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Mortgage arrangement fees

CaptainOveur
Posts: 1 Newbie

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
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
0
Comments
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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.The bigger the bargain, the better I feel.
I should mention that there's only one of me, don't confuse me with others of the same name.0 -
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 daysI am a Mortgage adviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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