Mortgage Product Fees Added to the Loan

markduf

Can anyone give me advice about adding a mortgae product fee to the end of the loan. A company called 'centro client review' have been in touch with me and informed me that providers are breaking the 2006 Consumer Credit Act by allowing the product fee to be added to the loan. They offer to manage a reclaim for you but charge an initial £149 then claim 30% of any compensation.

I cannot seem to find anything about this on this website and would appreciate advise?

Thanks in advance.

Dom3663

Did you want to add the charge to the mortgage? If you did I can't see how you could ever claim.
With mine though, I was given the option, I chose to add it to the mortgage but if I do want to pay it off, it will just take 2 over payments

magpiecottage

Mortgages are covered by the Financial Services and Markets Act 2000, not the Consumer Credit Act and regulated by the Financial Services Authority (other borrowing is regulated by the OFT).

Either way, the lender must have an established Complaint Procedure and must give you the chance to go to the Financial Ombudsman Service if they cannot resolve a dispute relating to a loan regulated by either Act at the time of the events giving rise to that dispute.

However, for a first charge mortgage, it is almost certain that the lender produced a "KeyFacts" document that explained the charges and this would allow the lender or broker to defend the claim.

If you have a legitimate complaint, do it yourself and get 100%. If not then why waste £149 having somebody confirm it?

dunstonh

A company called 'centro client review' have been in touch with me

warning: check the claims forums as this company frequently comes up as one that tells fibs to get you to put claims in.

and informed me that providers are breaking the 2006 Consumer Credit Act by allowing the product fee to be added to the loan.

Fibs like that. (i.e. they are wrong).

I cannot seem to find anything about this on this website and would appreciate advise?

Thats because adding of fees to the mortgage is allowed.

The lender gives you the choice to pay up front or add to the mortgage. You make that choice. They also allow you to repay the fees at any time without incurring charges on top (i.e. lets say after 1 year you have enough to pay the charges, you can clear them if you want).

jw2003

If you google it a fair few forums come up discussing this company, not good. How much were your fees if 30% + £149 going to them would still justify it? Personally, I wouldn't trust a company cold calling me and asking for money up front