What Fee's For Remortgaging Do I Pay?

Chunkee_Munkee

I've had a few calls from Natwest who I'm currently with on an offset mortgage and they've said they can reduce my monthly repayments. They've gone through the 2yr, 5yr and 10yr fixed rates and monthly repayments, which are less and said they pay solicitors fees. However, they have said that I will have to pay an application fee of £1299 or because I'm already a Natwest customer then it wil be £999 for me.

The only reason I'm questioning it is because I dont think I've ever paid an application fee before when getting a new mortgage or remortgaging and also my boyfriend has suggested it maybe something new they've brought in as a way to get back the bank charge reclaims that customers have been demanding.

Any info greatly welcomed

dunstonh

Fixed rate mortgages have had arrangement fees for decades. What has been happening though is the profit margin on the interest rate has been getting tighter so the arrangement fee has been going up. In some cases lenders dont make a penny on the interest and its only the arrangement fee that turns them a profit. With the credit crunch, lending has been harder for them to obtain and more expensive as well (look at Northern Rock to see just how hard).

If you really want to see if remortgaging is a good idea or not then you wouldnt use natwest. You should see a mortgage broker who is whole of market and they can see how the deals stick up. Remember then have around 20,000 mortgages available compared to Natwests dozen or so.