Annoyed at mortgage arrangement fees, is it a rip off?

PosterBoy77

danjberry wrote:

maybe they should of got a mortgage broker who would of explained this to them

Perhaps you are a mortgage broker who does. However there are many who will cover that aspect as quickly as possible trying to brush it under the carpet.

PosterBoy77

toonfish wrote:

may I ask why not?

Well it is a given that nobody is working for free.

toonfish

mikael wrote:

danjberry wrote:

Well if the products were simple enough for more people to fully understand without advisors or lenders employing their own staff to explain them, it would be cheaper overall for the customers. However the current direction of the market is leading to more and more catches which are designed to catch people out. The lenders all have to compete, so once one does they all have to.

why would they not have to compete if the mortgages were "simpler"?

PosterBoy77

toonfish wrote:

a legal template like a KFI - what a great idea. I'm surprised no-one has thought of it already.

I know - but it seems that many people still do not understand what is documented there and need a mortgage advisor to tell them. You and I may well understand all the terms, but I challange you to walk down the street, knock on the doors of houses and see how many average people will understand everything mentioned.

toonfish

mikael wrote:

Well it is a given that nobody is working for free.

so if someone is providing a service they shoul dexpect to be suitably remunerated?

PosterBoy77

toonfish wrote:

mikael wrote:

why would they not have to compete if the mortgages were "simpler"?

They would not be competing in such compex ways. Many years ago you bought a mobile phone and paid x p per min for calls. Now you get a myriad of different plans with differing call charges once you use up your minutes. These are designed to get people to part with more money than they need to. Every network has small print, peak and off-peak starting at different times. Peopel in the know can get very good deals, but the average punter is paying more than he/she needs to be because of the complexity.

toonfish

mikael wrote:

I know - but it seems that many people still do not understand what is documented there and need a mortgage advisor to tell them. You and I may well understand all the terms, but I challange you to walk down the street, knock on the doors of houses and see how many average people will understand everything mentioned.

sorry but you are talking nonsense. I am an "average" person, but wouldn't have a clue how to fix my gas cooker, put a new gearbox in the car or build a garden wall - I'd go and employ someone who knows what they're doing.

There's no difference, except I'd pay them for their services and brokers give theirs for free.

RufusFrog_2

And to think I used to believe that banks and building societies could make money by lending money at, say 6% and borrowing money (our savings!) at 4.5%.

fimonkey

MarkyMark, and Andy.... I do NOT know enough about figures to know it would be a simple method of division etc (And I too found MM's initial reply quite confusing, I had to read it a few times and then I gave up). For this reason I WOULD get financial advice were I ever to take out a huge loan such as a mortgage... However...IMHO there's no need for mortgages to be so complicated, some with fee's, some without, tie in clauses, up-down-in-out-and-shake-it-all-about- style. - And yes monthly repayments ARE important, I get paid monthly, I want to know what's going out monthly, and it will affect my decision in the choice of a mortgage.

Also, despite being numerically illiterate (and something I'm not proud of) I am reasonably intelligent and would like to be able to look at products offered to me by advisors and decide for myself if they are good for me or not (in fact have actually had experience with an IFA who offered me a product was was NOT good for me once I discussed it with another finacially literate person). Nothing wrong with taking resopnsibility for your own actions and wanting to understand what's going on.... but it's darn confusing with all these add on's and extras.

KF's..... definately helpful for average-dumb-joe like me.

Thanks

PosterBoy77

toonfish wrote:

so if someone is providing a service they shoul dexpect to be suitably remunerated?

Yes - why not? However I find it distasteful how financial industry is making their products ever more complex so they can then sell further advice services to explain them.

Lets allow food manufactuers to write all the ingrediets in Latin and then they can sell us the services of a latin speaking personal shopper who can shop for you and explain what the ingrediets are.