A bit of advice on arrangement fees...

canny-cat

HSBC has this 'supersaver deal' going on, whereby you can get the mortgage rate of 4.99% when you pay a 600pound arrangement fee, as opposed to paying nothing and receiving interest at 5.19% (it's a 100% mortgage).

My partner and I applied for a mortgage at our local at 116k at 4.99% and paid the 600 pound arrangement fee.

A week later the sale fell through. We went straight to the bank who told us "no problem"; just come back when we find something new and "it wont matter if it's a bit more or less".

A week later we found a new house and went back. We need an additional 12,500 pounds for house #2. The advisor has now said that we'll have to take the additional 12,500 out at the higher interest rate - 5.19% - OR pay the entire 600 pound arrangement fee again!

The offer we signed said very clearly the 600 pounds was non-refundable, which is fine - but we were under the impression the arrangement fee was for the mortgage itself as a whole, and not a specific quantity of money (especially when you consider the advisor told us it wouldn't matter if it was "a bit more or less") - we were never told otherwise, and the mortgage advisor never explained this eventuality to us.

We intend to write to the bank manager to (politely) complain, however I wondered if you'd be able to offer some advice on whether this (i.e. my comments on the misleading or non-existant advice we received, above) is the best way to approach the situation, or if there is a better "argument"?

Thanks

Catherine x

payless

"bit more or less " - thats was a bit wishy washy - well suppose ithe £12500 is over 10% increase in borrowing ( some might say thats more than a bit)

Anyway , if the rest of the product is the same ( same period/ ties) than taking the topup on the higher rate is only £2.08 pm more, so bear that in mind ...

canny-cat

Yeah, I guess it's only 50quid over the two year term... just seemed a tad cheeky!