Mortgage Admin fee £1495

sable23

Hi, I am applying for a mortgage of £75,000 and they are charging me an arrangement fee of £1,495. I am concerned when I pay this fee because if the sellers pull out the fee is non-refundable. I have already lost £600 in fees as a person buying my house pulled out at the last minute. Can I take out an insurance to cover me if the seller pulls out?

_Andy_

Is the arrangement fee definitely payable only in advance? If not it would be better to add it to the loan.
I'm not aware of any insurances that would cover it.

koexelek

_Andy_ wrote: »

Is the arrangement fee definitely payable only in advance? If not it would be better to add it to the loan.
I'm not aware of any insurances that would cover it.

Agreed. Very few lenders want the arrangement fee up front... though i think HSBC do, on occasion

JayZed

£1,495 seems like an awfully hefty arrangement fee on a loan of £75K - equivalent to a whopping 2% of the capital. Are you sure this is the best deal for you?

Conrad

Sable - you need to be clearer if you want us to help - write your posts in the knowledge we know nothing about you.

So number 1, who is 'they' a lender or a broker?

RTNI

Just out of interest is it a tracker mortgage? Like JayZed says, it seems quite an amount of an arrangement fee.

sable23

Hi again

I went through a broker who originally told me this arrangment fee of £1,495 would be added to the loan, then a week later he told me that Abbey (the people I'm taking the mortgage with) wanted this fee upfront. The mortgage is a tracker, interest only, with no tie ins etc. This is because I am still selling a house and when this is sold I will be paying this mortgage off quickly. The house I'm purchasing is £123,000.

Looks like I might have to find another mortgage that adds the fee to the loan.

Thank you for all your replies.

jill2002

You are taking the Flexible Plus mortgage from Abbey. The fee if definately payable up front, but has an indefinate completion date. So if this property falls through, then you can use it on another property - for as long as it takes !!! (of course still subject to status and valuation of the property). There is no completion deadline with this mortgage.