The Property Podcast ASK494: What do I do with these mortgage fees? PLUS: Use a bridge or buy cash?
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Sep 16, 2025 In this installment, listeners dive into the dilemma of mortgage fees as a new investor grapples with paying them upfront versus adding them to the loan. The discussion examines how these fees can impact cash flow and property acquisition strategies. Another listener weighs the pros and cons of using bridging finance versus refinancing inherited property for faster growth. Valuable insights on wise asset selection and investment opportunities in property shine through, making it a must-listen for aspiring investors!
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Danny's Capital Release Question
- Danny used capital release from his home in 2025 to fund BTL purchases through a limited company.
- He asked whether to pay £4–6k mortgage fees upfront or add them to the loan.
Pay Upfront To Minimise Interest
- Pay mortgage fees upfront to minimise long-term interest costs when possible.
- Add fees to the loan only if preserving cash today is more important for growth.
Small Fees Were Trivial, Big Fees Matter
- Adding a £5,000 fee to a mortgage at 5% costs about £250 a year in interest.
- Higher fees today make the add-to-loan decision more significant than when fees were small.