Mortgage fees

Redbedhead

I know there has been discussion regarding claiming back of early repayment fees for mortgages, but does anyone think that may start to happen with mortgage application fees?

We are currently looking for a new mortgage when we move house and one of the oprtions has a hefty £1900 fee:eek: Previously I have paid fees on each remortgage but the max I have paid is £350. Now I can understand how they can £350 of admin time so I always paid that but I can't see what they are doing to justify a £1900 fee. Can anyone shed any light as to why they are setting the fee so high? Is it likely to be challenged in the future?

Thanks

AndrewSmith

There will never be any success in claiming back application or arrangement fees.

like any other retail product the provider can set the 'price' at whatever they like, you have the choice as to whether to pay the fee or not simply by which product you select.

It's a bit like walking into a car showroom and saying you want to buy the BMW 320 but want it for the same price as you have seen the Vauxhall Vectra down the road or you will sue them for the difference.

The response from the lender would be pretty much the same as you would expect from the car salesman.

There is nothing unlawful or illegal about these charges as you are the one who decides whether you pay it or not. It is the same with early redemption penalties. You agree to take the mortgage at an incentive rate for x number of years, you sign to state that you will pay the penalty if you leave early.

Do not confuse this with exit fees which in some cases it is possible to reclaim the difference between what you were originally told and what they are charging now. The average successful claim is between £50-£150.

Redbedhead

Thanks for that - I did think that would be the case, particularly as you are aware of the fees when you take the product.