Arrangement fees ..... extortionate....

dimbo61

I have (because I have one myself ) been telling people on here for the last 12/18 months to go for a long term fixed 5/10 year deals under 6% either offset or allowing overpayments.
With the recent 0.5% cut in the BOE base rate I thought have I been giving poor advice !
Then another poster informed the mortgage board how the tracker deal he was after had jumped up 0.5% the day after the BOE cut the rate to 4.5% so he was now looking at 4.5% plus 1.59% still pushing the deal to over 6% and thats on a tracker!
Mortgages are going to get more expensive for the next 2/3 years
The 4.19/4.5% deals are long gone and many people face some big mortgage increases so if you can OVERPAY and reduce your debt GOOD LUCK

Gangstabird

I took out a fixed rate several years ago at 6.3% for 5 years. I lost £2,200 roughly because the interest rate didn't go up as I expected. That was OVER 5 years.

Recently remortgaged with a fix for 5% for 10 years, well last year and we are quids in so far. I didn't want to play with the interest rate as I want to live here forever.

If you are going for a 2 year fixed rate then you have to look at whether you think that £1400 is worth it for what the interest rate might be. It's around £50 per month over that two years and you might not pay that in interest rates. That's how I see it anyway. If you are fixing for a long period and want to know how much you are going to pay each month, then go for it.

Extortionate is not the word. Rip off comes to mind.

grogdog

you are only paying the interest so you are on an interest only mortgage, what is there to apologis for what did i say that wasnt correct , you cant afford the repayments which you should have considered when taking out the mortgage that rates rise and allowed for this.

the point was more general than specific to your case PEOPLE HAVE MORTGAGES WHO CANT AFFORD THEM AND SHOULDNT HAVE GOT ONE IN THE FIRST PLACE.

ps i am far from ignorant, i would say someone who gets into a situation that means they cant afford mortgage payments would be more ignorant!!, i note you have made no note of personal circumstances ie loss of job that meant you couldnt afford payments on repayment, so i presume it is just rate increases that have caused this.

JF77

grogdog wrote: »

i think this is a prime example of why we are in the problem we ar today, people getting interest only mortgages as they couldnt afford repayment and now they are all f****d. it will not be until people like this and greedy btl people lose their properties that we will be abl to move on.

harsh but true , this person shouldnt have a mortgage they cant afford the premium and brokers have a lot to answer also to.

and it seems tha tit is vryone elses fault but their own

How dare you make such a judgement on someone!!!

You have no idea what this persons situation is and you are making assumptions.

He has 75% LTV for god's sake!!!

I have had a mortgage for 10 years and during that time spent 2 years on interest only and why? because I was on maternity leave thats why.

On another note 2-3 years ago I would have agreed with some posters that high fees were acceptable as you did not have to take the deal you could go elsewhere but, in the current climate this is far from easy so maybe existing lenders should give existing borrowers a break.

dimbo61

No swearing on this board please people are only looking for help not abuse.

grogdog

dimbo61 wrote: »

No swearing on this board please people are only looking for help not abuse.

dimbo that is not abuse to any specific person just a general comment about alot of people in similar circumstances to the op, in terms of affording their mortgages on a repyment basis so they all have intestest only mortgages with no repayment vehicle.

dunstonh

I still think its wrong and is extortionate to want that amount (sometimes up to £5K) just for switching deals with the same lender. I understand that you think not so we can beg to differ here.

No-one is forcing you to pay £5k. There are enough no fee and small fee (typically 250-500) deals around to suit those that dont want higher fee options.

However, I think you missed the point of the high fee deals. They have lower interest rates. A £100k mortgage deal with a fee of £2500 can typically be cheaper than a £100k mortgage deal with a fee of £250.

Small mortgages may not be better off that way but they have the choice not to pay the fee.

What you seem to be suggesting is that those with larger mortgages should not have the choice of a lower interest rate, explicit fee because you think its unfair.

That is a bit like saying that no-one should drive a Ferrari because its unfair that you cant pay for it.

If that deal is not right for you then you choose not to buy it. You buy the deal that is right for you. Having choice is a good thing.

dimbo61

125% mortgages who needs to blame brokers ?
I do beleive some bright spark at a bank or building society came up with that idea.

JF77

dimbo61 wrote: »

125% mortgages who needs to blame brokers ?
I do beleive some bright spark at a bank or building society came up with that idea.

Here Here!

feisty1

marshallka wrote: »

My current lender is Intelligent Finance and its about 75% LTV.

If 4.5 income multiples are ok u can find better out there (without a repayment vehicle in place)