Completion Fee

king100

I am remortgaging my house and as it stands I am being charged a completion fee of £2500 which I have no idea what it is being used for?

I have the old mortgage to pay off and a secured loan to pay off.

Does any one have any suggestions on the matter?

So far I have an

admin fee of £295.00
TTF of £60.00
Completition Fee £2500.00

Also we have had a valuation that they arranged for us (by the new mortgage company) 3rd partied out. Now they want to send one of their own valuers out to value our house?

Could this mean achange on rates etc.

_Andy_

Completion fee / arrangement fee - effectively a fee which is 'buying' the rate you want.

dwsjarcmcd

Sorry if this sounds harsh but did you not think to ask your lender or broker to explain what this (sizable) fee was for?

king100

Thats exactly what i was going to do today but at 8.00 at night neither are there. I just wanted to get an idea if this sounds expensive before i confrunted the lender.

_Andy_

Why 'confront' them - you've obviously applied for the product and would've had a KFI with the fees etc before going ahead.

king100

_Andy_ wrote: »

Why 'confront' them - you've obviously applied for the product and would've had a KFI with the fees etc before going ahead.

I have the KFIs but there is absolutely no breakdown of what the completition fees is about?

Its like getting a plumber quote and all he puts down is cost for bathroom is £10,000 - surely you would like to know what that is made up of?

_Andy_

As I've already stated - the completion fee is 'paying' for the interest rate.
Broadly speaking, the higher the fee, the lower the rate (and vice versa).
I'm surprised you applied for the product before querying it.

happybroker

some lenders are charging high "completion" fees and often these come with the lowest headline rate of interest. Effectively you are paying this amount of money to benefit from a lower rate of interest that, say, a fee free deal.

if you don't owe a significant amount of money it may not be in your interest to proceed with this rate. Unfortunately, if you have been direct to the bank which it sounds like you have, then a mortgage "seller" may well skirt over these things where as a mortgage "advisor" would go into a little more detail as to what course of action is in your financial interest.

king100

tyvm

All answered