Adding Product Fee to Mortgage

copperclock

If anyone is interested, we've been through this process now and the answer is you can switch your product online, add the fee to the mortgage, and NOT undertake any further affordability checks. Whole thing goes through instantly.

Cheers!

getmore4less

copperclock wrote: »

I understand that adding the fee to the mortgage is more costly than paying it upfront.

borrow more pay more interest so will cost more but then you have less savings.


If you are comparing a fee against a no fee it makes a tiny difference in the comparison calculations as you either have the money or you don't.

when doing the comparisons you must either add the fee or borrow less on the no fee to start from the same cash position.

Only at the boundary of the fee/nofee borrowing will it make a difference in which is best and in that case the size of the payment will swing it.

Lucky_Duck_2

Adding the produce fee to mortgage means that, in effect, you will be incurring interest on it for the lifetime of the mortgage. Something I'd rather avoid.