Arrangement Fees charged by lenders

andyb2002

How can the various lenders justify arrangement fees of up to 2000 pounds to set up an exsiting mortgage onto a tracker or similar type of mortgage.

My son has a 2 year fixed rate mortgage that has run it's two years and now he is looking for something similar but looking around he sees all the various offers are for 2 to 3 year deals with fixed rates or trackers, savings are between 30 to 90 pounds per month but with fees of anything up to 2000 pounds where are the savings???:mad::mad:

How can these fees be legal??

ziof3ster

andyb2002 wrote: »

How can the various lenders justify arrangement fees of up to 2000 pounds to set up an exsiting mortgage onto a tracker or similar type of mortgage.

My son has a 2 year fixed rate mortgage that has run it's two years and now he is looking for something similar but looking around he sees all the various offers are for 2 to 3 year deals with fixed rates or trackers, savings are between 30 to 90 pounds per month but with fees of anything up to 2000 pounds where are the savings???:mad::mad:

How can these fees be legal??

Dont know if is legal, but there are many lenders that offer a range of product on the same LTV.

One has got a very low upfront costs and one big fees and lower rates.

What I've done when I've calculate my first mortgage was work out home much it will be the difference on monthly repayment.

If is few tenner, often is better go for the low fees ones (sometimes with free valuation and cashback), that the one with the best rates.

Ciao!
Gio

opinions4u

andyb2002 wrote: »

How can the various lenders justify arrangement fees of up to 2000 pounds to set up an exsiting mortgage onto a tracker or similar type of mortgage.

They tend to be product fees, not arangement fees.

As a general rule, low fee = higher rate; low rate = higher fee.

It's legal. If you don't like it, take your business elsewhere or stay on the go to rate that you signed up for.

_Andy_

andyb2002 wrote: »

How can the various lenders justify arrangement fees of up to 2000 pounds to set up an exsiting mortgage onto a tracker or similar type of mortgage.

My son has a 2 year fixed rate mortgage that has run it's two years and now he is looking for something similar but looking around he sees all the various offers are for 2 to 3 year deals with fixed rates or trackers, savings are between 30 to 90 pounds per month but with fees of anything up to 2000 pounds where are the savings???:mad::mad:

How can these fees be legal??

They are perfectly legal.
I assume then you'd be happy with much higher interest rates and no fees?

dunstonh

How can the various lenders justify arrangement fees of up to 2000 pounds to set up an exsiting mortgage onto a tracker or similar type of mortgage.

Mortgages with higher product fees and lower rates are targeting the larger borrowers who are better off with higher fees rather than low fees/higher rate.

How can these fees be legal??

How can they not be legal?

They are retail products and they give their price. You dont complain that a £5000 TV is illegally priced so why should mortgages? If you dont like the price then dont buy it. However, just because it doesnt suit you (or your son in this case) doesnt mean it doesnt suit others.

_Andy_

Obviously the OP feels that any product anyone sells should not be allowed to have profit made on it and sold at cost price