Mortagage Arrangment Fees!

Jammy1234_2

Hi,

Excessive bank charges and claiming them back is getting a lot of publicity at the moment, but I was wondering if anyone had ever tried to claim back fees like mortgage arrangement fees.

I've just taken out a mortgage, and while my arrangment fees weren't too high (£299), some of the mortages I looked at were as high as £2000.

I arranged a mortage within an hour. How can the banks charge so much - what exactly do they have to arrange that justifies these excessive charges. They make enough out of interest on the mortgage.

Would be interested to know if anyone has looked into this area.

Thanks

Doozergirl

The thing about bank charges is that banks are not allowed to 'penalise' you, they should only charge what is reasonable.

A mortgage arrangement fee is a service they provide you with, which you agree to and for which they can charge what they wish. It's up to the consumer if they want to pay it; they can do what you did and simply vote with their feet!

Jammy1234_2

Thanks - I guess if you look at it that way - in that you are paying for a service and you know the cost for that service then it's up to you as individuals.

Still think its a rip off.

clutton_2

mortgage products come in a variety of types :- lower interest rates and lower Early Repayment Charges = high initial arrangement fees; whereas higher interest rates and higher ERC usually = low arrangement fees. It all depends on how long you want to buy for, and how many years ERCs you want to stomach.