Buy to let mortgage(unregulated by FSA) - can i reclaim charges ?

clutton_2

hi - does anyone know if Buy to Let mortgage products are also allowed to reclaim charges and has anyone been successful ? thanks

one mortgage i looked into today wants £5,312 initial arrangement fee and £10,625 closing fee !!!!!!!!!!!

dunstonh

one mortgage i looked into today wants £5,312 initial arrangement fee and £10,625 closing fee !!!!!!!!!!!

That sounds like an early redemption charge and there is nothing wrong wtih those.

clutton_2

but can i reclaim arrangement fees on BTL mortgages (unregulated products) and exit fees such as sealing fees, closing fee, deeds release fee etc ?

dunstonh

No. There is nothing unlawful about them.

The only fee that has been under review has been the redemption charge which is typically £100-£250. If this has increased beyond an unreasonable amount above what you were told on the contract, you can claim back the difference.

Every other charge is valid and lawful.

clutton_2

thanks dunston - its a long time since i looked at my old remortgage documents - do lenders normally charge a redemption fee if there are no ERC charges ?

i would most sincerely like to know how a lender justifies charging anyone £5312 for selling a mortgage to me !!!

MarkyMarkD

Eh?

They charge a fee of £5312 in exchange for offering a cheaper rate on the loan. It's hardly anything at all to do with the costs of selling you a mortgage - it's because the mortgage rate itself is not very profitable if at all.

Having said that, there are obviously set-up costs, not least the cost of paying the mortgage broker.

clutton_2

back to original question - can i reclaim redemption charges on a BTL mortgage ?? i dont want to dig out old files in the roof space for no good reason !

KTF

Was there a tie in with the mortgage and you redeemed it within that period? If you did then they are entitled to charge you the penalty.

toonfish

spend your weekend doing something productive, rather than scratch round in the loft on the off chance of reclaiming £75.

lynzpower

toonfish wrote: »

spend your weekend doing something productive, rather than scratch round in the loft on the off chance of reclaiming £75.

hang on mate! this is moneysavingexpert!

75 quid is 75 quid at the end of the day! If clutton can get it back, then all power to her :beer:

Scott

You may be able to reclaim them, but BTL is by nature unregulated, so it's by no means guaranteed.

Have you tried calling the lender before you go digging through your files? Might be easier to knock on the head than you think.