purchase a house at £102,500. I have been offered a fixed rate repayment mortgage with Mortgage with 'Accord Mortgages' at a rate of 5.39%.


On the fee page there are the folowing:
1) product arrangement fee £495.00 (which is added to the loan)
2) Basic valuation fee £260.00
3) Current redemption administration fee on full repayment of loan before end of term £199.00
4) CHAPS Fee- for electronic transmission of loan amount to our legal adviser paid at application-£30.00
5) Legal Fee Quote -£117.00

What is 3) and 4)???? Bit unsure about these and would appreciate any comments.

We are getting this through a broker who will receive a proportion £333.12 for arrangiung this mortgage deal.

Am i getting a good deal? i have to sign the papers this evening and feel sick with nerves!

herbiesjp

CHAPS FEE is the cost of transferring the money from the lender to the solicitor

Redemption administration fee is the cost of closing the mortgage down (not including any Early Repayment Charges) - so if you were to re-mortgage away at the end of the fixed rate you would have to pay Accors £199

loobs40

Are you sure you are not being charged a Higher Lending Charge by the lender ? (HLC) I was gobsmacked when I checked the terms of my partners mortgage (its coming up for renewal) to find that the lender had added £1650 to the mortgage as protection for them in case he defaulted. He also had a 100% mortgage

herbiesjp

This Accord scheme does not charge a HLC

meanmachine_2

There doesn't seem to be anything out of the ordinary there, except... the ridiculous interest rate!!!

5.39% seems very high, particularly when it looks like the economy is heading for a recession (cue rate cuts). But I guess that's the price you pay for a 100% mortgage.

I know this is all academic, but if you could have found just 5%, you could have paid at least 1% less.

Anyway, good luck!

Lipsticklady

ummm....we really wanted a fixed rate as to be honest we could afford any unexpected fluxuation in the monthly costs.

Lipsticklady

In the additional features section they have stated as incentives :

1) Higher Lending charge-we will pay the higher lending charge of £3,075.00
2) Following the completion of your mortgage we will refund the standard valuation fee of £260.00. However this excludes
-any 2nd/subsequent valuations AND
-the cost of any homebuyers surveys or building (structral) surveys where such cost exceeds the standard valuation fee.

Lipsticklady

i have just been told that the survey has been done on the house this afternoon. Apparently, it was a fellow from Reeds & Rains that conducted it! Strange....Mortgage accord are the lenders!

herbiesjp

Reeds & Rains will be the surveyors instructed by Accord.

What seems a little strange is that you are under the impression you are signing up this evening for a mortgage, and the valutaion has been done this afternoon? Has the adviser, already submitted an application for you possibly on-line? Did you know that they had done this for you?

Lipsticklady

well the advisor visted last week however, there are forms that i need to date and sign sat at home which are needed to progress with the mortgage. I did pay for the valuation to be completed last week.

Lipsticklady

i am concerned at what one MSE picked up "'current' describing the admin fee".Ideally, we didnt want any additional charges like this. Plus, although it 'Currently' is £199, whos sue it will be that in 3yrs time!