Mortgage Features - Loan, Mortgage, Remortgage, Secured

Getting stung by fees

There seem to be an endless list of fees when taking out a mortgage, some of which can be avoided by shopping around. These include booking, administration or arrangement fees, which may be charged when the mortgage is being set up. Valuation fees will be charged when the lender decides to value your home. Legal Fees are also a must as you will need a solicitor to make the process of a new mortgage or remortgage official. Mortgage Indemnity Guarantee (MIG) or Higher Lending Fee may also be charged if you only have a very small deposit or you have none at all. However, some of these fees may be discounted or withdrawn as an incentive to sign up to that mortgage product. Valuation fees in particular may be free, refunded or discounted as an incentive.

TIP: Most customers should avoid products with MIG fees.

TIP: Some fees may be refunded, so look out for the offers. However, a product with waived fees may carry a higher rate than one without and will probably cost more in the long-term.

Are you sure about insurance

Many lenders will offer or include buildings and contents insurance. Some lenders will also offer Mortgage Payment Protection Insurance (MPPI), which will cover you for accident, sickness or unemployment (ASU). As is the case with many financial products, you may be able to get a better deal on insurance from somewhere else, such as an independent broker.

Risky business

If your credit history is not something to shout about, you may find getting a mortgage a little tough going. This will include anyone who has mortgage arrears, where they fall behind in their payments, has been bankrupt, has a County Court Judgement (CCJ) against their name or has defaulted or made late payments. However, there is a whole market for people in this position, and it is growing by the year. Your rate may depend on how many marks you have against your name or how long they date back As you would expect though, the rates are going to be higher than standard mortgage rates because of the presupposed risk involved.

Self-employed people or self-certified borrowers who do not offer proof of earnings are also likely to pay more, as once again, they fall under the higher risk category.

Useful Financial Links

Please find below some links that you may find useful from JST Financial. These links are to external sites and will open in a new window.

If you know of any other links that you believe may be of use to our visitors, please contact us.