Building Society mortgage `arrngement fees`

horace_2

>> 1jim

my quote
"So, when it comes to financial products why should the punter pay for the costs of Building Societies bringing their products to market?"
unquote

Mr Sainbury does not charge to bring his wares to market nor does Mr Waitrose. So your point is what? I missed it completely rather is it that financial institutions are at liberty to confuse the general public but not supermakets?

I look forward to your reply.

horace

1jim

Of course Mr Sainsbury and Mr Waitrose charge to bring their wares to market... the costs are just hidden in the price you pay at the till

You seem suprised that I used the analagy of supermarkets but this is because you used the analagy in your post (see post #6)

you ask why should the punter bear the cost of bringing products to market....well thats easy.... the punter always bears the cost of bringing a product to market (whatever the product) unless its a loss leader


you also had a go at Millsy1980 "temper temper temper" but is seems that you are the one not really tolerating others opinions without havong a go "so what is your point? I missed it completly".... some would argue if you missed the point when someone uses your own analagy then its no wonder you get confused with the charges/rates offered by financial institutions

horace_2

>> millsy1980

I am convinced that you are sincere in your views and I quote from your post above....
quote
`If you want a fee based product then the fee will be explained to you`.
unquote.

Would you please explain (for any product YOU choose) what the fee represents.
Simply say this is product `xyz` and the fees are because of abc

I look forward to your reply.

horace

dunstonh

do not mix up implicit charging with explicit charging. You still pay charges one way or the other.

Another way of looking at it is how much do you pay in charges on your savings account? Nothing? Actually you do. You dont see the charges though as the rate is set after profit margin and costs have been taken into account.

The arrangement fees are closer to, although not fully, explicit in charging. The example given by millsy1980 is a good one as it shows that where the fee isnt paid, the mortgage interest rate is increased.

If as I suspect they are simply a revenue generator for bigger shareholder profits is there a legal case to reclaim these charges ?

Any fee is an income generator. It doesnt mean that its all profit though. Plus what makes you think that an arrangement fee is illegal?

horace_2

1jim
qoute
"Of course Mr Sainsbury and Mr Waitrose charge to bring their wares to market... the costs are just hidden in the price you pay at the till"
unquote.

1jim
I cannot see any hidden costs there. The price you pay on Mr Sainsbury`s till or Mr Waitrose till is there for all to see unlike the Building Soicieties who deliberately confuse prices.

Do you get the drift now?

rergards

horace

1jim

I cannot see any hidden costs there. The price you pay on Mr Sainsbury`s till or Mr Waitrose till is there for all to see unlike the Building Soicieties who deliberately confuse prices.

Do you get the drift now?

rergards

horace

but the building societies have not hidden their prices, they say the charge is £500 amt with a rate of 4,5% for product a, but for product b the charge is £0 but has a rate 5 x%
IMHO thats not really very confusing, the consumer has a choice.....
I was considering remortgaging.... I had a choice of a no fee deal with rate 5.35% (with no fees at all) or the choice of paying £1000 and get a rate of 5.09ish%. For some the fee free rate is best.... for others with a larger mortgage the lower rate with the fee is best.... not really confusing, you just have to work out which is the best deal for you...... if the mortgage companies did what you wanted some consumers (if not all) would be worse off as one size does not fit all

horace_2

1jim

thank your for your reply.

Sorry mate, did you say this (muffle LOL )

but the building societies have not hidden their prices, they say the charge is £500 amt with a rate of 4,5% for product a, but for product b the charge is £0 but has a rate 5 x%
IMHO thats not really very confusing, the consumer has a choice.....
I was considering remortgaging.... I had a choice of a no fee deal with rate 5.35% (with no fees at all) or the choice of paying £1000 and get a rate of 5.09ish%. For some the fee free rate is best.... for others with a larger mortgage the lower rate with the fee is best.... not really confusing, you just have to work out which is the best deal for you...... if the mortgage companies did what you wanted some consumers (if not all) would be worse off as one size does not fit all.

Well that explains EVERTHING!!!

dunstonh

I cannot see any hidden costs there. The price you pay on Mr Sainsbury`s till or Mr Waitrose till is there for all to see unlike the Building Soicieties who deliberately confuse prices.

Do you get the drift now?

shops like sainsbury and waitrose and other retail outlets do not disclose their charges the same way. Apart from the fact you cannot compare like for like exactly, how much does Sainsburys buy that tin of beans for? How much profit do they make on it?

There are mortgages which can give you no fees and just give you an interest rate. Others can reduce the interest rate by building in initial charges. Often those charges are linked in with buying funds to meet the fixed rate that is on offer. That is the economics of the money markets.

MarkyMarkD

Horace

You are flogging a dead horse here.

There is NO legal basis for challenging an explicit, up front, agreed, fee for buying a mortgage. End of story.

As to whether up front fees are a good idea, or fair, that's for the customer to decide. As everyone else has responded, almost all lenders offer loans with and without up front fees.

If you have spare cash, choose a product with fees.

If you don't, choose a product without fees.

And if you think that it's somehow confusing to compare two mortgages, one which is £500 up front + 4.99% and one which is £0 up front and 5.19%, then you shouldn't be allowed to buy a mortgage. It's not rocket science.

david29dpo

thats it! i have had enough! sorry but i am sick to death of people moaning about these fees. if these people had there way, signing for products and THEN trying to claim them back, what do they think is going to happen? nothing?..to these stupid people who signed without reading first they probably think so. to the rest of us who think first eventually all fees will be scraped and WE will pay more interest. thanks!!