Monday, Oct 30, 2006

Mortgage Fees Rocket

Independent: Arrangement Fees: Get the sums right, and it can pay to spend 1,999 on a mortgage

The cheapest home loan rates are carrying ever-bigger price tags - in the shape of vertiginous arrangement fees. For example, a competitive two-year fixed-rate deal from Abbey, with interest charged at 4.45 per cent, now has a 1,999 fee; ditto Birmingham Midshires' two-year fix at 4.49 per cent.

Posted by uncle chris @ 10:35 AM (558 views)
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4 Comments

1. the bald man said...

I do not understand why arrangement fees are good for BTL? Surely what matters is the overall cost of borrowing.
I suppose what they mean is that the arrangement fee can be rolled up into the capital advanced. What a great deal you can then pay interest on the arrangement fee!

Monday, October 30, 2006 10:43AM Report Comment
 

2. kpjcomp said...

IOW: It's 5.2% not 4.49%.. And that's without taking into account of putting 2000 into savings.

Monday, October 30, 2006 12:18PM Report Comment
 

3. European-bear said...

Its like buying a Ryanair ticket...seems to be cheap until you add on the taxes and fees

Monday, October 30, 2006 02:53PM Report Comment
 

4. Nohpc said...

Money grabbing barstewards is what they are. 1999 is a ridiculous arrangement fee. Probably takes less than an hour for them to arrange it with a simple computer credit check. I think this fee should be waived for first time buyers. I am looking at switching from one A and L mortgage to another and they still charge 1,500pounds for probably 5 minutes work grrrrr!!!

Monday, October 30, 2006 11:05PM Report Comment
 

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