Remortgage rant

cazziebo

I'm only just building up knowledge and having had an IFA arrange everything for me last time, I'm in the position of remortgaging at the end of a fixed rate deal so this is my first experience of mortgaging on my own.

Why is there a £2k arrangement fee to renew a mortgage with the same company? I really don't understand this - it's online, I've been with them for five years already, it's the same house? In what other area would you get away with charging customer for getting their business for a fixed amount of time, at a cost, with heavy penalites if you remove it?

arrgh! I've got some serious questions but let me get used to this first - what an expensive business!

KTF

The fee is there because you are 'buying' the product - low rate, fixed rate, etc. If you dont want to pay the fee then there are plenty of other products to choose from.

Also, are you confident enough to choose your next mortgage given that going through a broker would probably cost you nothing and they have access to deals the public dont.

Gorgeous_George

You need to decide how long you would stay loyal to each mortgage that you consider. Then taking the arrangement/exit fees etc., together with the interest rates it is quite easy to work out which of your chosen mortgage products is best for you.

When I moved to Britannia there were no arrangement/start-up fees, the survey was free and my total contribution for legals was just £80.



GG

eek

cazziebo wrote: »

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Why is there a £2k arrangement fee to renew a mortgage with the same company? I really don't understand this - it's online, I've been with them for five years already, it's the same house? In what other area would you get away with charging customer for getting their business for a fixed amount of time, at a cost, with heavy penalites if you remove it?

The fee is there to give them the profit on the mortgage. For many people the low rate + high fee seems a better deal than the high rate no fee the bank is probably also offering.