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A cautionary mortgage tale ... |
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Wednesday, 13 June 2007 |
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There was a story covered in 7Days recently which is worth repeating here. This is what the reader asked ...
Q. I went to a mortgage broker to help me buy property here in Dubai and the mortgage broker charged me a very large ‘up front’ fee, 4% of the mortgage value. They gave me a mortgage approval letter so I paid my deposit on the property. I went to the bank to complete the deal and they told me they would not lend me any money. I showed them the letter from the mortgage broker and the bank told me that the money was not the mortgage brokers to lend, it was the banks. What did I pay the fee for?
For the answer and to take part in our survey,
A. You pay a fee for a satisfactory mortgage completion, not on application. You may be required to pay an application fee but that should not be too expensive. The broker’s mortgage approval letter is worthless, it has to come from the Lender. If you are being asked and you are happy to pay up front completion fees for a mortgage, make sure you have the mortgage first, approved by the Lender. With regards to the fee, there are far better deals available to you and you will not be expected to pay it up front.
This story was covered in 7Days and it is one we hear regularly when property investors come to our offices for qualified mortgage advice. If you are not sure, do not part with your money and if you want a second opinion, drop by our offices to speak with one of our qualified Mortgage Brokers. Why not take part in our survey at the side of this message. |
