Mortgage arrangement fees

CaptainOveur

Hi

I recently applied for a mortgage and initially decided to go for a 2-year fixed rate. When I phoned the bank to say that I wanted to go ahead and get the offer they did not mention that they will be taking the arrangement fee (around £900) there and then (although they may have said that a while back when I submitted my application).

The day that the offer came through I decided to change to a 5-year fixed rate. I called the bank and informed them, thinking it is just a small administrative procedure for them. However they now want to charge me another arrangement fee for the new deal and do not want to refund me the fee I've already paid for the first deal. So they basically want me to pay 2 arrangement fees, totalling over £1,200.

So far they have been reluctant to either refund me the first fee or waive the second fee. Is there anything that I can do? Time is very tight as we need to exchange within the next few days?

Thanks

cattie

You might struggle here I feel. The fee was for arranging the mortgage, which the lender did do. Once arranged, you changed your mind & decided to go for a different product, also with an arrangement fee.

koexelek

CaptainOveur wrote: »

So they basically want me to pay 2 arrangement fees, totalling over £1,200.

Yep, money for old rope for the lender....but they are perfectly entitled to do it.
They look at borrowers purely as cash cows and don't care whether things are fair or not these days