Arrangement Fee...Justify!!

dunstonh

Gorgeous_George wrote: »

Maybe they should offer a £100K mortgage at 0% with a £80K fee.



GG

Is that with a buy one get one free offer?

This "justify" fees thing is daft because it isn't required. A lot of trade associations or regulators expect a fair price and will act when something it unfair. However, buying a new fixed rate deal is a retail charge and if you dont like it you dont buy it. Just because penalty charges have to be justified, all of a sudden certain people seem to think all fees have to be justified.

This "I am existing customer and loyal" is also bull. You are buying a product every two years or so and you are paying for it in the same way you buy from the supermarket every week and pay for that.

You dont have to buy a new product but you want to "upgrade". I have had 3 televisions in the last 12 years. First a decent 4:3 screen, then a move to Widescreen, then a better widescreen. I want an HD king size jobby but you dont go to Currys asking for it for free because you bought the other ones from them before. You either keep what you have or you buy a new one.

Leon_W

I like this thread a lot. I too am getting a little fed up with all this fees nonsense as there was another load of misleading guff in the Mail on Sunday this week about fees. Dunstonh makes all the points necessary to understand how the fees versus rate issue works (and very well too I might add dunston).


dwsjarcmcd makes a point about "Best Buy Tables". Now these really get my goat !. There is NO SUCH THING AS A MORTGAGE BEST BUY !!!. For instance, top of the table for 2 YR Fixed rates is 5.5% with a £299 fee. Under that is a 5.4% with a 1% of loan fee. Which is cheaper ?? Could be either.IT ALL DEPENDS ON THE SIZE OF THE LOAN. What is good for someone with a £25,000 mortgage will be totally (in all probability) different to someone whos' mortgage is £2,500,000. There is far to much reliance (it's in print so it must be true) on these tables.

I've recommended mortgages to clients who then go "Ah, well, it says in (insert publication here) that this is the best rate" but after going through the figures see the error of their ways.

It's about time that someone made sure these tables were Clear, Fair and Not Misleading !

dwsjarcmcd

Leon_W wrote: »

dwsjarcmcd makes a point about "Best Buy Tables". Now these really get my goat !. There is NO SUCH THING AS A MORTGAGE BEST BUY !!!. For instance, top of the table for 2 YR Fixed rates is 5.5% with a £299 fee. Under that is a 5.4% with a 1% of loan fee. Which is cheaper ?? Could be either.IT ALL DEPENDS ON THE SIZE OF THE LOAN. What is good for someone with a £25,000 mortgage will be totally (in all probability) different to someone whos' mortgage is £2,500,000. There is far to much reliance (it's in print so it must be true) on these tables.


It's about time that someone made sure these tables were Clear, Fair and Not Misleading !

Leon, agree with your last comment 100%, my only other thought would be that there must be a 'best buy mortgage', the problem is that they are unlikely to be the one at the top of the best buy table!!

David