Why flat lender arrangement fees can make a big difference

Author: Mando Administrator Posted on: 02 December 2011

The answer is simple really. Currently the average cost of variable lender fees is around 1% of the loan amount but some can go as high as 2.5%. If you are looking to borrow a large amount, flat lender arrangement fees can save you money.

Look at the table below to compare a flat lender fee of £1,999 against a typical 1% fee on a variety of loan amounts:

Loan Amount	1% Lender Arrangement Fee	Potential saving/(overpayment) on a Flat Lender Arrangement Fee, of say, £1,999
£100,000	£1,000	(£999)
£150,000	£1,500	(£499)
£200,000	£2,000	(£1)
£250,000	£2,500	£501
£300,000	£3,000	£1,001
£400,000	£4,000	£2,001
£500,000	£5,000	£3,001

 

Why not take a look at the latest best buys; at the moment there are quite a few products with flat lender fees. And some with none at all!