Halifax product fee

rommy

I am a first time buyer and currently in process of arranging a mortgage via broker on a London help to buy property. The amount required is £157k.

Out of the options given to me by broker Halifax is coming up the cheapest with 1.34% APR. But the product fee is £995 plus valuation etc for a total fees of £1500 which seems rather high to me for the amount of mortgage required.

Do you think £1500 is a sensible fee for a £157k mortgage?

kingstreet

Probably not.

Go for the 1.74% without the product fee. Why Halifax in particular?

Alternatively, why not a lender with no product fee, a cashback and maybe even a free valuation - Skipton, Nationwide, Virgin Money, Santander?

DML025

£1500 seems pretty high but you have a good rate, you can probably find lower fees but slightly higher rate, it depends what your priority is. There is usually the option of adding the fee onto your mortgage, though consider you will pay interest on that..

getmore4less

rommy wrote: »

I am a first time buyer and currently in process of arranging a mortgage via broker on a London help to buy property. The amount required is £157k.

Out of the options given to me by broker Halifax is coming up the cheapest with 1.34% APR. But the product fee is £995 plus valuation etc for a total fees of £1500 which seems rather high to me for the amount of mortgage required.

Do you think £1500 is a sensible fee for a £157k mortgage?

what terms?

how much is not the key, fees are trade off against rate over the promotional period.

eg. on a 2y fix over 25y the equivalent no fee(if both have valuation)
£157,995 @ 1.34% £620pm £147,211
£157,000 @ 1.67% £620pm £147,208

or totally fee free

£158,500 @ 1.34% £622pm £147,682
£157,000 @ 1.84% £622pm £147,687

getmore4less

kingstreet wrote: »

Probably not.

Go for the 1.74% without the product fee. Why Halifax in particular?

Alternatively, why not a lender with no product fee, a cashback and maybe even a free valuation - Skipton, Nationwide, Virgin Money, Santander?

1.34% against 1.74% and £995 fee

over 2 years the fee is better by £261 interest only.
(157000 *0 .004 * 2)

It reduces as the payment goes up(repayment)
Still over £100 better off on a term as short as 10y

rommy

getmore4less wrote: »

what terms?

how much is not the key, fees are trade off against rate over the promotional period.

eg. on a 2y fix over 25y the equivalent no fee(if both have valuation)
£157,995 @ 1.34% £620pm £147,211
£157,000 @ 1.67% £620pm £147,208

or totally fee free

£158,500 @ 1.34% £622pm £147,682
£157,000 @ 1.84% £622pm £147,687

Its 34 year mortgage of £157k with fixed rate of 1.34% for first 2 years and than halifax standard rate of 3.74%. The £1500 fee consist of £430 for the valuation which seems a standard fee Halifax charges on all its products and its non-refundable.

I had a look on Halifax site and most of the mortgage products they are offering them with £495 fee. Maybe I have to pay this higher fee beacause the broker is not charging me anything and gets paid from Halifax if the deal gets through.