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Mortgage account fee
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Teganflower
Posts: 1 Newbie
Hi I am about to remortgage with the same lender and was just reviewing then offer When I noticed that i need to pay a £225 account fee. Was wondering if I have to pay it if I am staying with the same lender thought it would be for new accounts only.
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Comments
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Depends on the terms of the product you are re-mortgaging to.
But I imagine if they are charging the fee then you'll have to pay it.
As always, shop around. A different lender might be keen for your business and offer a better deal. But compare all costs:
* interest rate
* application/admin/account fees
* legal costs
* Valuation fee
etc0 -
My lender (the Nationwide) has really good offers when I have to renew but does the same. They offer a range of loans; some with fees and some without. Those with initial set up fees usually are slightly cheaper in terms of % interest, so lower repayments, and those without usually have a marginally higher % rate. Sp if I'm renewing for a short period of years, it can be cheaper to go fee free. I just have to run the numbers0
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Are you sure your existing mortgage isn't already subject to the account fee?
If it is, you won't pay twice. You only pay it on final redemption, either when the mortgage is repaid, or you leave the lender by remortgaging.
BTW, it's a customer retention product, not a remortgage.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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