Some mortgage rates have a product fee but the amount of the fee can vary. Usually the larger the fee the lower the interest rate you will be charged. The product fee is added to the mortgage when the mortgage starts, which means you can either pay the fee off or leave it on there. If you pay it off within 30 days, no interest will be charged on the fee. If you leave it on your mortgage, then interest will be charged on it until it is paid off.
Here are some key points to take into account when weighing up rates against fees.
The other option is to take a rate with no product fee. The rate will be higher but you'll avoid a product fee which you'll be charged interest on if it's added to your mortgage. Here are some key points to take into account, when looking at choosing a rate with no fee.