Second Mortgage Fees Outrageous?

Elytra

Hi all,

I'm in the unfortunate position of having to get a second mortgage to consolidate some toxic, unplanned debt (about £50k).

I've found a decent deal that reduces my outgoings and has no ERC, but the broker concerned is going to charge a fee of about £5,000!

Is there any way to get a second mortgage without being charged such an outrageous fee? I've had a look around and it seems like it's almost impossible to go direct to these smaller banks (my existing mortgage broker won't lend, apparently for affordability reasons, even though LTV is below 60%).

ACG

I assume the £5k fee is the broker fee or is it the lenders fee?

You should be able to get that down by at least a grand, maybe 2 but you will probably need to shop around as £5k fees are not uncommon in that part of the market.

I do not think there are many secured loan lenders who will deal direct with customers, but I could be wrong.

financegeek

is that just the broker fee? or broker / lender / valuation fee all rolled into one?

if it's just the broker fee, shop around as you should be able to find a cheaper option

Pixie5740

Elytra wrote: »

Hi all,

I'm in the unfortunate position of having to get a second mortgage to consolidate some toxic, unplanned debt (about £50k).

I've found a decent deal that reduces my outgoings and has no ERC, but the broker concerned is going to charge a fee of about £5,000!

Is there any way to get a second mortgage without being charged such an outrageous fee? I've had a look around and it seems like it's almost impossible to go direct to these smaller banks (my existing mortgage broker won't lend, apparently for affordability reasons, even though LTV is below 60%).

You don't have to get a second mortgage to consolidate debt. You don't need to consolidate your debt at all, it rarely works anyway. Get yourself over to the Debt after Wannabe board instead.