Help needed im confused ref mortgage

Stressed_Dad

Hi All

I have recently looked at all the paperwork with regards to my existing mortgage and i am confused.

The lender i am with is a sub prime lender called G-mac, i have had a mortgage with these people since 2001, since then we moved house and increased our mortgage what was termed as 'porting the loan' in dec 2003.

In August 2005 we were unable to get additional borrowing although when we contacted an IFA we managed to get another mortgage with Gmac again at a higher interest rate.

When i questioned the redemption fees with them today (as i wanted to know if we were charged the erc on the old mortgage) as was advised that the erc was waived as i 'ported the loan' which were the words of the adviser.

The thing i dont understand here is how Gmac can still charge me £495 arrangement fee if the mortgage was 'ported' ?

On one hand they have recognised me as an existing customer by waiving the erc but on the other hand they have charged me £495 as per t's and c's for a new mortgage.

I would be grateful if anyone can help me out on this one or if i should contact the FSA, is what Gmac doing lawful ?

I mentioned on a seperate thread that my fixed rate ends in May yet my redemptions do not end until August 2008, i have been told that this is very unusual and not particularly good practice.

Any advice would be gratefully recieved.

Thanks

Kevin

homer_j_3

yes it is normal for a lender to charge the arrangement fee on a new deal if it is from their current range of products as the rates you choose are only gained through the pricing of the product including the arrangement fee.

It sounds like that your fixed rates have an overhang on the tie ins. This isnt particularly good practice but its hard to say if the advice was incorrect without knowing the full story.

Stressed_Dad

thanks HomerJ.

Sounds like another expensive case of you live and you learn:o

MortgageMamma

Stressed dad

When you are due to remortgage make sure you take professional advice. there are plenty of advisers who are indpenednet and whole of market who will do it without charging you a fee. by doing this you will ensure the same thing cant happen again, and you will be protected in the event of a mis-sale and could claim compensation if you needed to.