Mortgage Arrangement Fee.

former_student

I realise that from the outset I may be wrong and my bank may indeed be in the right, however I wanted the views of someone with a little more knowledge that me.

I recently took out a residential mortgage with a bank, I now however want to rent out my house, the bank have advised that I will have to take out a new mortgage with additional arrangement charges.

Is it at all possible to get this second set of arrangement fees waived?

dunstonh

Is it at all possible to get this second set of arrangement fees waived?

Not if the bank doesnt want to.

These fees are retail purchase charges. To ask for a refund or getting them waived is similar to going to Currys and asking them to discount the price on a new TV because you bought a TV from them a few years ago.

former_student

dunstonh wrote: »

Not if the bank doesnt want to.

Much as I thought.

These fees are retail purchase charges. To ask for a refund or getting them waived is similar to going to Currys and asking them to discount the price on a new TV because you bought a TV from them a few years ago.

Not quite the same as I have only had the original mortgage for some weeks and I am returning it to them for a different one, however I do understand what you are saying.

Has anyone ever heard of a bank acting in a manner favourable to the consumer in such circumstances or is this a contradiction in terms?

lincroft1710

Although perhaps "not totally favourable to the customer", the bank's attitude/policy is not unreasonable. Some lenders will not allow a change to a BTL mortgage unless the property to be mortgaged has been owned for 6 months, so in this respect they are "favourable to the customer".

And a few months ago Currys weren't even discounting on multiple purchases!

dunstonh

former_student wrote: »

Has anyone ever heard of a bank acting in a manner favourable to the consumer in such circumstances or is this a contradiction in terms?

Does it matter?

You currently have a contract for a residential mortgage for a primary residence. You now want to break the contract and take out a commercial mortgage instead. Its not the bank that is changing anything. Its you. Thats the harsh reality of it.

That said, some banks dont penalise quite as high as that but that is the choice of the bank.

former_student

Thanks Guys.

If the worst came to the worst and I had to incur the arrangement fees, would I be able to offset them against any tax I pay as part of the properties income?

lincroft1710

I think you can only offset the mortgage interest against tax, but if I'm wrong no doubt someone will correct me.