Product Fee???

swanseagirl62

When I asked about increasing my mortgage to buy a more expensive house, I was told there would be a product fee....not knowing what a product fee was I pressed the advisor for more info, turned out he decided I didn't need one which saved me £895! He wasn't very happy about my insistance on knowing what it was, when explained (briefly), I said I don't need that, he went red and agreed! ....I'm still not 100% certain of what a product fee is, but on the surface they appear to be a huge rip off!.

dwsjarcmcd

Very strange. A product fee forms part of the pricing of the product, so you get charged a lower interest rate with a higher product fee and a higher rate where there is a lower or no fee. It is not something that an Adviser can simply decide not charge because you ask what it's for. He would have had to offer you a completely different product where the interest rate is different to the original product you were discussing with him. I think you need to check your paperwork to see what you've ended up with.

David

hillcats

I would agree with dwsjarcmcd, maybe the first product you were discussing had a better rate with a medium fee, but you may now be on a worse deal with higher rates and no product fee?

You need to find out some more info here for sure....

dunstonh

I'm still not 100% certain of what a product fee is, but on the surface they appear to be a huge rip off!

If you dont know what it is, how can you say they are a rip off?

Some mortgages have higher fees but lower interest rates. For larger mortgages, they can be much better value for money than low/no fee mortgages with higher interest rates.

Like the others above, it looks like either the deal changed or a different version of the deal was used or it was a simple misread of the information.