Product fee takes me into higher LTV band - Halifax

ernest1983

Good morning all,
I am looking at retention deals with Halifax and currently sit at 74.9% LTV
If choosing a product with a fee, will the fee be added to the loan amount to determine what rates are on offer?  Or does the fee get added after the new product is chosen?
The typical £1499 fee takes me back over 75%, so do I need to make an overpayment beforehand to make sure?
I've searched other threads and it seems that it depends on the lender, so any experience with Halifax?
Thanks!

K_S

If you add the product fee to the loan, it will not take you into a higher LTV band.

That's how it is as an broker, not sure if it's any different when direct (shouldn't be).

Edit: Just to be clear, talking about Halifax here.

grumiofoundation

K_S said:

If you add the product fee to the loan, it will not take you into a higher LTV band.

That's how it is as an broker, not sure if it's any different when direct (shouldn't be).

We were told (applied direct to lender that doesn't accept broker applications) that adding the product fee would impact LTV. So we did what I outlined below to avoid paying upfront. 

ernest1983 said:

Good morning all,
I am looking at retention deals with Halifax and currently sit at 74.9% LTV
If choosing a product with a fee, will the fee be added to the loan amount to determine what rates are on offer?  Or does the fee get added after the new product is chosen?
The typical £1499 fee takes me back over 75%, so do I need to make an overpayment beforehand to make sure?
I've searched other threads and it seems that it depends on the lender, so any experience with Halifax?
Thanks!

If fee does impact LTV (check with lender). You can add fee to mortgage (so as to avoid paying up-front and avoid any issues with claiming back if purchase falls through) but then just request to borrow less so as to keep yourself in the 75% LTV band.
Practically are borrowing the same, you just pay the amount of the fee in extra deposit when complete. 

K_S

grumiofoundation said:

K_S said:

If you add the product fee to the loan, it will not take you into a higher LTV band.
That's how it is as an broker, not sure if it's any different when direct (shouldn't be).

We were told (applied direct to lender that doesn't accept broker applications) that adding the product fee would impact LTV. So we did what I outlined below to avoid paying upfront.

@grumiofoundation Sorry, should have made it clear that I'm referring to Halifax.

Seashell517

ernest1983 said:

Good morning all,
I am looking at retention deals with Halifax and currently sit at 74.9% LTV
If choosing a product with a fee, will the fee be added to the loan amount to determine what rates are on offer?  Or does the fee get added after the new product is chosen?
The typical £1499 fee takes me back over 75%, so do I need to make an overpayment beforehand to make sure?
I've searched other threads and it seems that it depends on the lender, so any experience with Halifax?
Thanks!

Originally, I reduced my loan and added the fee to the loan to keep under the 5x salary limit with Halifax. The extra £1.5k was then not needed up front. I've had my broker get my offer re-issued with a fee free product now though (these launched the day after I got my offer.)