Closing Admin Fee

AMO

Hi all,

I am about to move my mortgage.

There is an arrangement fee to do so, but there is also a closing admin fee from my old mortgage provider.

Should I be paying for the closing admin fee. It's £225 - is this high?

Thanx

AMO

Cazza

It's about average I'm afraid! They range between about £90 and £295 and IMHO they are simply a way of making money out of you!

dunstonh

Cazza wrote:

It's about average I'm afraid! They range between about £90 and £295 and IMHO they are simply a way of making money out of you!

The economics of it is that the mortgage rate doesnt give the profit that it once did and fees like this account for a lot of the final profit (in some cases all or not even that).

So, whilst lending rates are cheap compared to base rate, admin fees have crept up to compensate.

Also, it helps discourage you from leaving that lender to go to another. This is why all good mortgage advisers check the deals from your existing lender before making recommendations as it can be cheaper to stick where you are but on a revised deal.

Sooler

Regulator cracks down on mortgage exit fees
http://money.guardian.co.uk/property/mortgages/story/0,,1999441,00.html

silvercar

complain, they may well refund at least some of it, my lender refunded it all!

wymondham

silvercar, they refunded the lot? - that sounds good as we are about go get clobbered £225 from Abbey simply for not taking up their awful deals and looking elsewhere.... hmmm

neilcaldwell

Sooler wrote:

Regulator cracks down on mortgage exit fees
http://money.guardian.co.uk/property/mortgages/story/0,,1999441,00.html

Sooler thanks for this - I caught something today on Working Lunch about this very subject and I for one intend to appeal about my recent charge to pay off my mortgage early.

UK007BullDog

Here:
http://www.fsa.gov.uk/pages/Library/Communication/PR/2007/012.shtml

So complain and send them the link.

Good luck and please do let us know if you got a refund and how much.

horace_2

`The economics of it is that the mortgage rate doesnt give the profit that it once did and fees like this account for a lot of the final profit (in some cases all or not even that)`.



I don`t believe that for one moment.
Banks and Building Societies do rather well for their shareholders and members.

Redemption fees accounting for a lot of the final profit... don`t make me laugh.

horace.

silvercar

wymondham wrote:

silvercar, they refunded the lot? - that sounds good as we are about go get clobbered £225 from Abbey simply for not taking up their awful deals and looking elsewhere.... hmmm

We were redeeming one mortgage and taking out a larger mortgage with them. The original mortgage was portable but they included the charge in the redemption statement. Three weeks after we moved they sent us a cheque for the full amount. We hadn't written to complain at that point, so I'm guessing my solicitor had done so.

dunstonh

horace, you dont have to believe it but its true.

Margins are tight on lending and some are not making any profit in an attempt to buy market share. They aim to profit on the cross selling of products