High Remortgage Fees

dave667767

I recently remortaged with Abbey (fixed rate deal) and although they didn't charge me an exit fee to change it over, they did force me to pay another £1000 to get the new mortgage! I understand that I would have had to pay a fee to remortgage with another lender, or to Abbey as a 'new' customer, but being an existing customer (where there was hardly any extra paperwork/checks to do etc) and still having to pay it seems very unfair to me. Has anyone else found the same? Any advice?

dunstonh

they did force me to pay another £1000 to get the new mortgage!

Really? So, Abbey came round your house, marched you into the branch and forced you to buy a mortgage with a £1000 arrangement charge?

but being an existing customer (where there was harly any extra paperwork/checks to do etc) and still having to pay it seems very unfair to me.

How do you think Abbey got the funds to be able to offer that fixed rate? That is where the real costs are. Not the paperwork. Abbey may even be losing money on the rate they are offering and only turning a small profit thanks to the arrangement fee. Deals are costed over the period of the tie in.

Any advice?

Yes, next time get advice. All this would have been explained to you and you probably would have got a better deal as well.

Mortgages are a retail product. You bought this product knowing the charges. You didnt have to buy it. You could have gone with one with no fees or lower fees.

dylansmum

dave667767 wrote: »

I recently remortaged with Abbey (fixed rate deal) and although they didn't charge me an exit fee to change it over, they did force me to pay another £1000 to get the new mortgage! I understand that I would have had to pay a fee to remortgage with another lender, or to Abbey as a 'new' customer, but being an existing customer (where there was hardly any extra paperwork/checks to do etc) and still having to pay it seems very unfair to me. Has anyone else found the same? Any advice?

If the mortgage is an offer/special - fixed, discount, tracker etc then that's what happens with lots of the banks because they make back the money 'lost' on interest via a fee (all depends on the size of your mortgage as to whether it worth paying a fee compared to higher itnerest and how fast you can pay off the loan ect) - if you go onto SVR then they don't charge. Halifax do the same so we are shifting our mortage - not all lenders charge a product fee for lower rates and many charge less than 1K. Have you already signed the paperwork?

absolutebounder

dave667767 wrote: »

I recently remortaged with Abbey (fixed rate deal) and although they didn't charge me an exit fee to change it over, they did force me to pay another £1000 to get the new mortgage! I understand that I would have had to pay a fee to remortgage with another lender, or to Abbey as a 'new' customer, but being an existing customer (where there was hardly any extra paperwork/checks to do etc) and still having to pay it seems very unfair to me. Has anyone else found the same? Any advice?

Hey I like the theory here.
I need a new boiler as as Im anexisting customer do you think bosch will install the new one free for me?

dave667767

I understood that there was going to be a fee and that's fine - it just seemed like £1000 was excessive. I did get advice and was told that that was the best deal I could get - I also looked around and found that to be the case for the rate I was being offered. I understand that Abbey have to make their profits but aren't they being, gosh dare I say it, a tad greedy perhaps?

dwsjarcmcd

dave667767 wrote: »

I understood that there was going to be a fee and that's fine - it just seemed like £1000 was excessive. I did get advice and was told that that was the best deal I could get - I also looked around and found that to be the case for the rate I was being offered. I understand that Abbey have to make their profits but aren't they being, gosh dare I say it, a tad greedy perhaps?

No, if you didn't want to pay the fee, you could have sourced a product that had a higher rate but a lower fee, or alternatively no fee at all but you would have had to pay a much higher rate.

You seem to want your cake and eat it!

Conrad

Dave I'm getting tired of Brits claiming company greed.

On the one hand 'we' want companies to be cheap and in the next breath 'we' complain when we hear a family member didnt get a payrise.

So what to you want?

Everything cheap and we all get paid less?

Conrad

And another thing no one seems to understand;

Lets say a Bank declares 35bn in profits. Typical unthinking people will react like this "thats greed, it shouldnt be allowed"

The thinkers amongst us think:

"That;s great as these profits go to the investors, and who are they - that's right our and our Nurses pension funds"!!!!!!!!!!!!