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Arrears Management Fees
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Scooby60
Posts: 8 Forumite
Can anyone advise? I had arrears on my mortgage several years ago, so came to an arrangement with my mortgage provider to repay each month and included this with my monthly mortgage repayment.
Each month an Arrears Management Fee is deducted, plus interest and my mortgage repayment. Surely to charge regular monthly amounts of this fee is disproportionate to the actual costs they incur? The arrangement has been in place several years and they are still adding this fee on every month. Appreciate your views!
Each month an Arrears Management Fee is deducted, plus interest and my mortgage repayment. Surely to charge regular monthly amounts of this fee is disproportionate to the actual costs they incur? The arrangement has been in place several years and they are still adding this fee on every month. Appreciate your views!
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Can anyone advise? I had arrears on my mortgage several years ago, so came to an arrangement with my mortgage provider to repay each month and included this with my monthly mortgage repayment.
Each month an Arrears Management Fee is deducted, plus interest and my mortgage repayment. Surely to charge regular monthly amounts of this fee is disproportionate to the actual costs they incur? The arrangement has been in place several years and they are still adding this fee on every month. Appreciate your views!
Pay the arrears off? You could take out an unsecured personal loan to repay the arrears which will stop the monthly fee and potentially save you money.:footie:Regular savers earn 6% interest (HSBC, First Direct, M&S)
Loans cost 2.9% per year (Nationwide) = FREE money.
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We are paying it off anyway as we've recently had an offer to sell and have accepted - however, I didn't know whether anyone felt that the charges were disproportionately placed and whether we could appeal?0
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The regulator did a review into arrears charges and found very few issues with mainstream lenders. However, it did find some issues against sub-prime lenders and they had to refund some.Surely to charge regular monthly amounts of this fee is disproportionate to the actual costs they incur?
What evidence do you have to come to that opinion?
Are you on a sub prime mortgage or prime mortgage?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
This is a sub-prime mortgage with Acenden, (aka Eurosail, SPPL)0
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also formerly Capstone!0
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..Because I cannot see how they arrive at regular monthly costs of around £100 for an arrears management fee, when all they did was to add the fee onto my statement, when the arrangement had already been put in place.
They have previously written down that if an arrangement has been put in place and regularly paid, they will not add charges.0 -
I'd agree that sounds disproportionate to me calling it 'admin'.
They should have phrased it as 'risk fee' or something like that.
I have no idea how you can challenge it though. Ombudsman maybe?0
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