Add fee's or pay cash?

oz0707

Hi all.

You're all pretty switched on here so thought i'd ask your thoughts.
I've raised an amount of cash from a mortgage. There are set up fee's one or two other charges, and the first (not full) months interest. These total about 1400ish.

They sent me a letter with the option of paying these fee's by the end of the month or it being added to the mortgage total. My first intincts were to pay or else I will be being charged interest on the mortgage amount plus these fee's, rather than just the initial loan. But if i'm using the cash raised by the mortgage to pay these fee's isn't that defeating the object of the loan in the first place?!
Any thoughts/perspectives greatly appreciated.

oz0707

any ideas people?

Thrugelmir

Do you need all the cash?

Are you guaranteed to repay within a year?

oz0707

Probably don't need all of it down to the last 1400. Decisions decisions

getmore4less

What are the penalty free overpayments?

If you don't pay now then how long would it take using the maximum overpayment?

The cost of that is the one to use, remember you can get 2% savings so the total cost is less than the mortgage rate.

oz0707

I forgot to add, the product comes with a clause allowing a 50% overpayment within the first year then 10% p.a after that. It's becoming a bit of a no brainer to me.