Mortgage Arrangement Fees.

John_Wadham

When my first two 2 year fixed mortgage ran out, for the privelidge of taing out a further two year fixed loan with the same company, at a higher fixed percentage interest, I was charged a fee of £2,500, which upon reflection seems rather extortionatefor quite a simple parerwork exercise, not involving any evaluations, searches etc!
Is there any possibility of a back claim on this to get it reduced to a reasonable level? Has anyone any previous experience of fighting this?
Tyhank you.

_Andy_

No there isn't. You aren't paying for the admin, you're paying for the rate/lender getting the funds.

dunstonh

I was charged a fee of £2,500, which upon reflection seems rather extortionatefor quite a simple parerwork exercise, not involving any evaluations, searches etc!

Unlikely that was for admin. As Andy says, thats almost certainly the cost of the deal. Not the cost of the mortgage being arranged.

Is there any possibility of a back claim on this to get it reduced to a reasonable level?

Not a chance. Its not unreasonable either. If you buy a product that costs £2500 and pay £2500 then why should you get any money back for being unfair.

You were not forced to buy that product. You chose to buy it and agreed to pay the charge to get that fixed rate. The lender has to finance that rate and they have two main ways to do this. The actual interest rate payable and the arrangement fee. Some go with a higher arrangement fee and lower rate or vice versa. Higher arrangement fees, lower rates suit larger mortgages. Lower arrangement fees and higher rates suit smaller mortgages.

Mrs_Bumble

Sorry agree with all of the above comments. When you were offered the deal you chose to take it, the lender did not twist your arm and make you have it.