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Mortgage fees

Why do I have to pay a £995 fee when I want to remortgage my house? What does this get me. Don't lenders earn enough though the interest?

Comments

  • dunstonh
    dunstonh Posts: 121,101 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Why do I have to pay a £995 fee when I want to remortgage my house?

    You dont. You are chosing to buy a retail product that has a charge but offers a lower rate because of it. No-one is forcing you to buy that product.
    What does this get me.

    Better terms typically. Unless you are no good with a calculator.
    Don't lenders earn enough though the interest?

    No. Some fixed rates have no profit on the interest rate at all. The fee is where the money is made.
    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.
  • I am in the same situation, although the fee is a bit higher.

    Are these fees negotiable?

    Basically, my broker has found me a deal with another bank which would save me a few quid over my current banks best renewal deal. I don't mind going through the procedure of threatening to leave my current bank if it can get me somewhere - but if there is no point I'll just let my broker deal with it all and switch.
  • dunstonh
    dunstonh Posts: 121,101 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Are these fees negotiable?

    No. They are retail costs set at central pricing with no local discounting possible
    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.
  • MarkyMarkD
    MarkyMarkD Posts: 9,913 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Lenders don't spend lots of effort pricing their products just to let some branch/call centre member of staff go around offering discounts. There simply isn't enough margin in the products to do so.
  • tis a shame.

    I know its all about the math, but I quite liked the few dealings I had with my current lender. However, if they won't move for me, I'm guess I'm gonna move....
  • MarkyMarkD
    MarkyMarkD Posts: 9,913 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Well, there is a lesson there, which is to choose a lender in the first place which allows existing borrowers the same deals as new borrowers. I'm presuming that your lender isn't one of those, or is it simply that their new borrower products are not competitive right now?

    It's certainly a lot less hassle to stay with the same lender and I will do that when my current deal expires if it makes reasonable financial sense to do so - which I expect that it will. :)
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