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Mortgage booking fee
Brosgidi
Posts: 10 Forumite
My current mortgage deal expires on the 31st September.
I have already applied for a new mortgage with the same lender at a reduced rate of 0.99% due to start on 1st October. This new mortgage has a booking fee of £1499, which i asked to be added to the mortgage.
I logged on to my current mortgage this morning only to find that the £1499 has already been added to my mortgage balance. This means that i will be paying interest at my current rate of 2.79% on the booking fee for a deal that is due to start in 2 months.
It doesnt sound right or fair to me, to have to be paying interest on a fee for a deal that is yet to start. So i called the lender and they told me that it is a booking fee and it had to be paid to secure the mortgage before the mortgage started, so they charged it straight away.
So i asked them, what if i were a new customer without a mortgage with them and had asked for the booking fee to be added to the mortgage, what would they have done?
They had no answer to this but insisted that adding the fee to my current deal is the right thing to do.
Clearly, paying interest at 2.79% for a fee for a product that is due to start in two months cant be right?
Any advice please?
I have already applied for a new mortgage with the same lender at a reduced rate of 0.99% due to start on 1st October. This new mortgage has a booking fee of £1499, which i asked to be added to the mortgage.
I logged on to my current mortgage this morning only to find that the £1499 has already been added to my mortgage balance. This means that i will be paying interest at my current rate of 2.79% on the booking fee for a deal that is due to start in 2 months.
It doesnt sound right or fair to me, to have to be paying interest on a fee for a deal that is yet to start. So i called the lender and they told me that it is a booking fee and it had to be paid to secure the mortgage before the mortgage started, so they charged it straight away.
So i asked them, what if i were a new customer without a mortgage with them and had asked for the booking fee to be added to the mortgage, what would they have done?
They had no answer to this but insisted that adding the fee to my current deal is the right thing to do.
Clearly, paying interest at 2.79% for a fee for a product that is due to start in two months cant be right?
Any advice please?
0
Comments
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You do realise you're quibbling about £6.97?0
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Thats not the point though.
Is it right or not?0 -
Make a complaint.
If you don't get the outcome you require in the 8 week allowed timescale, escalate the complaint to FOS.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Thanks Kingstreet.
So from your experience, it is not right?0 -
No experience.
Simply setting out your options.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Some lenders sub accounts for the fees do not get the mortgage deal rate applied to them but get the standard variable rate.It doesnt sound right or fair to me,
A booking fee is payable in advance.
At the end of the day, they are not going to argue over a few pounds.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 -
Okay, a booking fee is payable in advance.Fair enough.
So how do new customers who choose the option to add it to the mortgage pay it in advance?0
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