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

danjberry

mikael wrote:

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.

in your previous post didnt you state "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 dont think your above post shows you in this light as you seem to moan about everything once again. moaning that brokers push the interest fees up -WRONG!!!!! in fact they keep them down due to reason previously stated, overheads for branch staff are much higher then a commission fee to a broker. moaning about interest that is added on to fees PAY THE FEE UP FRONT OR GET A FEES FREE!!!! moaning about rip off fees EVERYTHING IS A RIP OFF IN BRITAIN!!!!!! you dont have to pay them shop around for one without fees then you get that simple product you want.

so where dont you understand this or shall i carry on squeezing this stone

regularsaver1

MarkyMarkD wrote:

An example of the sort of thing that people complain about is the recent Halifax product, 4.99% fixed for one year followed by 6.49% fixed for four years with a 5 year tie and a £1,999 fee.

.

do you mean 1.99% rather than 4.99%?

regularsaver1

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!

so do banks

PosterBoy77

danjberry wrote:

in your previous post didnt you state "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 dont think your above post shows you in this light as you seem to moan about everything once again. moaning that brokers push the interest fees up -WRONG!!!!! in fact they keep them down due to reason previously stated, overheads for branch staff are much higher then a commission fee to a broker. moaning about interest that is added on to fees PAY THE FEE UP FRONT OR GET A FEES FREE!!!! moaning about rip off fees EVERYTHING IS A RIP OFF IN BRITAIN!!!!!! you dont have to pay them shop around for one without fees then you get that simple product you want.

so where dont you understand this or shall i carry on squeezing this stone

I don't need a mortgage - nor do I need your mortgage advice. However it is funny to see people like you get wound up defending every aspect the the mortgage business though! I find it surprising how people with such an attitude can fully listen to customers - but there you go - you learn something everyday!

regularsaver1

if you don't like lenders or banks why not keep money under the matress and save up

did danjberry say anything about his advice - no

do you moasn about everything - like when your in a shop, having a meal ect

Mr_helpful

Rather pathetic in fighting does this thread no good.

The original question was about fees and the majority of advisers have developed ways of passing these off to customers in order to protect their status
The FSA has decided that single premium Payment protection is wrong because client pays for it long after it has expired
Also adding unsecured debt to a mortgage is usually seen as bad because it prolongs the length of the debt.
Can any other adviser tell me that adding large fees eg 2.5% to a loan is any different?
I am sure the FSA will wake up but probably when its too late. These fees should be stopped now and etical advisers doing a lot more to advise clients the full implications of adding them to their loan

millsy1980

Is it any different, probably not, but many people out there still debt consolidate, I would hazard a guess that as an adviser even you have done it for a customer? It is about choice and as long as they are aware of the pitfalls then if they do it fine if they don't then fine again.

I actually think another big point is that fees are generally non refundable. Therefore while encouraging clients to pay them up front is the right thing to do from a cost point of view, should the application not proceed a lot of money is lost. Just another thought.

regularsaver1

What would you say if the borrower pays the fee upfront? rather than spread over mortgage term

danjberry

mikael wrote:

I don't need a mortgage - nor do I need your mortgage advice. However it is funny to see people like you get wound up defending every aspect the the mortgage business though! I find it surprising how people with such an attitude can fully listen to customers - but there you go - you learn something everyday!

i think some customers attitude to a business making profit or moaning about so much choice suprising when there are plenty of other options for you out there that are already fees free, or refusing to accept the valuable works brokers do and are actully cheaper for lenders to use

and im not an advisor

shaymenRup

Saw a deal today through a lender charging 1.5% of mortgage. Thats like a brokers fee. I usually search for my own deal, got to say I'm now worrying that these fees are going to make my next remortgage very expensive.

My last deal was fee free and a market leading variable rate what are the chances of that in 12 months time?