Quickie about mortgage product fee

lvm

Hi,

I think I know the answer but not 100% sure.

My mortgage advisor said I'd have 30 days to pay my Abbey mortgage product fee without penalty but having just read the paperwork, turns out it's 14 days and I've missed the deadline.

Anyway...having read in most places that it's advisable to pay it, I'm wondering if that applies to me.

Is the only benefit that it doesn't count towards your 10% overpayment in the first year?

My situation is that I have no intention of overpaying this 3.99% mortgage for a good few years - while I'm overpaying my 4.49% mortgage.

So unless I'm missing something, I should just forget about it??

If there's another reason to be paying it, I could certainly try backdating a cheque and sending it to them and see if that would work...

TrickyDicky101

I am not following - what does your product fee have to do with overpaying your mortgage?

If you don't pay the fee in the agree timescales, I presume your mortgage agreement will set out what penalties will apply. These will be separate from any Early Repayment Fees.

kingstreet

The only downside is you'll be paying interest on the fee until such times as you decide to pay it off.

TrickyDicky101

kingstreet wrote: »

The only downside is you'll be paying interest on the fee until such times as you decide to pay it off.

Ah so the default is to add it to the mortgage balance but if repayment within 30 days then this isn't counted as an early repayment of the o/s mortgage and thus doesn't form part of your 10%/£500/whatever overpayment allowance?

Apologies for my misunderstanding OP

lvm

Perfect, thank you!