Arrangement fees

gbcasual

Has anyone ever got the lender to reduce or completely drop the arrangement fee?

If so, what do you think persuaded the lender to waive/reduce it?

Thanks

Jon

beecher2

You've no chance and why would they waive it anyway?

gbcasual

I agree that waiving it is unlikely but I am also asking if anyone has ever got it reduced.

Do people ask and get politely declined or does nobody even ask at all?

I understand why there are differing fees out there i.e. in general lower rate = higher fee and lower fee = higher rate, but some of those fees are rather big and you could question why they are so large!

herbiesjp

But you have the choice to pay the higher fees to get the lower rate, or not.

On that rationale, you could question why they are charging an interest rate for lending you the money.

Don't forget, depending on your mortgage amount, it may be more cost effective to look at higher rates with lower fees.

luckyfool

Equally there is effectively a shortage of money to be lent out just now and no incentive for lenders to negotiate. We are not in the situation of 3-5 years ago where lenders were queuing up to throw money at people, if you don't want to borrow money at X% with £Y Fee then presumably they will lend it to someone else.

_Andy_

gbcasual wrote: »

I agree that waiving it is unlikely but I am also asking if anyone has ever got it reduced.

Do people ask and get politely declined or does nobody even ask at all?

I understand why there are differing fees out there i.e. in general lower rate = higher fee and lower fee = higher rate, but some of those fees are rather big and you could question why they are so large!

They won't reduce them. Sometimes companies like Nationwide will offer no fee for existing customers on product transfers but otherwise thats it.

If you feel the fee is too big then look for another product.

opinions4u

gbcasual wrote: »

Do people ask and get politely declined or does nobody even ask at all?

People ask, get politely declined, and then the staff member moves away from the customer area of the office and laughs hysterically.

I understand why there are differing fees out there i.e. in general lower rate = higher fee and lower fee = higher rate, but some of those fees are rather big and you could question why they are so large!

You have probably answered your own question rather well.

I will, however, add a couple more:

- the supply of money is low, so it pushes the price of borrowing money up.

- the risk of lending is high, so the lender widens the lending margin (either through interest rate or product fee) to cover the risk of bad debt.