Cashback Remortgages · Mortgage rates
Should You Add the Product Fee to Your Loan?
Many deals let you add the product fee to the loan instead of paying it upfront. It eases the immediate cost but means paying interest on the fee.
The trade-off
Adding the fee avoids paying it now, but you pay interest on it for the mortgage term unless you overpay, so it can cost more overall. Paying upfront avoids that interest if you can afford it.
On a small loan a percentage fee added to the balance also nudges up your loan-to-value.
How to compare
Compare each deal on total cost over the period — payments plus the fee, whether paid upfront or added. A lower rate with a big added fee is not always cheaper.
Sources and further reading
General mortgage information, not a personal recommendation. Lender criteria and scheme rules can change. Ask an adviser about your circumstances and a solicitor or tax adviser about legal or tax questions. Your home may be repossessed if you do not keep up repayments on your mortgage. Most buy-to-let mortgages are not regulated by the FCA.
Discuss the next step for your mortgage
Understand your options before you make a decision.