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Remortgage BTL quote - arrangement fee of 10k!

Hello, 
The mortgage broker has come back with a quote for remortgaging our property - currently being rented out so it's a BTL mortgage. Unfortunately need to take equity out to put towards a deposit (living in rented accommodation atm). Broker has come back with a quote with a £10k arrangement fee (from the lender, not him). Could someone confirm this is normal as it seems very high? 
Details are:
5 Year fixed
3.79%
Value: £460,000
Loan: £337,000
Term: 25 years interest only 
Many thanks. 

Comments

  • Mark_d
    Mark_d Posts: 2,748
    1,000 Posts Second Anniversary Name Dropper
    Forumite
    £10k fee for this scenario (74% LTV, interest only, BTL) is completely normal
  • missb_4
    missb_4 Posts: 18
    Part of the Furniture 10 Posts Combo Breaker
    Forumite
    Oh that's good to know thanks for that!

  • housebuyer143
    housebuyer143 Posts: 4,300
    1,000 Posts Fourth Anniversary Name Dropper
    Forumite
    edited 11 May 2025 at 9:06PM
    That's why the rate is so low, but as your loan is very high it's probably the cheapest option for you.
  • Hoenir
    Hoenir Posts: 7,742
    1,000 Posts First Anniversary Name Dropper
    Forumite
    5 Year fixed 3.79%

    That's highly competitive rate. The high product fee is a means by which the lender is able to target a particular segment of the market
  • missb_4
    missb_4 Posts: 18
    Part of the Furniture 10 Posts Combo Breaker
    Forumite
    Thanks so much for taking the time to comment everyone - it's so helpful! 
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