fee free mortgage?

carpool72

quick help please?!

spoke to nationwide yesterday about renewing our mortgage as our fixed term is coming to an end - looking at the 5 year fixed which has a £499 fee. we'd rather not pay a fee & my oh has been told by colleagues this morning that banks are offering to pay us to take out a mortgage rather than charging a fee - which banks are these I ask? Can anyone tell me if there is such a thing as a fee free deal, or is this a) an urban myth or b) a frost to get our business which will ultimately cost us more?

I need some info quick as oh is pressuring me to get on to Nwide & demand the fee be dropped...

Thanks
Caro

forgot to say, our mortgage is about £27400

dwsjarcmcd

Yes there are many fee free deals. The likes of the Abbey and Yorkshire Building Society being two. You will pay for these via increased rates, however, with the small mortgage you have, they may be worth looking at.

David

andrewbrydon

Hi
With a small mortgage of that size do not pay a fee

herbiesjp

Go back to NAtionwide and ask them what deals they can offer you with no fee

The rate will be slightly higher, and may work out cheaper than paying the fee

What was the rate offered?

lisahud82

BEWARE ****

I spoke to an Abbey rep on the phone last Tuesday to discuss mortgage quotes. I was told of the 6.29% Fee Free Mortgage. I asked him numerous times that there are definately no fees as I couldnt quite believe it.

I have received the application form through and indeed there are none if you take out the Fee Free mortgage. Just a £225 admin fee when you leave Abbey.

BEWARE **** - that there are 18-month extended tie-in periods on some of the Fee Free mortgages with Abbey!! So confirm with them that these are not included and check your application before signing it!

sally06

Brittania BS are offering a 5yr fixed rate mortgage @5.94 without a fee. Does anyone know about this deal? (I saw it in the mail on wednesday, under 'best buy mortgages') I'm guessing there must be a 'catch' somewhere!

lauratrinity

No catch as far as I can tell. I am taking this one out myself and have done all the calculations and it seems to be ok. Mind you, this rate has now been withdrawn...

KTF

lisahud82 wrote: »

I have received the application form through and indeed there are none if you take out the Fee Free mortgage. Just a £225 admin fee when you leave Abbey.

"Fees free" tends to mean no product or valuation/legal/etc fee rather than no fees altogether.

When comparing deals you should take into account all fees inc the exit ones so see which is best.

reformedEffortMaker_2

lauratrinity i went into the South Woodford branch of Britannia today, the manager stated that the 5.94% fixed rate will still be honoured for people who hand in a completed application by 26th July

UK007BullDog

If your mortgage is very low like the one from the Original Poster then the fees free deal is the one to go for.

HOWEVER nothing is FREE in this world so you will PAY for the priviledge through HIGHER interest rates.

Nationwide and any of the other lenders will offer you a fees free deal but will not give you their best rates fees free. If you kick up a fuss they will say "that you are free to look elsewhere". However they know that a small mortgage like that most other lenders would probably offer you the same kind of fees free deal and then there is the hassle of moving the mortgage, surveys, solicitor etc. Which you can have free but the interest rate will be much higher than a deal with a fee.

Alternatively if you really want a low interest rate, add the fee to the mortgage and do a couple of overpayments to pay off the fee and then get the benefit of the low rate, maybe once you got into the habbit of overpaying you might want to continue and pay off your mortgage quicker and save quite a bit on interest.

MiM

I'm already with Brittania and need to switch as current deal is ending. Just phoned and they say the above deal has gone. Best they can offer me is 5.99% plus £399 arrangment and £100 admin, five-year fixed.

They did offer without fees too but at 6.34% so the monthly payment would actually be £3 more than just accepting the fees and adding them on, so sounds daft to me.

I owe about £42,000 with 13 years left to pay on a house worth £150,000. Also, I might move soon and would not have to pay for porting the deal, which is important to me.

Does the above sound like a decent deal? I know it depends what you want but I just want a good deal. Would also be nice not to have to go through bother of moving building society, plus you get the members' bonus cheques from Brittania every year.

Any thoughts much appreciated.