Fees - added to mortgage or paid up-front?

Mokka

Most lenders will give you an option of adding to the loan or paying up front.
The logical thing would be to pay up front, but as kingstreet says, if anything goes wrong and the mortgage offer is withdrawn you lose the money. THat's why many people decide to add to loan.

getmore4less

Mokka wrote: »

Most lenders will give you an option of adding to the loan or paying up front.
The logical thing would be to pay up front, but as kingstreet says, if anything goes wrong and the mortgage offer is withdrawn you lose the money. THat's why many people decide to add to loan.

Makes no sense to pay up front, the costs are the same,

Better to pay as late as you can by adding to the loan and borrowing less.

Mokka

getmore4less wrote: »

Better to pay as late as you can by adding to the loan and borrowing less.

The flaw in this thinking is that by adding to the loan you will be borrowing more.

getmore4less

Mokka wrote: »

The flaw in this thinking is that by adding to the loan you will be borrowing more.

rubbish.

need to borrow £100k fees are £1k and you have the cash which you pay the fees with so no cash

borrow £99k add the fees still borrowing £100k and have no cash

Adding fees is a neutral exercise if done properly.