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

danjberry

Wig wrote:

I am also looking for a mortgage at the moment. And I agree the fees are rediculous and should be banned.

why should fees be banned? as has been said if you dont want to pay them shop around, you have found the ing mortgage so go with them. whilst others may not fit ings criteria or wish to go with nationwide due to maybe a more impressive service, mutual society, already bank with them etc so the option is there for anyone to either shop around or pay them depending on what is best for the individual person

Wig

They should be banned because they are clearly abusing thier position. If they had to justify to a court that the fees are no more than what it costs to them as service providers they could not do it.

MortgageMamma

Wig wrote:

They should be banned because they are clearly abusing thier position. If they had to justify to a court that the fees are no more than what it costs to them as service providers they could not do it.

Would you take McDonalds to court for charging you 50% more than they needed to cover their costs on your BigMac? How about designer clothing? Ridiculously priced. Lets take them to court and make them prove it cost them £200 to make a pair of D&G jeans. You are a consumer, you have two choices. Take it or leave it. YOUR CHOICE. This country is fast becoming a nation of whining spoilt brats and thats just consumers over 18.

danjberry

Wig wrote:

They should be banned because they are clearly abusing thier position. If they had to justify to a court that the fees are no more than what it costs to them as service providers they could not do it.

they wont have to justify them in court because these fees are part of a product that you want, and not meant to be a non-profit fee.

Wig

danjberry wrote:

they wont have to justify them in court because these fees are part of a product that you want, and not meant to be a non-profit fee.

The point is that if the fee cannot be justified it is immoral and should be banned.

regularsaver1

no because you have an OPTION whether to go for that product or not

people seem to want the best rate with no catches

danjberry

Wig wrote:

The point is that if the fee cannot be justified it is immoral and should be banned.

sorry but the point is they are not immoral, the fee is there for the bank to make a profit, no justification needed. why are being annoyed that banks make profits? people are quick to shout about how bank are screwing them over these days when they are just running an efficient company. you only have to watch dragons den to hear people come in making a 100% mark up on their product, only to have the wholesaler to put a 100% mark up on what they paid for it. that is all banks are doing

companies = profit

fimonkey

My personal bug bear with fees is that it makes it so complicated for ppl who struggle with numbers (myself for one). I would like one figure, and that is how much I repay each month, without having to calculate whether it's best to pay a bigger fee and have lower interest rates but then have to pay a huge fee once again if I want to switch at the end of a certain period, yadda yadda yadda.

In my experience, simple is always better, I would welcome a move to make all mortgages SIMPLE! (As is the case if i want a standard unsecured loan, I ask for an amount to borrow, I'm given an APR and I say yes or no), .. no fees at the beginning, no fees at the end. If it means higher APR then so be it, but please banks and lenders, .... simple and upfront!!! (not hiding extra fees etc behind adverts for the best rates ever).

danjberry

i think that is a very sensible post fimonkey, i can understand how it does get a bit confusing. I have got a bit annoyed at some posts on these forum with all this "want something for nothing posts" and recently kind of blew my top on the credit card forum, mainly because i work in this industry i get some very arrogant customers that sound just like some people on here. but your post is very sensible and would make it easier for people to decide on their product but at the same time if you visited a financial advisor they would be a great help and tell you the total amount you will be paying etc

DoshSaver

Originally Posted by DoshSaver
(note: the more negative elements will point out it has not upped it to what ING say is their option of max 0.9% above base rate yet (after 1st of following month after bank England rise) but even if they did counting in some of the these other companies advertised fees i.e. £700 and above in some cases much more over as little as 2 years PLUS potentially £295 redemption fees, INGS product is still exceptionally good, and it’s stress free!

Wig wrote:

What do you mean by this? - Oh hang on I think I just understood, they have not yet upped their rate after the recent BOE rate rise. Well they are under no obligation to do so, but it is useful information to keep in mind. (i.e. they might soon up their rates, and they are artificially low at the moment)

Thank you

Yes that is what I meant they must be artificially low; however, if they do up their rates, as they are entitled and as they make clear in the plain/clear advertised product information, it would mean the rate would be 6.15APR (guaranteed max of 0.9% over bank base rate), with absolutely no catches, hidden or otherwise!

Now that is fair and cost effective because there are no extortionate fees for joining, leaving or intermediaries with INCLUSIVE benefits i.e. overpaying, holidays etc that many customers want.

However, if they did try any underhand or otherwise unpleasant tactics as there are no ties, it cost nothing to leave, which obviously is both an added incentive to ING to maintain a competitive attitude and a relief to the customer to know he/she is/are not chained to a company or product!

Now, I do understand to some it may be essential to have complex options available because for what ever reason their financial affairs are not strait forward but to the majority it is effectively a strait forward loan that does not require the stress which now seems to be engineered to accompany the mortgage/remortage process.

So yes, the choice should be there but and it is a big but, the strait forward clear cut fair standard COMPETITIVE variable rate with flexibility and no fees option needs to be more widely available and to my knowledge ING Direct seem to be the only company taking this root!