mortgage help

deano78

hello all, first time poster after some help with my mortgage please. We had a 2 year fixed term with natwest which ends in november. To renew they want £1000 as a fee for every new deal, or a one off fee of £1500 if we have an offset mortgage. Could someone please advise how hard it is in the current economic climate to get out of this £1000 fee? I've phoned a few banks today but none can help til monday and this £1000 thing is starting to worry me. I explained that we dont have savings to offset so we've mad an appointment to see natwest on monday. Can I stuck to my guns and insist we'll go elsewhere? or will everyone want this kind of payment.
Thanks in advance.

hethmar

Check out moneysupermarket for the current rates. Some have no arrangment fee at all - others up to £2k.

If you are safe no risk buyers I cant see why you couldnt think of remortgaging with another lender.

deano78

thats good news, thanks. We paid a hefty deposit on our house so only owe 49k with 19 years left.

deano78

it gets worse! main reason for my wife visiting the bank today was because we wanted to borrow 5k more on the mortgage cos we're having central heating put in and the bank noticed our fixed term ends in november. she's just handed me a breakdown of the banks fees, get a load of these. dont forget this is to re-new with them, not move. to arrange the fixed term offer, a grand. fee for setting up the extra 5k..... £1149!!!!!! think they're gonna get told to shove it on monday and we'll re mortgage with someone else for the higher value and one lot of set up fee.

herbiesjp

Are they charging you two fees then?

Sounds like you might well want to find a different lender.... and quickly!

Some lenders are starting to put some of their rates up, so you might want to get a whole of market broker to look at this quickly for you, as they can normally apply op-line straight away and make sure you get the deals before they go up

opinions4u

It's been said on here many times, but let's say it again:

Large fee = disguising a large rate by quoting a small one.

4.49% for 2 years with a 3% fee really = 5.99% for 2 years with no fee (in fact, slighlty more due to when the fee is payable).

Where a fee is a flat amount (e.g. £1,000) then it is better value for a larger loan and poorer value for relatively small loans (e.g. it's 0.1% on a £1m mortgage but 2.5% on £40k mortgage).