Application Arrangement Fees - Mortgages!

eldowardo

Noz wrote: »

nice borderline libelous comment there

on what grounds is what i said libelous... i think its called having an opinion - if u read what ive posted before youll see what my views are on these fees

Woby_Tide

eldowardo wrote: »

on what grounds is what i said libelous...

the bit where you say that anyone who disagreed with you is evidently being paid by the banks regardless of what they tell you

Noz

spot on Woby_Tide

Conrad

People that cry 'such fees are disgusting' should be aware it makes them come accross as having a narrow bandwidth, unable to see the whole picture.

Kaz64_2

Have read this thread with interest.... I am just about to take out a fixed rate mortgage that has a £1500 arrangement fee, and the interest is 5.85%...... so now I understand why there are bigger fees on some mortgages. The only thing I am a little concerned about is having it thrown in with the loan... but apparently it's safer to do it that way in case it all goes pear-shaped on the house sale. If I paid up front, I would lose that £1500.

Conrad

Kaz, thats not correct.

Assuming this is a lenders, not a brokers fee, you will never pay it up front, it's either added to the loan on completion or simply paid by you or deducted from the loan at completion. Once you complete your totaly commited anyway so the house falling through bit is irrelevant.

bsullivan

snax0 wrote: »

:mad: IS IT REALLY JUST ME - or are mortgage application fees a total and utter rip-off? My worry is that these are a result of us all (well nearly all) becoming money savvy & more aware (thanks Martin) - about the stunts banks have pulled on us!

I know application/arrangement fees can be added to the loan but isn't this just all the better for the banks?

Sorry to rattle on but does anyone know where I can get a free mortgage without having to pay an extra £995 on top just for signing the papers? I am currently "with The Woolwich" - and to switch they want to charge an extra £100 on top of the £995 JUST BECAUSE I AM ALREADY AN EXISTING CUSTOMER!

I'm sorry but I really find this practice disgusting! Am I missing something here?

Savvy friends - please please help me if you can...

Snax0

YOU CAN MISS THESE FEES AND CHARGES BUT YOU WILL NORMALLY HAVE TRADE OFF A INTEREST RATE IN ORDER TO GET A LOWER FEE.THE LENDERS ARE MAKING A FORTUNE AT THESE FEES,WHAT THEY GIVE IN ONE HAND EG LOW INTEREST RATE THEY TAKE BACK IN ANOTHER IN THE FORM OF ADMIN FEES ETC,ITS POSSIBLE TO GET A GOOD DEAL BUT IT A MATTER OF LOOKING AT THE OVERALL DEAL.
IF YOU NEED TO OVERCOME THESE FEES IM HAPPY TO HELP

bsullivan

You can avoid some of these charges but you may need to trade off something eg interest rate,the trick is to look at the overview and not be lead by rates alone.
If you need any help let me know

wannasavemoney

I have a mortgage with the woolwich - now owned by barclays and have found that since barclays took over the mortgage my choice has widened. I have changed my mortgage account from an offset to a tracker and also taken advantage of the new tracker rates as and when they came along which now means that my mortgage is tracked at .19 above the base rate and starting to come down nicely with interest rate cuts. All of these changes have been free. My point is, that each time I made sure when changing the mortgage that the fees did not outweigh the benefit of changing in the first place - maybe I was lucky and did it at an opportune time. I always found that using a comparison ie: what another mortgage lender could offer me, helped to bring prices down and that is when retaining a customer seems to take priority over charging fees in the first place. A more informed choice seems to be what is needed. I have found that whenever a good interest rate is offered, the lender tries to recoup some of their expenses in higher charges.

Mr_helpful

The fees are a con. prior to regulation there were nothing like the fees now being applied. I think there is a case for complaining under the FSA's treating customers fairly rules except that they have a get out clause in that they only regulate the sale not the !!!!!! you are being sold.