Feesaver - but charged a fee!

longbaygirl

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?

KTF

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

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

longbaygirl

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

In all fairness it does say "Feesaver" ,which you have done.

If it had said Fees Free I would have agreed with you.

payless

longbaygirl wrote: »

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.

Leon_W

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

Did say mis-leading, just maybe not greatest choice of name

homer_j_3

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.

payless

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

homer_j_3

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!!