Financial services platform Stipendium announces that it has launched a mortgage product that ensures homeowners can remortgage an unlimited number of times without brokerage fees for a one-time cost.
Its Remerge product costs £99, but the company adds that customers may have to pay additional fees, “depending on individual circumstances such as the fee for leaving a fixed term contract. [loan]”.
The company says the mortgage for the loan is arranged by advisors with access to 12,000 products from 90 lenders. He adds that the loan product gives homeowners access to a personal mortgage expert and comes with a built-in financial health and wealth check.
The platform says owners typically repay four times over a 25-year term, at an average total cost of £9,960 over that period.
He adds that brokerage fees make up around £300 of a mortgage transaction, which is a lifetime cost of £1,200.
According to data from the Bank of England, 501,501 mortgages were made in the UK in the past 12 months to March.
The platform points out that, based on these figures, brokers’ total remortgage costs for homeowners come to £150m a year and, when multiplied over a 25-year term, they amount to over £3.7 billion.
Stipendium co-founder and managing director, Christina Melling, said: “Brokerage fees are a big part of a homeowner’s mortgage and remortgage costs, as another layer in the huge overall cost obtaining real estate financing.
“And on an ongoing basis, given the typical propensity to re-mortgage many times over our lifetime, we may forget how much this item is really costing us and Stipendium set out to solve this problem for the consumer.”