Switched product with existing lender charged £295 - can i claim any back?

Brucie_Bonus

The product i was on had come to an end and the interest rate was going back up to the SVR so we wanted to switch to a product with a lower interest rate.

The mortgage payments would have increased by £100 a month if we hadn't.
Thinking that switching with our existing lender would be simpler/cheaper it still cost us £295 as an "Administration Fee".

I've rang Market Harborough to ask if they would consider a patial refund but they explained this only applied to "Exit Fees".
I did explain i knew the difference but considered the charge to be steep, which was putting it mildly considering i'm an existing customer.

Is there anything i can do?

toonfish

I'm afraid not - and it's probably worked out cheaper than remortgaging elsewhere

wardlaw

Your mortgage repayments will have increased by £100.00 if you had not switched

You are quibling about a small £295.00 administration fee and you will be making an initial saving of £1200 pa and you want a refund

You have been charged very little for a great saving You have been given a good deal Others are not given such a good deal, and charged anything from £500 + upwards & they don't expect refunds

Go for it

dunstonh

You asked for a service, you were told the fees and you agreed and paid them. Why do you think you can claim them back?

Are you going into Tesco to ask for money back on your groceries?

bluep

£295 is actually a low arrangement fee for a new rate - others in the same situation have been quoted fees of £499 up to £999. The fee is also usually in proportion to the discount on the rate (i.e the 999 is for a lower fixed rate) so you have to calculate which one works out better value in the long run.

Some of us have had some success at negotiating that fee down but ALWAYS before agreeing to take out the product. There's no grounds for asking for a refund of some of it as it isn't an illegal charge or an increased exit fee etc... Other people have had no luck at all in getting their fee reduced before taking out the new product - it depends on how good you are at negotiating and how much the bank want you to stay with them. After you have taken the product, paid the fee and signed the papers, you have nothing to negotiate with as you are then with them for that fixed period.