Slash your spend on fees
1) Pay the arrangement fee upfront
If you add your fees to your mortgage, you’ll pay interest on them for the rest of your mortgage term – which will cost you more overall. When you take out a new mortgage, pay the fees upfront and eliminate this cost.
2) Never miss a payment!
Many lenders slap borrowers with a monthly fine if they fall into arrears or are late with a payment – in some cases more than £100 just for a letter to inform you that you have fallen into arrears! Make sure you set up a direct debit to pay your mortgage each month, and always ensure there is sufficient cash in there to cover your bill.
Missed or late payments are also a terrible thing to have on your credit record, so do everything you can to avoid incurring one!
3) Avoid early repayment charges
Don’t sign up to a remortgage before your initial period has come to an end or you will likely be whacked with a hefty charge of many thousands of pounds.
You can also be hit with an early repayment charge if you overpay by more than your lender allows so make sure you know just how much you can overpay before increasing your payments.
4) Don’t pay more than you have to for a valuation
Valuation fees vary enormously between lenders. Most lenders operate a sliding scale for fees based on the property's price, but their tiers are all very different. As well as having tiers for standard valuations they may also have additional costs if you want to upgrade to a Homebuyers Report or full survey through them.
And when you get a valuation, some lenders also charge an administration fee for this service! Be sure to include these fees when researching which deal is cheapest for you.
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