Buy-to-Let Mortgage Arrangement Fees

kingstreet

My objection to Halifax policy on this isn't around the rate, or the fee. It's the fact that you have to commit to a product with a three year ERP.

Mitigating the increased risk of non-owner occupation via the medium of increased payments is perfectly acceptable, but offering only options with a three year tie-in gives me a bit of an issue with TCF.

Outcome 6: Consumers do not face unreasonable post-sale barriers imposed by firms to change product, switch provider, submit a claim or make a complaint.

handytips

I would imagine your Ltv is under 60%. There are plenty of products out there where you would be able to change to without any arrangement fees and they would also pay for the valuation and sols. Have a look at the Principality BTL range.

Thrugelmir

holly_hobby wrote: »

What does strike me, is that Halifax are extremely lax in the management of their CTL book.

HBOS was sales driven for a number of years. Quantity over quality. So one would imagine that its taking Lloyds a while to impose their risk profile on the mortgage book of HBOS.

SouthCoast

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Is it connected to this?

Quote:
On 10 September 2011, Lloyds Banking Group are implementing a major part of their integration programme.
Over next weekend all Halifax and Bank of Scotland (HBOS) current accounts and saving accounts are being migrated on to Lloyds TSB (LTSB) systems. New business opened in branch after this date will be opened on the LTSB system.
All HBOS current accounts already in Collections or Recoveries will move over to the LTSB system on this date.
What does this mean for you as money advisers or debt management companies?
You will notice two key changes:
�� Recoveries Customers - All current accounts currently with Blair Oliver & Scott will move over to be managed by BLS after 10 September
�� Collections Customers - All current accounts with Albion Collections will move to MHA

Thrugelmir

SouthCoast wrote: »

Is it connected to this?

After the merger of HBOS. Lloyds subsequently discovered that 28% of HBOS's mortgage book was outside their risk profile, i.e. far higher risk.

Hence the differential in SVR's, closure of BOS to new lending etc. Takes time to permanently repair the holes in a leaking ship.

OooSoo

Thanks for everyone who responded to my thread regarding these damn arrangement fees. I found all the comments very very useful, and as I thought will no doubt have to cough up!

However, like I said I have no issue with having to pay market rate fees for products etc, I understand totally financial institutions are not a charity - but it does make you think how much of the fees are to cover costs etc , or just money for old rope!!!!!!!!

I know there are people out there with far worse deals than me. I'm just glad I bought my house when I did - I feel really sorry for first time buyers and new buy-to-letters.

Cheers :T