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

PosterBoy77

toonfish wrote:

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.

No, but I'm sure if you walked into a Kitchen showroom you would not be best pleased if the cooker features were not explained and you were told that you would have to pay a consultant via an arrangement fee to find out what the features were, and how others compared.

danjberry

mikael wrote:

No, but I'm sure if you walked into a Kitchen showroom you would not be best pleased if the cooker features were not explained and you were told that you would have to pay a consultant via an arrangement fee to find out what the features were, and how others compared.

then get a fees free broker. like i have said the arrangement fee would still stand regardless if you went direct or via a broker. so your reply about paying an oven consultant dont hold water.

danjberry

RufusFrog wrote:

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%.

not usually enough money held in peoples savings accounts im afraid. dont forget premises, staff, IT etc will take a huge chunk of that "profit" as well

HelpWhereIcan

Wig wrote:

The problem is simple and if you had read the thread and understood, it should be be clear enough by now.

The lenders should be forced to provide a mortgage which fits into a legal template so that different lenders offers can be much more easily compared.

simple really isn't it.

It's called a CAT standard mortgage - they exist - not massively competitive, but they exist.

Without all the 'complication' that has happended as the mortgage industry has evolved over the years we would not have buy to let, let to buy, offset mortgages, income stretches, 100% + mortgages, Tracker rates etc etc

HelpWhereIcan

mikael wrote:

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.

Is a supermarket open and transparent with you about their charging structure? How much do they hide by using Bogof's or 2 for 3s for example.

this is not just a charge that can be levelled at Financial Services, just that this subject is one of the most emotive... hence the reason why it is one of the most heavily regulated of all.

MarkyMarkD

I think your supermarket comparison is very good, HWIC.

The point is that, whilst mortgages are relatively complicated, it is possible to get a "whole of market" broker to compare them for you and give you advice as to what's the best value.

You can't do the same with groceries - you have to guess, for yourself, which one will give you the best value on that week's basket of goods.

And yes, I know there's a website which will do it for you for online grocery shopping, but that's in its infancy and still not necessarily going to get you the best value as it doesn't cover all shops and the best value (exactly like with financial services) is NOT to get everything in the same shop.

Wig

toonfish wrote:

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

You know I thought about adding the words "(obviously much more simplified than the "anything goes" nature of todays KFIs" after.... which fits into a legal template in my post above. But I decided you would have the intelligence to know what I have been saying throughout this thread. Unfortunately you have shown you are unable to grasp what I have been saying. I'm sorry for you, that you can't understand English, and grasp a simple concept.

Wig

HelpWhereIcan wrote:

It's called a CAT standard mortgage - they exist - not massively competitive, but they exist.

Without all the 'complication' that has happended as the mortgage industry has evolved over the years we would not have buy to let, let to buy, offset mortgages, income stretches, 100% + mortgages, Tracker rates etc etc

Thank you for being able to understand what I have been saying in this thread. A lot more than can be said of some of your fellow contributors. I was thinking of the CAT standard for ISAs to use as an illustration, so that these people who don't understand English might be able to better understand me.

Thank you for bringing this to my attention, I didn't know there was a CAT std mortgage. Now all that is req'd is for all mortgages to have to comply with the CAT criteria - no exceptions (for the directly sold market).

toonfish

Wig wrote:

You know I thought about adding the words "(obviously much more simplified than the "anything goes" nature of todays KFIs" after.... which fits into a legal template in my post above. But I decided you would have the intelligence to know what I have been saying throughout this thread. Unfortunately you have shown you are unable to grasp what I have been saying. I'm sorry for you, that you can't understand English, and grasp a simple concept.

I see sorry. Perhaps something like the one page summary of costs and charges that we used to give out before the introduction of KFI's?

And as for the "anything goes" nature of KFI's it's evident that I am not the one here who does not know what they are talking about. All you are doing is attempting to be a smart !!!! as far as I can see.

If you aim everything at the folk that can understand it least you will end up with a mortgage system that is restricted and where is the benefit in that. There are any number of advisers prepared to help people out for either a fee or not - the clients choice, always assuming that they are intelligent enough to make one for themselves.

toonfish

Wig wrote:

Thank you for being able to understand what I have been saying in this thread. A lot more than can be said of some of your fellow contributors. I was thinking of the CAT standard for ISAs to use as an illustration, so that these people who don't understand English might be able to better understand me.

Thank you for bringing this to my attention, I didn't know there was a CAT std mortgage. Now all that is req'd is for all mortgages to have to comply with the CAT criteria - no exceptions (for the directly sold market).

so everyone gets a base rate tracker - great!