No Fee Mortgages FAQ
What are no fee mortgages?
No fee mortgages are mortgages which do not feature any application fees.
Will I pay a more expensive rate for a no fee mortgage?
Yes, unfortunately you might do. Mortgages with low or no fees tend to come with higher interest rates.
Will I need a larger deposit for a no fee mortgage?
Not necessarily. There are a number of no fee mortgages on offer at a range of loan to values (LTVs). This means it's possible to access a no fee mortgage regardless of the size of your deposit.
What criteria will I have to meet?
You'll have to meet your lender's standard criteria including having a good credit score and being within its age limit. Your lender will also assess your income and outgoings to make sure you can afford the mortgage.
What are the benefits of a no fee mortgage?
Taking out a no fee mortgage means you can avoid paying a lump sum fee. While it is possible to add this fee onto the mortgage this will mean you're actually paying interest on it for the whole of the mortgage term.
Are there any downsides to no fee mortgages?
The main downside with no fee mortgages is you're likely to pay a higher rate so it's important to work out whether the money you'd save on fees outweighs what you'll lose having a higher rate. It's also worth bearing in mind that no fee mortgages will only make you exempt from paying fees related to the mortgage product, you'll still have to pay a valuation fee and legal fees.
How can I compare no fee mortgages?
You can use Know Your Money's comprehensive and easy to use comparison tables to compare no fee mortgages.