fees for renewing fixed term mortgage please help!!!!

nat32_2

My fixed term mortgage comes to an end in April, i have called the Abbey to renew my fixed term and have been told i will have to pay a fee of £299.00
Can they do this and why do they do this?
I am not changing anything to do with my mortgage just simply fixing the interest rate.
Does this then mean every time i fix my interest rate they can keep charging me?
Because im in debt i dont want to change mortgage lenders as i fear i wont get a good deal if any.

dwsjarcmcd

I'm afraid they can nat. They do this because the level of fee is all wrapped up in the overall product 'price'. To be fair, this would be considered a low fee in today's world.

You could ask them to
- Add the fee to the loan but you'll be paying interest on it or
- See what other no fee options they have, although the rate will probably be higher.

How long is the fix for? Because it is likely that you will pay these everytime you fix, also most would suggest fixing for longer terms (5 years +) to avoid any negative effects on LTV's should house prices reduce and also to give you a decent period of stability.

David

beecher

You could also go onto the SVR which won't cost you anything. You're getting a new deal at the moment which is why it will cost you £299 which isnt' that bad really - most are £999 from what I've seen

nat32_2

wow sounds like i should count myself lucky that the fee isnt higher! Thanks for the info guys.