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Feesaver - but charged a fee!

Just taken out a Feesaver mortgage with Alliance and Leicester, but have been charged a £250 fee!

Am I missing something? Does Feesaver not imply/suggest there is no fee?
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Comments

  • KTF
    KTF Posts: 4,850 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    What does it say the fee is for? Are you sure it isnt from your previous lender in the form of an exit fee?
  • payless
    payless Posts: 6,957 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Feesaver is the name they give to products without an arrangement fee ( and sometime other benefits) although they do allow existing borrowers to take these rates ( loyalty / not moving ) and all their product range appears to be +£250 * ADMIN) for these cases
    ( so on normal range if arr fee is £500, the loyalty fee is £750)

    maybe poor name in this case ... but you did "save the arrangement fee" just paid an admin fee.

    Mind you could have looked elsewhere and paid (upto ) £295 exit fee
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • longbaygirl
    longbaygirl Posts: 209 Forumite
    So can they get away with that - a 'Feesaver' that charges an admin fee, but not an arrangement fee?

    Sounds like a bit of a con to me...............
  • Leon_W
    Leon_W Posts: 1,813 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    In all fairness it does say "Feesaver" ,which you have done.

    If it had said Fees Free I would have agreed with you.
  • payless
    payless Posts: 6,957 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    So can they get away with that - a 'Feesaver' that charges an admin fee, but not an arrangement fee?

    Sounds like a bit of a con to me...............

    as I said not great choice of name , but it's fairly clear.
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • Leon_W
    Leon_W Posts: 1,813 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    To be honest payless I don't think the name is misleading at all.

    If I were to shop in say Costsaver supermarket I don't think that I would be given the impression that I could go and fill my trolley and pay nothing at the checkout.

    However, if I entered Costnothing supermarket I would quite rightly feel agrieved that I had been mislead when asked to pay for my shopping.

    Apologies to all as I am feeling extra superduper pedantic this afternoon !!

    Leon
  • payless
    payless Posts: 6,957 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Did say mis-leading, just maybe not greatest choice of name
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • homer_j_3
    homer_j_3 Posts: 3,266 Forumite
    I thought the A&L fee saver products charged for the survey on application but refunded upon completion therefore making it a totally fee free product once yoy have completed.

    The only time you will have to pay any fee is if the mortgage doesnt complete for any reason.

    If you have been given a Key Feature Illustration then it should be detailed in there.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • payless
    payless Posts: 6,957 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    H,

    I belive this is a existing customer, not moving house rate swap .. so they get the rates on offer ( with or without fees) but pay £250 admin fee
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • homer_j_3
    homer_j_3 Posts: 3,266 Forumite
    I havent seen the exist customer bit in the thread but for new customers

    If you look on here http://www.alliance-leicester.co.uk/mortgages/index.asp?page=all-rates&ct=mortgagesellmenu

    Im not sure if it will link with the explanation open but if it hasn't then if you look for the 2 year fixed rate 5.89% (feesaver) for 2 years and then click the orange arrow to the right and it explains it all there.

    I have done a few of these recently so I hope I am right or else I will have some unhappy clients!!
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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