C&G Product Fee

euge595

Hi, I'm hoping someone on this Forum can help me. In 2008 a C&G Mortgage incurred a product fee of £995.00 was this fee relative to the amount borrowed?

ThePants999

Unlikely. Product fees are generally fixed.

ACG

It does not need to be relative.
Your mortgage could have been £1 or £1,000,000 the fee that came with the rate is the fee. It would have been on the KFI and mortgage offer.

euge595

Thank you Pants, the reason I'm asking is that in 2008 I took out a Mortgage with C&G for £130,000 and paid £995 product fee, I had an existing Mortgage of £110,000 with them so I was only borrowing an extra £20,000. My original mortgage term finishes in 2017 but the new loan expires in 2020 I assumed I was incurring the £995 product fee because they were treating it as a "new complete deal" but despite having a Mortgage offer stating you require a Mortgage of £130,000 for a period of 12 years TSB who have taken over C&G mortgages, are say the original term still applies and the 2020 only applies to the additional £20,000 which means I've paid £995 fee to borrow £20,000! I'd be interested if anyone else has experienced similar.

Thrugelmir

Were both sub mortgage accounts on the same product in 2008?

The differing term end dates have been apparent on your annual mortgage statements since 2008. Why the query now.

kingstreet

Was your sale advised, or information only?

For example, "please tell me which is the best deal for me..."

or

"Here is a selection of illustrations of our current products, pick one."

dunstonh

Hi, I'm hoping someone on this Forum can help me. In 2008 a C&G Mortgage incurred a product fee of £995.00 was this fee relative to the amount borrowed?

Most of the C&G ones of that era were fixed fees. i.e £995 whether you borrowed £20k or £200k.

My original mortgage term finishes in 2017 but the new loan expires in 2020 I assumed I was incurring the £995 product fee because they were treating it as a "new complete deal" but despite having a Mortgage offer stating you require a Mortgage of £130,000 for a period of 12 years TSB who have taken over C&G mortgages, are say the original term still applies and the 2020 only applies to the additional £20,000 which means I've paid £995 fee to borrow £20,000!

C&G use sub accounts for each bit of borrowing and each sub account can have its own deal. You wouldnt normally change the first account unless that happened to be outside the tie in period for the deal at the same time.

If it was meant to be a deal and no longer is, then chances are you are financially better off because of it. Most C&G mortgages are on base +0.25% or +0.5%. Absolutely no reason to have them in a deal as the cost of borrowing is so low.

euge595

Originally I had two sub accounts both ending in 2017 when I took out the additional loan it was agreed to move the existing end dates to 12 years so the entire mortgage finished at the same time 2020, and as I said previously the offer letter stated you require a Mortgage of 130,000 for 12 years. On the same offer document there was a "Description of this rate switch" which showed the two original sub accounts still ending 2017 and only the third ending 2020, which I queried. I spoke to the manager of my local C&G office who said, and I quote" I don't know why we set it out like this on the offers, I've come across this before, but don't worry the offer letter makes it clear the you require £130,000 over 12 years. I queried it again on a couple of occasions but wasn't able to get anything done. Believing it to be just a simple admin issue I really didn't treat it with the gravitas that I should have, even when I recently had a meeting with my local branch manager his initial comment was I'm sure we can get this sorted in a couple of minutes, he was so wrong!

euge595

I should add, it's an interest only Mortgage I had planned to downsize in a couple of years when I retire to clear it, but now I'm faced with potentially having to sell earlier than I would have wished, TSB have agreed that the wording on the offer is a bit ambiguous but are not showing much flexibility. Surely the wording on the offer "You require a Mortgage of 130,000. The term of the loan should be 12 years" takes precedent over the rate switch description.

ACG

You have not answered kingstreets question, was it advised or non advised (it will say on the mortgage offer).

Assuming it is non advised, I do not think there is much you can do as you made the decision to have a product that had a fee. If it was advised, you then need to prove you were given the wrong product, to do that you would need to know what products were available through C&G at the time.

I assume you can get a copy but I am not sure how long they need to keep a copy of their products for.

euge595

It was non advised, but the fee isn't really my issue, I don't see how you can have a mortgage offer that states clearly that it's for £130,000 for 12 years to be told 8 years later that only part of it is scheduled for 12 years, the remainder is only 9 years.