mortage fees,costs

creole_2

hi,,just a quick question about mortgage fees,costs.
Is it best to pay them up front,,or have them added to the mortage loan,,,or would the money that would be used to pay up front be better put in to a cash isa,,say paying 6.25%
thank for any clarity or advise,,,much appreciated

_Andy_

Normally it's best to add them to the loan then to overpay that amount straight away on completion.

Locoblade

If your mortgage rate is lower than the savings rate (after tax - not applicable for an ISA obviously), then in theory its better putting it on the loan then saving the money, but the profit you'll make on say £1k of fees is going to be negligible (about £15 over 5 years if the rate difference is 0.25%) and there's always the risk if its in a savings account that you'll spend it, so I'd put it on the loan then pay it off immediately if you can.