Some fees will require payment upfront on application. The likes of valuation fees and some booking fees. However, where an arrangement fee is due, we would advise adding this to the mortgage so you don’t have to pay it upfront.
This works mainly as a safety net for you. Should anything not go according to plan and the mortgage doesn’t complete for any reason, you aren’t then chasing after a refund with the lender.
A lot of people think you’ll be charged interest on that fee amount, but if you make an overpayment by the sum of the fee alongside your first mortgage payment, you have reduced your mortgage balance by that amount and therefore that extra interest isn’t paid.
