admin and setting-up fee query....

tractorboy

Can anyone help? ..... the six-month 'offer-of-advance' period on my current mortgage is coming to an end. I have been warned by the mortgage company that we'll have to pay a new set-up fee (£349) and admin fee (£100) to arrange a new mortgage. Although this will save us money (because the fixed rate we took out 6 months ago is now lower), I was wondering whether we could ask them to forego the charges since they'll be losing out on our custom if we just walk away and arrange a new mortgage with another company. Does anyone have any experience of this? Cheers.

MarkyMarkD

They'll probably make more money out of the £499 they get for nothing if you walk away than out of the rest of your mortgage over its term.

So I don't see any reason that they'll waive these fees.

Mortgage offers have a limited life for a reason. If you go beyond six months, they'll have to re-underwrite your loan and it's almost as much effort for them as if you applied again. For example, your credit history could have gone completely to pox over that period; you could have lost your job; the house you want to buy could have fallen down a mineshaft ...