BTL Mortgage Fees

by Readers Question

10:34 AM, 3rd June 2015
About 3 years ago

BTL Mortgage Fees

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BTL Mortgage Fees

We seem to pay a large amount of fees on our buy to let mortgages. BTL Mortgage Fees

I note from yahoo the US Government has done away with mortgage fees and 18 years fixed rates at 3%. Some BTL lenders will not add the fees to the remortgage and demand fee payments up front.

I made an appointment to remortgage with Barclay’s/Woolwich yesterday and received an email back to have my credit and debit cards ready to pay the fees.

Sincerely

Rudolph



Comments

Mark Alexander

10:38 AM, 3rd June 2015
About 3 years ago

Hi Rudolph

It is quite normal for mortgage lenders to charge application fees to cover the costs of valuations and their associated administration up-front. Is this what you are talking about or something else?

If you are unhappy with the deal that Barclays are offering then you should talk to an open market mortgage adviser - see >>> http://www.property118.com/member/?id=314

Comparing UK mortgage terms to those offered in the USA is like comparing apples to eggs. Long term fixed rates (up to 30 years) have been available in the USA for as long as I can remember.
.

Carol Thomas

11:32 AM, 3rd June 2015
About 3 years ago

You can get much better deals by going to an Independent Mortgage Advisor. My last two mortgages came without any set up charges and the advisors don't charge either. Good luck

Mike Wang

12:57 PM, 3rd June 2015
About 3 years ago

Reply to the comment left by "CaZ " at "03/06/2015 - 11:32":

That sounds great, do you mind sharing who they are?

Rudolph Banton

13:07 PM, 3rd June 2015
About 3 years ago

Hi Mark and CaZ,

Thank you for your responses!

Yes Mark you are on the button. I was told by a adviser from the same company I could add the fees to the mortgages. Then I invested the capital elsewhere! I will look at the website. Thought loyalty from 1970 would get a brownie point!

CaZ your advice taken on-board thank you!

Regards

Rudolph.

Carol Thomas

13:13 PM, 3rd June 2015
About 3 years ago

Loyalty and Money - polar opposites!

Colin Dartnell

13:23 PM, 3rd June 2015
About 3 years ago

The large fees on some mortgages are there to offset the low rate being offered. A two year fixed rate mortgage of £100,000 with £2,000 fees is equal to another 1% on the interest rate in each of the first two years, making the deal less appealing than it first looked.

Go to a broker they can crunch the numbers and they have a much wider range of mortgages to offer, including offers from lenders that may not be available direct to the borrower. Even then don't take anything as gospel without checking for yourself, go home and search the internet before signing up.

Some lenders want the valuation fee paid up front, which is why Barclays might want your credit card at the meeting, they still might be willing to add the other fees to the mortgage.

Carol Thomas

17:49 PM, 3rd June 2015
About 3 years ago

Reply to the comment left by "Mike Wang" at "03/06/2015 - 12:57":

By all means. They were with the Skipton BS and the Clydesdale BS. They were done thru my advisor/broker and he wasn't paid a very large amount by either of them!

Rudolph Banton

20:40 PM, 3rd June 2015
About 3 years ago

Colin

Cheers sound advice from Mark CaZ & Colin. Appreciate!

Best Regards

Rudolph.

Neil Robb

19:21 PM, 7th June 2015
About 3 years ago

Hi All

I don't mind having to pay admin cost etc but not the fees which can be thousands.

Rudolph Banton

22:08 PM, 7th June 2015
About 3 years ago

Neil

I really don't have any issue with paying admin cost either. I am unable to get my head around the legality of fees when it seems such a rip off. With technology the world is a smaller place; not sure why we are unable to get better mortgage rates from further afield!

Rudolph.


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