If you have been thinking that the mortgage lender makes money from the interest charged on the money then think again. In reality mortgage lenders make lot of money from the fees charged at the beginning, middle and end of the process. In most of the cases the lenders waive one of the many charges if you borrow from them. These fees are charges in the form of admin fees and described as booking, set-up, reserving, and arrangement fees.

charges mortgage

There are different ways in which such fee is charged. The popular way is charging a flat fee which can be some hundred to several thousand pounds. At the time of writing you might agree £600 but by the time the whole process is completed you can be actually charged for £1000. Hence you have to be careful here.

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