Mortgage Review Fee?

denise43

Hi, when my fixed rate expired I wanted to have anther one and as my current lender had already posted me the new deals I decided to switch to one of those. However I was required to pay £225 for an administration/transfer fee plus a £495 arrangement fee.

The arrangement fee I can understand as the bank has to arrange for that money at that rate, but the £225 just to post a leaflet and administer a few papers I think is extremely high. Can I ask the bank for a breakdown of these fees and do these seem justified to anyone else?

Thanks for your time.

Scott

These fees tend to be a "like it or lump it" kind of affair, but the worst you can do is ask to see if they can knock anything off for you.

Mr_helpful

Its just a price of a service. it may not look fair but then is the price Starbucks charge for coffee or for that matter the price theatres charge for you interval drink (£3.80 for 275 ml bottle becks at We will rob you show) The best thing to do is see if it is economic to do and decide whether to go for it

ninanella

To Denise43

I was going to ask the same question, I transferred to a fixed rate with the same lender, Leeds and was charged £199. When I first transferred my mortgage to Leeds I was charged £299 which again appeared excessive, but I imagine there was a lot of paperwork and checks to be made etc. Once I was with them, I wondered how can they could justify £199 just to change rates? I did ask and was told this because they have to reserve the funds????
The question is not about lumping or leaving it as a previous post suggests, the question you and me are asking is is similar to the whole exit fee saga, is this fee justified and legal?

I am sure you think as I do, this is a bit like the bank overcharge fees, it seems excessive for the product. A transfer of rates. I wondered if anyone could be specific with their advice. Thanks Ninanella

dunstonh

The question is not about lumping or leaving it as a previous post suggests, the question you and me are asking is is similar to the whole exit fee saga, is this fee justified and legal?

Of course it is legal. You dont pay the windowcleaner for just the water and soap. You are paying for the service and that is the case here.

I did ask and was told this because they have to reserve the funds????

How do you think they get the money to give you that rate? They have to buy the funds on the money markets. That involves costs. Some mortgage rates are run at a loss and the charges are there to offset the loss on the interest rates.