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arrangement fees-mortgage
andybartliff
Posts: 5 Forumite
trying to switch from capital and interest mortgage to just interest only mortgage with "first active"-seems easy enough but have been quoted £399 for "arrangement fee" and £30 fee to "release funds".are these fees valid or simply extra costs that we don't need to pay?
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Comments
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For just a change of repayment type I don't believe an arrangement fee is normal. I think most lenders just charge an administration fee for this. If you are applying for a new product (new fixed rate or whatever), then yes you would need to pay the arrangement fee.0
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Yes I'd assume so, but the original post is suggesting that he is just switching from repayment to IO and doesn't mention re-mortgaging.0
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It sounds like a remortgage going on here or product switch and not just a switch between interest only and repayment.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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spoke with "first active" again this morning and am assured that both fees are actually refunded on completion of the switch to the "new" mortgage-good news!thanks for your replies and interest.0
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