quickie: at what stage am i expected to pay mortgage arrangement fee?

hamblettamaud

i have been sent a mortgage offer. it was arranged by my broker.

however, the arrangement fee is too large and i've found a better deal by myself.

am i expected to pay the arrangement fee? i'd rather not as it's over £2,000.

thanks.

bobby-boy_2

Hi I am very lazy and usually tack the arrangement fee onto the mortgage so it only becomes payable when I accept the actuall funds from the lender.

chickmug

hamblettamaud wrote: »

i have been sent a mortgage offer. it was arranged by my broker.

however, the arrangement fee is too large and i've found a better deal by myself.

am i expected to pay the arrangement fee? i'd rather not as it's over £2,000.

thanks.

The answer will be in the paperwork you signed with the broker. If you are lucky there will be a nominal 'pull out' fee. If you are unlucky you will owe the whole amount. Some brokers T&C's say if they get an offer in accordance with your requirements you will owe the whole fee, from that point, even though it is payable at Legal Completion or if you pull out. Many brokers will go on to say if you are not able to take up the offer, because of a purchase falling apart, they will arrange a new mortgage within the same fee structure.