Why?

EdInvestor

"Fee income" is all the rage these days, since they all discovered how easy it was to charge the mug punters, and how much more lucrative it is than simply getting spreads between interest rates.

And given that fee income has been curtailed in some areas by regulatory and court action,plus other profits are being hit by the credit crisis, you can expect it to crop up in newer areas, especially those where mug punters (who don't have much market power*) are populous.

The shareholders expect banks to maintain profitability after all.And the mutuals need decent cashflow so the staff and bosses can pay themselves fat salaries, bonuses and pensions.

It's just how business works.

*Mug punters do have some power: note that HSBC was forced to back down on overdrafts when the graduates launched a big protest this week.

jamesd

EdInvestor, remortgaging is often easy so the mug punters tend to have options besides sticking with an uncompetitive vedor. Though one advantage of a lifetime tracker mortgage is that you won't have any need to remortgage at a time when your credit or income might be temporarily impaired.

louisebabb

Living on the Isle of Man, we have limited banks/building society's. The one main thing that I was cross about, was why when I asked about the fee, the gentleman who was dealing with us could not answer why it was so much. The deal is pretty similar to the last offer we had, but we were not offered the same deal.

Thanks to those who gave positive advice, thanks to those who gave thier opinion where it be nice or not.

wymondham

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:

this is a rip off isnt it. I remortgaged for £175 with another provider, so this does not seem to be a fair way to treat an existing client, but I suppose they are there to make money!