Which Mortgage Providers have Low Overall Fees?

powerwin

Hi All

Which mortgage providers have low overall fees? I.e. which providers keep their fees down and are most competitive?

General thoughts please.

Thanks

Thrugelmir

A lot will depend on your own financial circumstances as to which lender will consider you. So the choice you may have won't necessarily be the best in the market..

neverdespairgirl

A lot of lenders have different deals - some with huge fees, some with none.

powerwin

Thanks for the replies. I suppose what I am wondering is which lenders market themselves as a "no frills" / "low fee" mortgage provider. First Direct springs to mind, but who are the others? My theory is those who have low fees will also be offering mortgages that are highly competitive products.

Many thanks

Thrugelmir

powerwin wrote: »

First Direct springs to mind,

FD is a subsidiary of HSBC. Both offer extremely competitive products.

However their underwriting criteria and affordability calculations are some of the most stringent in the mortgage market. So its a matter of them choosing you as much as you selecting them for a mortgage. In addition they do have lending caps (amount of new advances) in any given period so even a good application could be declined on occasions.

neverdespairgirl

powerwin wrote: »

Thanks for the replies. I suppose what I am wondering is which lenders market themselves as a "no frills" / "low fee" mortgage provider. First Direct springs to mind, but who are the others? My theory is those who have low fees will also be offering mortgages that are highly competitive products.

Many thanks

First Direct sometimes has high fees - they had one a couple of months ago which had a fee of £1.5k per £400k of borrowing.

opinions4u

powerwin wrote: »

Thanks for the replies. I suppose what I am wondering is which lenders market themselves as a "no frills" / "low fee" mortgage provider. First Direct springs to mind, but who are the others? My theory is those who have low fees will also be offering mortgages that are highly competitive products.

Many thanks

your theory is flawed. If you can find a mix of low fee and low rate that's great. But as a general rule low fee = high rate. Make sure you get the balance right or you could be signing yourself up to years of payments higher than they need to be.

Wh05apk

Fees are only one factor to consider, you need to look at the whole cost over the period, generally higher fees = lower rate, but depending on the size of the mortgage lower fees or rate may be more important, for example if your mortgage is only £30,000 then a fee free deal at 5% will be cheaper than a £1,000 fee and 3% over 2 years, likewise if your mortgage is £500,000 then you would be more than happy paying a £10,000 fee to get the lower rate above.

elbutre

i agree that you should calculate your cost over a set number of years. so if you are a on 5 yr fix calculate total cost including fees and remortgaging fees etc etc.

i did a calculation last week and ended up with a yorkshire building society mortgage at 4.39 fixed, they ahve better fixed rates of 4.09% but the fees in my case were £1500 + legal and all kinds of other fees and the 4.39% had free legal and remortgage fees and only a £495 arrangement fee.

it will save me about £800 over a 5 yr period.

a simple spreadsheet will help you figuring out which product is the cheapest for you.