When you are considering a remortgage, there are a number of fees that building societies might not spell out as much as borrowers might like them to. They are always mentioned at some point and in the end may add up to quite a lot of cash. But remortage tables in their basic form wont spell them out. So when you are trying to a href=http://www.comparemortgagerates.co.uk/index.php target=_blankcompare all mortgage rates/a through online charts, dont forget to delve more deeply to see what hidden fees you might unearth.br /
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To understand what these fees are going to end up costing you, it is worth either asking an independent financial advisor for help or at the very least get a model of what the total repayments will be, including all charges.br /
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Heres some examples of what you might want to be watching out for when trawling through the mortgage tables in search of a href=http://www.comparemortgagerates.co.uk/ target=_blankinterest rates/a.br /
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Exit Fees – if you do not maintain the mortgage to the end of its term and instead pay it off early then the building society may try to charge you an exit charge to cover their paperwork costs that are involved in closing the mortgage. This may even be charged at the end of the mortgage whether it is paid off early or not. Previously these have been low fees that dont really add up to much in comparison with the figures involved in a mortgage, but some building societies have hiked up these fees to try to make more money. This is taking advantage of the small print saying that fees can be increased and can result in incredible rises. br /
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Standard Variable Rate – this is the standard mortgage rate that the lender will charge you once your introductory period is up. It is normally around a couple of percentage points above the standard base rate. This is where the lenders make their cash through those customers that dont try to change mortgages when the introductory offer finishes. If you are on the standard variable rate and the tie in period has passed, then it is high time to look at those remortgage charts.br /
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Higher lending charge – long gone are the days of the 125% mortgage, or at least until the building societies forget how badly they had their fingers burnt this time around. Most of the remortgage charts show the best buy deals and have various hoops to jump through, such as not lending more than 75% of your new homes value. If you are borrowing more than the cutoff, then the bank may charge you a higher lending charge.br /
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Early redemption fees – if you want to end your mortgage earlier than the offer or tie in period, there is usually an early redemption charge. This might be displayed as an amount of cash or so many months interest. Quite often after the tracker or fixed rate is over there is a tie in period during which you cannot move from the standard variable rate without incurring this early redemption charge.br /
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