The average mortgage arrangement fee has risen to £1,522, according to research out this week from Moneyfacts – the highest figure recorded since the company started monitoring such data.
Record low mortgage rates
While mortgage rates have fallen to record lows, particularly on fixed-rate deals, arrangement fees have continued to rise. A typical five-year fixed-rate mortgage for those with a 25 per cent deposit now has an average fee of £1,258 compared with £964 at the start of the year.
However, borrowers shouldn’t necessarily let hefty fees put them off: those with large mortgages may find that it is worth paying the bigger fee in order to access a rock-bottom rate.
Do the sums – or better still, get someone else to do them for you
What is important is to look at the bigger picture when it comes to choosing a mortgage, and look at all the fees associated with the deal as well as the rate in order to compare like with like. But it’s not just what you pay that is important: will the lender consider complex income streams, such as retained profits in a business and share dividends, when deciding how much you can borrow? Is interest-only available or what about a loan greater than £5m – can the lender accommodate that?
Anderson Harris can do the sums and point you in the right direction when it comes to choosing the lender most suited to your situation. It may be that a private bank proves to be a much better fit than a high-street lender – we have access to many private banks and specialist lenders as well as the mainstream high-street lenders. If you are asset rich but have limited income and are purchasing or remortgaging a high-value property, and require discreet advice, we can help.