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Mortgage fees for additional borrowing.
cocobryce
Posts: 2 Newbie
Hi, I switched my mortgage to HSBC in Jan09 and there was a booking fee of £999. I now wish to borrow more money against the value of my property my LTV is under 60% still so I get the best rate 2.24% above the bank of england rate but they want to charge me another £999 booking fee (which can be added on to the mortgage). Does not seem fair? Any bankers out there.
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Comments
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Does not seem fair?
Why?
You bought a mortgage in Janaury and you paid for that mortgage. You now wish to buy another mortgage and why should you not pay for that?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Agree with dunstonh, you are now looking for another product and that product has a fee, the bank are a business.I am a Mortgage Adviser
You 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 -
Yes banks are a business and they should charge a fee but consider this in Jan09 I switched my mortgage from Leeds building society to HSBC (I was a new customer) . This involved loads of form filling, credit checks, copies of bank details, passport, wage slips...numerous phone calls, letters back and forth, surveys etc and eventually my mortgage was switched 92K ...arrangement fee £999. I now wish to borrow another 10K...arrangement fee still £999. They have all my details! They have to do about 10% of the work they had to do in JAN09. So I ask again is it fair to charge exactly the same fee?0
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Its not about the work involved it is about the profitability of the tranche of money used for that product. The profitability is made up of the fees involved and the interest that they will make. Lenders are not looking to make lending easy at the moment, so fees are everywhere.
So I am afraid that is the way it is.I am a Mortgage Adviser
You 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 -
The arrangement fee isn't for the work as such, it's for the rate.0
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