Mortgage excessive fees (bank charges)

Poppycat

Hi guys,

I applied to take a mortgage out on 14th November 2006 via a broker. I got the keyfacts which stated charges etc.

Last Monday I was chasing up the mortgage offer to see when it will arrive, having committed monies buildings insurance (via broker), life cover (via broker), valuation, searches.

I was informed subsequently that my mortgage admin fee had increased on 17th November from £99 to £599. This was some weeks after I had applied and the fees had gone up in 3 days since I applied, I believe they should have notified me early.

I also note on the mortgage offer that an additional charge of £25 on-off charge for insurance

"You have chosen to arrange your own building insurance. There is a one-off charge of £25 payable to GE money for accepting this cover. It is payable to the completion if the loan. You have asked this fee to be added to the loan"

In the keyfacts I got on 14th November it states

"Insurance you must take out out asa condition of this mortgage but you do not have to take out through xxxxxx mortgage services.

Buildings
If building insurance is not taken out through xxxx mortgage services thena charge of £25 will be payable once completion"

I took out insurance via there broker it even has the xxxx mortgage services on the insurance quote.

Now I will be challenging these charges as I believe that the charge of £599 instead of £99, that I should have been notified at the time (3 days for offer to run) or soon afterwards instead of leaving it 3 weeks.

The insurance charge is also I believe wrong as I got the insurance from the mortgage centre via its broker.

I spoke to the lender who refuse to talk about it, I spoke to the xxxx mortgage centre who again said they wont do anything about the £599, and that the insurance extra I must speak to the broker, fair enough he isn't in today.

When I was told last Monday of the increase that was the first I heard, I mentioned to the broker the same day, he also wasnt aware. He said "dont worry we will get the mortgage and worry about the charges later", his words.

The following day his tone changed he basically said theres nothing he can do.

Now whilst I will complain about this, I also am worried because in getting this mortgage we will just get buy. Any increase will increase my monthly payments, but an extra £500 will be more like £1k on the life of the mortgage.

IF I do manage to get the £500 off and £25 off can the lender take this off the mortgage and thus it will ultimately reduce my monthly payments, granted not by much.

I spoke to the FSA last week and they verbally agreed that I shouldn't be charged the £599 fee. I am worried about complaining at this time because we haven't moved yet (new year we hope) and we really need to move because of my daughters health. I did mention this to fsa regarding already committed to this as I wondered if it could weaken my case because hopefully contracts will be exchanged this week, and that if I make a stink now, I could loose the sale of our house and our house we are buying because of the delay in finding a new mortgage.