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Do some lenders charge a product fee when switching to a new deal?
JackeeBoy
Posts: 229 Forumite
My mortgage is up in January and I went through a comparison website and got an offer from NatWest and my current mortgage is with TSB. TSB offered me a new deal which is slightly more expensive than the NatWest offer but as I don't have to pay an arrangement fee, the difference is like £200 over 5 years in regards to overall cost. Also, the other benefit is I don't have to add the arrangement fee on my loan or pay it up front.
My broker is insisting that TSB will in fact charge me a fee for switching to a new deal. I'm not saying I'm an expert but I do have a financial background and haven't heard of this before from a mainstream lender. Is there something I'm missing?
My broker is insisting that TSB will in fact charge me a fee for switching to a new deal. I'm not saying I'm an expert but I do have a financial background and haven't heard of this before from a mainstream lender. Is there something I'm missing?
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Comments
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I am with Virgin, I switched to a new product with them earlier this year and they added a £999 fee to the balance. It is not uncommon.I am a Mortgage AdviserYou 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.0
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Depends on the deals on offer. They will either offer a higher rate with no fee, or a better rate with a fee. Just need to do some sums.
Maybe the broker can't see the deal you've been offered as it's internal to tsb0 -
Remember to take into account the remaining balance at the end of the initial period, not just the monthly payments and fees.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
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The NatWest product I have just switched to was £995 (added to the balance). You generally have the choice, but the rate without the fee was appalling.0
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TSB should state clearly in their communication to you about a product fee. What did they send to you?0
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