ASK441: Is this fee too high? PLUS: Will leverage always be the answer?

The Property Podcast

Rob Bence & Rob Dix

Investing, Education, Business News, News, Business

4.8 • 2K Ratings

🗓️ 13 August 2024

⏱️ 7 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Let’s dive into this week’s Ask Rob & Rob, answering two new listener questions… (0:44) Andrew's an expat investor who’s been quoted £5K for his mortgage arrangement fee, which feels steep to him. His broker says it’s due to the added risk of being overseas. He’s worried that if needs to remortgage every few years at a similar cost, it could eat into the benefits of an interest-only mortgage, especially with inflation. He turns to Rob & Rob for advice on whether this fee is fair and how it might affect his portfolio strategy. (4:24) Adam’s curious to know whether The Robs foresee a time when mortgage companies might link their loans to inflation, potentially reducing the advantage of leverage in property investment. Enjoy the show? Leave us a review on Apple Podcasts - it really helps others find us! Sign up for our free weekly newsletter, Property Pulse Send us your question by calling us on 013 808 00035 and leaving a message with your name and question (normal UK call rates apply) or click here to leave a recording via your computer instead. Find out more about Property Hub Invest

Transcript

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0:00.0	Hi, I'm Rob. And I'm Rob. And this is Ask Rob and Rob.
0:07.0	Welcome to Ask Rob and Rob. It's Tuesday, so we are back to answer two more of your property questions.
0:13.2	Andrew and Adam are going to get their questions answered this week, but first a quick reminder
0:17.2	of how to send in a question of your own.
0:19.4	If you would like your question answered, then go to property hub dot net
0:24.0	forward slash ask that's property hub dot net forward slash ask there you can leave a
0:30.6	message directly in your computer you can find our phone number to leave as a voicemail,
0:34.4	or you could submit a Ritzen question which may appear in the Sunday Times.
0:38.3	Very exciting. What is exciting now though, is our first question is ready let's hear from Andrew.
0:44.7	Hi Robin Rob I have a question around mortgage arrangement fees and the
0:50.5	associated costs of getting a mortgage.
0:53.0	So I'm currently an overseas investor.
0:55.0	I'm a UK national originally, an expat.
0:58.0	And the quote I'm getting for an arrangement fee at the moment
1:02.0	is 5,000 pounds which I think is kind of high but
1:06.2	obviously it's weighted by the fact of my risk and things like that as well is what my
1:11.2	broker is telling me that I'm obviously abroad.
1:14.0	Just a question around the inflation point.
1:17.2	So I know you mentioned that it's good to get an interest only mortgage
1:20.6	because the inflation would basically pay for that sort of cost over time if you
1:25.2	like. But if I'm going to be remoraging every couple of years, potentially if I do stay away
1:30.8	from the UK at a cost of 5,000 pounds.
	...

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