Why?

louisebabb

Why am I having to pay nearly 600 pound, to keep my mortgage with the same bank, just because my 2 year agreement was up? Its a rip off. :mad: :mad:

Harvey's_Dad

I know .... My two year deal is up with the A&L. They want to charge me £849 to move to a Lifetime tracker at BOE base rate + 0.18% ( +0.99 % after 5 years).

I suppose at least I won't have to swap again.

toonfish

Presumably you are wanting a new fixed or discounted product from them and that's why they are charging you a fee? You can always look elsewhere but to be honest you're not going to get something for nothing as many people seem to expect.

The cost of providing the funding to the lender has to be recouped somewhere.

Fairdo_2

Market forces my dear.

They can, so they will. As toonfish mentioned, you are looking for a new preferential rate product with the same Lender, so they can charge you for the benefit. They would not charge you if you wanted to remain on their Standard Variable Rate, but I doubt that would be cost effective for you in the long run.

The benefit of staying with them is that you would not have to go through a Full Legal Remortgage, so a valuation and legal work would not need to be carried out, so it should speed the process up compared to changing Lenders. However, you will have a choice and if you do not agree with this by principal, or you feek you could get better elsewhere then vote with your feet and leave them.
I would suggest you talk it over with an Independent Mortgage Broker and get them to run through your options to stay or look elsewhere for a potentially better deal.:rolleyes:

dunstonh

Do Currys have to give you a new TV free of charge every 3 years just because you bought one from them?

The lender doesnt charge you anything to stay with them. You are choosing to buy a new retail product and it costs you £600 to buy it. If you dont like that, then dont buy it.

If the lender gave you the fixed rate without the charge they would lose money. So, why should other borrowers and savers have to pay for you to have a loss making rate?

Why not go into Tesco and walk out with a trolley load without paying and then use the excuse that you paid them last week and its a rip off to have to pay them again this week.

EdInvestor

It's just yet another fee to recoup the money lost through people reclaiming penalty charges on theitr current accounts.

dunstonh

EdInvestor wrote: »

It's just yet another fee to recoup the money lost through people reclaiming penalty charges on theitr current accounts.

I expected better from you. You have the sense to understand the economics behind fixed rate mortgages and how they are arranged and the costs involved. Yet you choose to jump on some misplaced bandwagon.

This has nothing to do with current accounts.

Gorgeous_George

EdInvestor wrote: »

It's just yet another fee to recoup the money lost through people reclaiming penalty charges on their current accounts.

I think it is to make their APR look more attractive than it really is.

I also think it is to discourage the nonsense of short term fixes. It is madness to change every two or three years when a mortgage is designed to be a 20/25/30-year product.

Short term fixes only benefit mortgage advisers, solicitors and surveyors etc., through churning.



GG

dwsjarcmcd

EdInvestor wrote: »

It's just yet another fee to recoup the money lost through people reclaiming penalty charges on theitr current accounts.

What! I could name dozens of Building Societies and specialist lenders who don't have current accounts but still have large arrangement fees.

Gorgeous_George

I think someone must have hacked into Ed's account. Either that or she can't wait for the monthly update on my SL policy tomorrow.



GG

jamesd

louisebabb wrote: »

Why am I having to pay nearly 600 pound, to keep my mortgage with the same bank, just because my 2 year agreement was up? Its a rip off. :mad: :mad:

What is the interest rate for the first two years of the original deal? What is the interest rate after the first two years? When did the bank tell you that they refused to let you continue with the original deal and pay the after two years interest rate?

You aren't paying to keep the original deal. You're paying to buy a new mortgage to avoid continuing with the original deal. Having this decision - stick with the original deal or buy a new mortgage - is a choice you made when you took out the original deal. If you don't like it, don't sign up for a deal with one rate for two years and another rate after that.

I suppose that you learned from being unhappy now and signed up for a lifetime tracker deal this time?

Or did you decide not to learn from your experience and sign up for another deal with one rate for the first two years then a different one? If so, just like last time, you have only yourself to blame for being unhappy. If you don't like something, stop doing it.