arranement fee?

emma_jayne_2

Hiya
Had an email from my financial advisor saying that Halifax would be charging me a £399 arrangement fee for my mortgage. Is this normal? Do all lenders charge this?

Thanks

EM

spurs_nut

yes, prices very with lender.

JoeK_3

emma_jayne wrote: »

Hiya
Had an email from my financial advisor saying that Halifax would be charging me a £399 arrangement fee for my mortgage. Is this normal? Do all lenders charge this?

Thanks

EM

Is this for a mortgage or a remortgage?

What stage of the application are you at?

JoeK

luckyfool

No not all lenders charge this. You could choose another product offered by Halifax with a £1,499 fee, or still another with no arrangement fee. What you will find is that the interest rate will vary along with the fee. Depending on your mortgage loan size the most cost effective option will vary. The same is true of other lenders with flat fees as high as £2995 around, and other lenders charging arrangement fees of up to 3% of the mortgage. There is plenty of choice so you are completely free to tell your broker you want him or her to find you a fee free deal or justify the deal recommended over any fee free options out there. Any broker worth their salt should be able to demonstrate through a true cost comparison that the product recommended is the most cost effective or suitable for you.

One thing to clarify by checking the illustration and the brokers initial disclosure document is that the fee is actually a lender arrangement fee and not a broker fee charged by your advisor.