Mortgage arrangement fees report form London Mortgage Broker, London Mortgage Advice Tuesday, 3rd November 2009

Twenty per cent approximately, that is up to 19 lenders currently charge non-refundable booking fees on some of their mortgage products ranging from £100 to as much as £999.

To cover their costs in processing applications and booking preferential rates -lenders are increasingly imposing non-refundable fees and if borrowers go through to complete the application they are not affected.

If they reserve a product for a customer lenders will argue that they face costs in processing applications and that is alright in itself.

However if customers are turned down for a mortgage or are forced to pull out of a deal it will be an extremely unpleasant surprise to find that not getting the mortgage you wanted is going to cost you a lot of money.

The way to deal with this is to add the fee to the mortgage when applying and once you are certain that the mortgage will go thriough you can then arrange to pay the fee upfront if you wish or indeed leave it added to the loan.

Using a mortgage broker will usually solve these problems