Mortgage Question

luvgonzo said:
Just emailed. The lender pays the company commission, my next question was does that get added onto my mortgage and if it does that show in the mortgage illustration and the reply was no it doesn't get added and we don't pay for it.

That sounds ok to you? You seem to know what you're doing.
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You don’t pay the brokers commission no. They get paid by the lender for placing your business with them. Usually a percentage of the total mortgage.

With every mortgage there is a set up fee the lender charges you. The fee varies depending on the fixed term and the rate. They sometimes throw incentives in such as valuation or solicitor costs. The set up fee of the mortgage is what gets added to the mortgage. So if you had a 150k mortgage and over the last five years the balance is 142k. They charge a £1200 set up fee your new mortgage will be £143,200.

A good broker will show you the best rates available with varying fees so you choose the one that suits your needs. You may decide that a higher rate with less or no fees is best as you pay your mortgage down. Or some want more expendable income so pick cheaper repayments with and essentially increase their mortgage every renewal.
 
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Libby said:
Yeah been meaning to do that for a while, just never get round to it.


Not that that's a standard amount.
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To be fair to you mate, the chemist really should tell you. I had the same problem, was costing me a fortune, until a chemist said one day. They gave me a reciept, and when I got my certificate I got my money back.
 
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luvgonzo said:
@Sweats. Getting 5 year fixed @1.84%

I can get @1.74% on a 2 year

Looked pretty good to me?
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what are the set up fees vs the repayments?

which lender is it? If you’re planning on staying get on the 5yr fixed. Just work our what you pay off the mortgage over each term. Sometimes it’s a false economy on a lower rate for a shorter period with another renewal cost of switching. Only issue with a longer fixed term is if your circumstances change and you need to move. Unless it’s transferable which still incurs a fee for moving to another property.
 
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Sweats. said:
what are the set up fees vs the repayments?

which lender is it? If you’re planning on staying get on the 5yr fixed. Just work our what you pay off the mortgage over each term. Sometimes it’s a false economy on a lower rate for a shorter period with another renewal cost of switching. Only issue with a longer fixed term is if your circumstances change and you need to move. Unless it’s transferable which still incurs a fee for moving to another property.
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I will ask more questions, thanks for this, good advice.
 
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Julian Edelman said:
Not sure but it was the best around surprisingly, better than Nationwide and Skipton .
There wasnt broker fees as it was done direct !
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There is normally a fee even if you’re an existing customer. I opted for a slightly higher rate with no fees as worked out I paid more off the mortgage over the fixed term.
 
Tel said:
I get free prescriptions, I’m medically exempt from paying for some reason. Must be my massive cock.
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So it means you are either;

Over 60!

under 16 <laugh>

or pregnant <whistle>

or have certain medical conditions <cough>
 
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