Is high switching fee justified when staying with same provider?

Duracell118

Hi, I changed mortgage product but stayed with the same provider when my fixed rate and tie in ended. I was charged £395 product fee (fair enough) and £250 switching fee, total £645.

If I went elsewhere I would've been charged a £295 exit fee on top of the product fee of around £400 from the new provider. So, it would've cost £695 to change provider. As the mortgage products on offer were the same I stayed with my origional provider.

The £250 switching fee seems excessive, especially as there would be no admistrative costs associated with title deed transfers etc - which, I am lead to believe is a significant reason for exit fees. A phone call to my provider got me nowhere so I sent a complaint letter 7 days ago explaining my concerns and asking for a refund. I have not received a response yet.

Do I have grounds for complaint or should I expect a negative reply from my provider?

Any opinions would be greatly appreciated.

LisaT186

Another A&L case?

The fees do seem excessive, apparently their pricing policy is that you have the same deal as a new customer and simply pay an admin fee of £250. Trouble is if you pick a deal that has other fees as well such as the £395.

As the fees charged are applicable to their pricing policy and you are accepting them to get a rate.

If you were to move away you could challenge the exit fee as others have done on here successfully. It is more than likely that this fee has risen a lot since you took the mortgage out, ie they have changed the terms and conditions.



Edited as just realised I've replied to the same person twice!!!!

WISHIWASRICH_2

I agree that these fees seem excessive. I'm not aware that there is any way you can get ur money back. Wish there was.:rolleyes: