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

MortgageMamma

Can't believe this thread is still alive. Yep wig, agreed it would make life simpler for everyone but I doubt thats ever going to happen. As for calculating interest on arrangement fee's added to the loan for the life of the loan, that is simply impossible to do as none of us have crystal balls. if people are so bothered about it then they should make every effort to overpay the mortgage to neutralise the impact of it. If thats not possible then thats life, the alternative is to pay a higher rate on a fee free mortgage

danjberry

i cant believe this thread either now. blood from a stone comes to mind.

PosterBoy77

Well the thread has been dragged out by a couple of mortgage advisers more interested in denying that there is anything wrong with the way mortgages are sold than discussing the intial issue.

We have now all seen how hard many will defend their vested interests and it will no doubt now show others what kind of advice they can expect on such matters. So still a useful thread.

dunstonh

well the thread has been dragged out by a couple of posters more interested in not admitting that they cannot count.

Look, the long and short of it is that if you want a simplified product then many people will lose out. We don't complain that when you go into a shoe shop that there are so many designs and so many different sizes. One size does not fit all.

Mortgages used to be a lot easier to understand but there were fewer deals, fewer lenders and the terms of the lending were not as good as they are today. If you introduce more flexible terms then you are going to get options. Options that are going to suit some but not others. If you are not capable of understanding the options then there are people to help.

We have plumbers, electricians, solicitors, accountants, decorators and many many other professions where you can go DIY if you want. Mortgage and financial matters are no different. Some people can do those things, some cannot. If they cannot, they can either attempt it themselves and get it right or make a right pigs ear of it. However, that is their choice. Or they can use a professional to do it.

I wonder how many of these whiners have jobs/professions which involve some knowledge, experience and qualifications or perhaps they all work at Macdonalds.

MortgageMamma

Nobody ever denied we had an interest! we are businesses not charities, thats the problem with this site, it attracts to many moaners and whingers who want to ride through life for free!

Mr_helpful

MM
Good point about people overpaying to get rid of the fees however what you have affectively suggested is a flexible mortgage which contrary to the assumed views of some of the other advisers has probably the most options and some of the lowest arrangement fees amnd would be very good for a fee adverse tight !!!! coz he could pay off the mortgage earlier and save shed loads in interest. I hadnt thought of it before but its noticeable that the simplest mortgages (fixed for those who are wondering) tend to have the highest fees

PosterBoy77

MortgageMamma wrote:

Nobody ever denied we had an interest! we are businesses not charities, thats the problem with this site, it attracts to many moaners and whingers who want to ride through life for free!

To be honest I don't care who you advise, and you will never be advising me. I have only been posting to suggest that many options with mortgages are structured to be more complicated than they need to be to confuse customers. That is all. Nothing else. I don't need to be told I'm moaning, what job I may or may not do or anything else.

The current situation makes extra work for you, so it is no surprise that you like it that way, no matter whether it is ultimately good or bad for the customer. That is the bottom line.

PosterBoy77

dunstonh wrote:

well the thread has been dragged out by a couple of posters more interested in not admitting that they cannot count.

Look, the long and short of it is that if you want a simplified product then many people will lose out. We don't complain that when you go into a shoe shop that there are so many designs and so many different sizes. One size does not fit all.

Mortgages used to be a lot easier to understand but there were fewer deals, fewer lenders and the terms of the lending were not as good as they are today. If you introduce more flexible terms then you are going to get options. Options that are going to suit some but not others. If you are not capable of understanding the options then there are people to help.

We have plumbers, electricians, solicitors, accountants, decorators and many many other professions where you can go DIY if you want. Mortgage and financial matters are no different. Some people can do those things, some cannot. If they cannot, they can either attempt it themselves and get it right or make a right pigs ear of it. However, that is their choice. Or they can use a professional to do it.

I wonder how many of these whiners have jobs/professions which involve some knowledge, experience and qualifications or perhaps they all work at Macdonalds.

Yep, too right, several mortgage advisers fail to grasp the concepts of compound interest on fees and various other costs which are not quantified.

Nobody cares about the number of shoes in a shoe shop as you pay the price displayed and that is the end of the matter. You do not have booking fees, arrangement fees, valuation fees, tie-in periods, redemption fees, exit fees and many others. If we did have all these with shoes, it would have been stopped by now.

"Free mortgage advisers" costs are bourne by everyone who takes out a mortgage one way or another. The fact that ever more are needed is making mortgages more expensive.

The industry is ultimately taking more money than ever from the consumer which means that many fees are a rip-off no matter what anyone says.

It is a fact that many mortgage advisers are getting a free ride. If fees were regulated, and simple to understand, it may make it easier for many customers to make their decision without an adviser, this would reduce the number that would be able to make a living, saving commission payments and reducing the overheads for lenders. Lenders like it the way it is right now though, as those who can most attract customers by offering a good headline rates and keeping fees as quiet as possible will get more business.

Conrad

Fees too high - yes I think so but then eveyone's at it.

Someone I know who is always complaining about the cost of everything in the next breath bragged how big a pay rise they cleverly screwed thier boss into the other day!

This same numptie appears not to recognise the link between his extortionate 'hard fought' wage award and the cost of living in Britain today! Its all a big interconnected merry go round.

Dont forget the Banks are owned by OUR PENSION SCHEMES - no doubt you will all complain if those schemes under - perform!!!!!! So which way do you want it?

PosterBoy77

Conrad wrote:

Fees too high - yes I think so but then eveyone's at it.

Someone I know who is always complaining about the cost of everything in the next breath bragged how big a pay rise they cleverly screwed thier boss into the other day!

This same numptie appears not to recognise the link between his extortionate 'hard fought' wage award and the cost of living in Britain today! Its all a big interconnected merry go round.

Dont forget the Banks are owned by OUR PENSION SCHEMES - no doubt you will all complain if those schemes under - perform!!!!!! So which way do you want it?

I'm afraid I'm too young to benefit from the pension funds. People of my age will be expected to bail out those people whose pension funds have folded and be expected to magically live of thin air ourselves, as we will be expected to spend every last penny on sky high housing in the UK! You are quite right about the merry-go-round and high cost of living. The answer for many young English people will be to emigrate and leave the people who have made the country the place it is today to sort it out.