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

PosterBoy77

regularsaver1 wrote:

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

What has that got to do with the original subject of this post?!

regularsaver1

Because you seem to moan at everything

People are casting their opinion, but you are putting those opinions down

many of your posts go off subject, so why not

Mr_helpful

I have nothing against paying fees up front but say on northern rocks cheapo 2 yr fix how many customers write out a cheque for say £5000 on a £200K mortgage in addition to paying an extortionate survey fee and solicitors plus if its a purchase the stamp duty as well. Obviously not many.

regularsaver1

do you only recommend deals without fees then?

PosterBoy77

shaymenRup wrote:

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?

Probably not much! The way the market is going large fees will become the norm.

https://www.moneynet.co.uk is very useful for doing your own research. You can narrow down lenders quite easily. In the past when I needed a mortgage I contacted the smaller lenders if they had deals that were close to potentially slightly better ones from bigger lenders. A number will negotiate on their fees or waive valuation and/or higher lending fees. This can make their deals better than initially more attractive deals elsewhere.

PosterBoy77

regularsaver1 wrote:

Because you seem to moan at everything

People are casting their opinion, but you are putting those opinions down

many of your posts go off subject, so why not

You will see I have no problems with balanced opinions. Trying to ram the message that everything is perfect down the throats of anyone who disagrees is not casting an opinion.

Mr_helpful

Reg Saver

I spend a lot of time discussung fees with clients and give advice on the true impact of these fees and go a lot further than discussing just what is in the KFI.. They do make the job very difficult if not impossible as when comparing schemes you are not comparing like for like. There have been occasions when one has had no real option other than to go for a high fee scheme but I do document that for compliance
One thing in my favour I have never compounded the situation by charging a broker fee.
I do believe that if lenders are not careful there may be compensation claims a bit like the banks are suffering over their charges at present. I also think the FSA will have to step in as there are deals now costing over 2.5% which is madness.

Mr_helpful

I have noticed on this thread rather a lot of goes against members who are complaining about the fees calling them whingers and whiners.
Is not the title of this site moneySAVINGexpert. We are meant to be saving people money not advising them to pay extortionate fees.
I suspect that those supporting the fees have their own hidden adgenda ie that if they support the high arrangement fees it softens up the justification of them charging their own fees in addition to the proc fee they receive.

Rafter

All this debate is driven by best buy tables, the internet and the way that people now shop around and move mortgages regularly.

In many ways this is a good think because it means that loyal customers aren't overpaying.

As many have said it is not a situation that just relates to mortgages.

You pay too little for a new car believe it or not. Despite the glossy garages, they all lose money on new car sales but make it up on used cars, servicing body repairs and parts. To buy the individual parts for a car would cost over twice that of the car itself!

Back to mortgage fees though, I think the current trend to charge variable fees and huge early settlement fees has gone too far. I think extended tie ins are also wrong and that people are lulled into a false sense of security by low starting payments from loans such as the new halifax one.

Not sure how you stop the trend though. Unless the FSA introduced some sort of rule that any fees about say 1% of the advance have to be included in the interest rate for best buy tables and marketing purposes - that way the huge fee mortgages would drop off best buy tables but might still be there and still the best deal for some customers.

Otherwise go in with your eyes open. Recognise that if you close your mortgage deal early it will cost you £5000+ in fees potentially and maybe it is worth paying a bit more each month for the flexibilty.

Don't like the ING account either. They cannot possibly sustain a rate of 5.19% when base rates are 5.25% and they are offering 6% to ISA customers. Like other ING products this will get less and less competitive over time, they are not a charity after all but a commercial bank with shareholders.

R.

Rick62

Mr_helpful wrote:

I have noticed on this thread rather a lot of goes against members who are complaining about the fees calling them whingers and whiners.
Is not the title of this site moneySAVINGexpert. We are meant to be saving people money not advising them to pay extortionate fees.
I suspect that those supporting the fees have their own hidden adgenda ie that if they support the high arrangement fees it softens up the justification of them charging their own fees in addition to the proc fee they receive.

Why are you slandering the other brokers on this site 'Me Helpfull'? Most brokers are pointing out the advantage of choice in the marketplace, which includes products with low rates but high fees.

I actually like these products because many of my clients have large mortgages on which the fee is worth paying to secure the very good rate, often substantially below market swap rates.

BTW, most brokers on this site, including myself, work on a fees free basis.