Mortgage Arrangement Fee

AndyWilky

I switched Mortgages from Nationwide to Woolwich (Barclays) about 10 yrs ago as I wanted to clear some debt and make home improvements and Nationwide would not lend me any more, don't know why as it was a case of 'Computer says No'.
The Woolwich offered me what I needed as I had capital in the house.
The arrangement fee was £1000
I took out a 14yr mortgage, to finish the same time as original one.
At the time the 'arranger' said would you like to pay it now or add it to your loan.
As we had no money to pay it up-front we agreed to add it to the loan.
My point is we were not offered any advice or services to pay it seperately or a cheaper way. eg a short term loan or even to put it in a credit card so I wasn't paying it for 14 or so years.
I was pretty trusting and naive.
Do I have any grounds to claim some or say the interest I paid as I feel I was not given proper advice, miss- sold a loan if you like.
My Mortgage has just over 5 yrs to run.
Any advice would be appreciated.
Thanks in advance.
Andy

[Deleted User]

AndyWilky wrote: »

My point is we were not offered any advice or services to pay it seperately or a cheaper way. eg a short term loan or even to put it in a credit card so I wasn't paying it for 14 or so years.

You paid for a service ( a new mortgage arrangement), it was your own choice whether to accept the cost and how you wished to pay.

Why do you think bank staff ( "arranger") should have steered you towards a "cheaper" payment method?

They were not Independent Financial Advisors, they were under no obligation or duty to "advise" you at all.

Why do you think they should have offered a short term loan in addition to the mortgage? If you didn't apply for an additional loan, it's not mis-selling to not offer one.

I also can't see any way paying by credit card would have ended up cheaper either, since you concede that you had no money to pay upfront and card interest would have been far higher than mortgage interest.

AndyWilky wrote: »

Do I have any grounds to claim some or say the interest I paid a

Nothing you have said indicates any mis-sale took place.

Sorry.

dunstonh

My point is we were not offered any advice or services to pay it seperately or a cheaper way. eg a short term loan or even to put it in a credit card so I wasn't paying it for 14 or so years.

1 - you are not required to be offered a loan. Indeed, a loan would likely be more expensive (higher interest rate)
2 - putting it on a credit card would be highly expensive.
3 - you have contradicted yourself as you say you were not offered to pay it separately. Yet in an earlier sentence you confirm you were asked if you wanted to pay it separately or add it ot the mortgage.

Do I have any grounds to claim some or say the interest I paid as I feel I was not given proper advice, miss- sold a loan if you like.

None whatsoever.
1 - if you wanted proper advice then you should have seen a mortgage adviser and not a bank clerk.
2 - doing it on a loan may well have been a mis-sale had it happened. So, good job it didnt.
3 - you are free to repay the fee at any time. Either in one go or stages.

Fizzy11

The rules were different 14 years ago & no one was obliged to explain about the arrangement fee having interest added to it. You said you couldn't afford to pay it upfront so you had no choice. Banks didn't accept credit card payments. If you knew there was a charge it was up to you to have the money before arranging the mortgage.