A question for Mr lewis on Mortgage closing admin fees

Antj29

The reason i ask this of mr Lewis is i just watched him on News 24 talking about the bank charges, the statement he used was that the banks cannot charge an unreasonable amount for something that does not cost them that much.

That is when i thought of a personal hate of my own for some years now, Mortgage closing admin fees.

Firslty, I have been involved in mortgages for 10 yrs now, previously as a mortgage underwriter for a well known lender, then a branch manager for the same lender, then after that an independent mortgage Advisor. although i still do mortgage advice my main job now is as a compliance officer for a large IFA. But i have been reading on here for ages.

A bit of history first.

Many moons ago when you used to have a mortgage for life with one provider, you would finish your last payment, and then receive a letter from your lender saying well done, also do you want to come and pick your deeds up?

Then after a while lenders statrted to charge for it and called a Deeds Sealing fee, this was basically a 50 quid. which seemed reasonable to cover the cost of sending out your deeds recorded mail etc and insuring them against loss.

However in the last few years these fees have crept up, we are now looking fees as high as 300 pounds simply to close your mortgage. Therefore could these fees be deemed unfair like the bank charges. As there is no way it costs 300 to close a mortgage.

The same could also be said of the Mortgage rate conversion fees. Again lenders such as Nortghern rock charge fees such as 1000 pounds for a simple press of a computer button ( i know the behind the scenes process!!!)

So does the same principle apply Martin

kenshaz

The Halifax has a standard letter to justify the rise,but I feel that they have increased the charge unreasonably in relation to the work involved.Whilst we accept the increase and therefore allow them to continue charging .I kicked up a fuss and took it through their complaints procedure ,trouble for them and realization that the consumer is not happy ,if every-one reacted in the same manner they would have to respond,it is I believe a stealth payment.
If I was offered a wonderful competitive mortgage with a high exit admin charge ,I would probably still continue with the mortgage,it is minor when you are involved in the initial arrangement and over looked and unfair .

Antj29

Good news,

i searched on the FSA site and they are launching an investigation into mortgage charges.

See the FSA site does hold a lot of information, its just trying to bloody find it.

Any other comments are welcome on this subject

Poppycat

I a also unhappy of there closing fee. I raised this last week in a post on this forum, I am aware the fsa are looking into this

I am going to complain to the Halifax as I believe the charges should reasonable.

kenshaz

Ant j29 reminder that you require a signature if you are stating in your post that you are a broker as per broker code.