Hi all,
The mortgage arrangement fees can be and usually is added to the mortgage balance, but is of course still an expense. How is it properly accounted for in the self-assessment? I have seen people add the whole amount for the year the mortgage/remortgage was taken out, thus adding a large sum to the finance cost for that year and going substantially down the next. The second approach I've heard of is to take the arrangement fee and divide it across the number of fixed years that the mortgage extends over (so, for example, divide the mortgage arrangement fee over five years if a five year fix). The final approach, I've read about (I think on this very forum), is to divide it over the full term of the mortgage (say, 20 years), but I'm not sure what would happen in case of a remortgage in a few years time, if this approach is taken (the full arrangement fee would never appear to be used up as finance cost)?
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