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Mortgage set-up fees
spandles
Posts: 129 Forumite
We are due to pay off our mortgage at the end of the year, but would like to move house in 3-5 years time.
Should we pay off completely then shop around for a new mortgage and associated costs, or keep a little 'ticking over' to avoid set-up fees by just extending the mortgage when we move?
My limited research suggests a new mortgage could cost around £1000.
Ta
Should we pay off completely then shop around for a new mortgage and associated costs, or keep a little 'ticking over' to avoid set-up fees by just extending the mortgage when we move?
My limited research suggests a new mortgage could cost around £1000.
Ta
0
Comments
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It will make no difference. If you are moving house it's a whole new mortgage and whatever fees apply to the deal you choose.
The trick is to find the best combination of rate and fees to suit your individual circumstances and you can only do that at the time.
Keeping your current mortgage open has no real benefits, unless you want to defer the discharge fee which might be payable on redemption?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Kingstreet is 100% correct - and some banks don't even charge a discharge fee so you may not even be saving anything.Before you ask, yes, I work for a bank, but no, I didn't get a bonus!0
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