Fees upfront

atlasmm

Hi,

Our application was put in with Leeds BS at 95 LTV first time buyers and we specified that we’d like to add the fees to the mortgage. 

They’ve come back to the broker and asked that we pay this fee upfront, is this common?

Also at what point is this due, as our broker said it’s when the solicitor draws down on the deposit so it’s added to the deposit but I thought it was payable seperately upfront?

Thanks

housebuyer143

atlasmm said:

Hi,

Our application was put in with Leeds BS at 95 LTV first time buyers and we specified that we’d like to add the fees to the mortgage. 

They’ve come back to the broker and asked that we pay this fee upfront, is this common?

Also at what point is this due, as our broker said it’s when the solicitor draws down on the deposit so it’s added to the deposit but I thought it was payable seperately upfront?

Thanks

If you are taking 95% ltv they probably won't allow the fees to be added because it takes you over the LTV max at 95%. 

If you have to pay it up front they will normally want it at application and won't process the application without it. 

dunstonh

They’ve come back to the broker and asked that we pay this fee upfront, is this common?

What are the terms of the mortgage deal?  i.e. do they allow adding it to the mortgage or require it to be upfront?
Or it may be that adding it to the mortgage takes you over the LTV limit.

K_S

atlasmm said:

Hi,

Our application was put in with Leeds BS at 95 LTV first time buyers and we specified that we’d like to add the fees to the mortgage. 

They’ve come back to the broker and asked that we pay this fee upfront, is this common?

Also at what point is this due, as our broker said it’s when the solicitor draws down on the deposit so it’s added to the deposit but I thought it was payable seperately upfront?

Thanks

@atlasmm Generally speaking, like most other mainstream lenders, you can add lender product fees to the loan with Leeds.

However, if your loan size goes all the way up to 95% LTV, then you wouldn't be able to add the fees to the loan as they have a "Maximum LTV if adding arrangement fee to the loan" of 95%.


In an ideal world, this would be flagged by their system when the case is keyed in and the adviser ticks the option to add the fee to the loan, but it clearly doesn't if this only came up on manual review.

If you don't want to pay it upfront, consider reducing the loan size by enough that you can then add the fee to it and stay inside 95% LTV.