Product Fee

mrcice

Both my husband and I took out a mortgage with the Alliance & Leicester in November 2006.

We were charged £999.00 for a non-refundabel product fee which is for taking out a repayment mortgage with them and having it at a fixed rate for 2 years.

Can they do this?????

dunstonh

Can they do this?????

Goodness gracious. You mean you bought something and you had to pay for it. How dare a retailer charge you for something you have bought.

Of course they can do it. The charge is legal, fair and valid (and other similar words you care to use).

_Andy_

mrcice wrote: »

Both my husband and I took out a mortgage with the Alliance & Leicester in November 2006.

We were charged £999.00 for a non-refundabel product fee which is for taking out a repayment mortgage with them and having it at a fixed rate for 2 years.

Can they do this?????

I must say I'm becoming quite impatient with the ever increasing threads like this.

Why shouldn't have A&L charged you whatever they wanted?
What really grates me is that you quite happily paid for it and then just over a year later seem to think it's somehow unfair.

InMyDreams

mrcice wrote: »

Both my husband and I took out a mortgage with the Alliance & Leicester in November 2006.

We were charged £999.00 for a non-refundabel product fee which is for taking out a repayment mortgage with them and having it at a fixed rate for 2 years.

Can they do this?????

Hi mrcice, and welcome to MSE!

I hope you aren't put off by the responses by the experts, but there exasperation is somewhat understandable because the question is asked repetitively.

They are of course correct, but this is commonly misunderstood. Had you wanted a mortgage product with no fee, they are easy to find, but the pay off is that the interest rate charged will be higher. Essentially you have paid £999 for 2 years of a fixed, preferential rate. When that 2 years is up, you have to decided whether to pay higher interest or to pay again to keep monthly payments down. It's swings and roundabouts and what's the best deal for one won't be the best deal for someone else.

The fees that people have been reclaiming are exit fees. When you pay off your mortgage (or swap to another provider) you are charged a fee which in some cases has been more than what was initially agreed and people are claiming back the difference. As you would have agreed to the £999 at the time, you can't now say that you didn't want to pay it.

KTF

This forum really needs an FAQ as a sticky covering stuff like this as the same questions keep coming up again and again.

graduate2012

_Andy_ wrote: »

I must say I'm becoming quite impatient with the ever increasing threads like this.

Why shouldn't have A&L charged you whatever they wanted?
What really grates me is that you quite happily paid for it and then just over a year later seem to think it's somehow unfair.

From what i read, she gave no indication, nor did she illustrate in anyway that she thought it unfair, there is a chance, don't you think, she was maybe simply curious

I thought these forums were to exchange opinions, information etcetera

Not to make unfair statements, and arguably, untrue statements

dunstonh

Maybe the five question marks indicating incredulity was a clue.

jedimonkey

Im not sure a sticky would help - most people post without reading/searching properly. I was a browser on these boards for months before making my first post..... and havent made many since (accoring to my post count <- ) as most of the info i needed was already on the boards somewhere - just needed to search it out.

PasturesNew

dunstonh wrote: »

Maybe the five question marks indicating incredulity was a clue.

I would agree with this viewpoint. Whenever I see ??????? or !!!!!!! I always read it that the poster is furious/outraged/angry/fuming .... and looking for blood!!!!!!!!!!