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L&C advise to add arrangment fee onto mortgage...
evosy1978
Posts: 652 Forumite
I was told of a mortgage today by L&C and the arr fee is £495.
They said it would be better to add the fee to the mortgage and as the particular mortgage has an over payment facility just to pay it off after the first month if i really wanted to pay it off.
If I pay upfront and the mortgage falls through Ive lost this money. This was their advise. It makes sense. I would like to know if I want to pay it off in the first month as an overpayment, then would this be near enough the same as paying it upfront...?
Thanks
They said it would be better to add the fee to the mortgage and as the particular mortgage has an over payment facility just to pay it off after the first month if i really wanted to pay it off.
If I pay upfront and the mortgage falls through Ive lost this money. This was their advise. It makes sense. I would like to know if I want to pay it off in the first month as an overpayment, then would this be near enough the same as paying it upfront...?
Thanks
0
Comments
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That is a very common way of doing and the advice is good.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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If you don't want to add to mortgage then pay it on completion - you just need to increase your deposit to your solicitor by £495.00. This saves the hassle of making a one-off payment in the first month.
If the fee is addable or payable on completion, then there is no way this fee will be incurred if the purchase falls through.0
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