Can you negotiate to remove the HLC?

tony_baduk

We're looking at a mortgage for £140,000 with a £8,000 deposit. Some lenders with better fixed interest rates are charging a HLC, - can this be removed or even negotiated?

Is it better to speak to the lender direct or through the advisor?
What is the best fixed rate without a HLC?

We're FTB's by the way.

Thanks in advance.

Trying_to_be_good

The reason the rate's cheaper is because they're charging the HLC, so I don't think they'll let you off it/reduce it. But I guess it's always worth asking.

Have you tried a whole-of-market fee-free broker?

tony_baduk

We spoken to a chargeable broker. He suggested Bristol & West who offer a rate of 5.89 fixed for five years for around £848 per month.

However there is the arrangement fee to pay. Can arrangement fees be negotiated/removed?

Trying_to_be_good

Again, you can try, but it's all just a big game - they can lower the interest rate you pay by charging a higher fee - they'll get the money one way or another. When I've remortgaged previously I've worked out what the deal will cost over the five years, so you include the fee as well as the interest charge. This is the only way to compare the different products.

As FTBers it's probably the loan-to-value (LTV) that'll dictate what deals you can get, unless you have a HUGE deposit. That's why the HLC will apply, because of the high LTV, though as you've found, some brokers don't charge one (just a different policy).

tony_baduk

Thanks very much 'Trying to be good' for your replies.

Helpful indeed.

AndrewSmith

Mortgage products and rates are priced and costed just like any other product available to buy.The rate offered is dependent upon the terms and conditions, including redemption penalties and arrangement fees, to make it viable for the lender to offer.99.9% of cases there is absolutely no room for negotiation.

herbiesjp

Sounds like you need to ask the broker to find you deals with no HLCs and no, or low, arrangement fees

dan1979

Save the haggling for market stalls, there is no chance you'll get things like that waived.

mrsangry_3

I am about to pay off my mortgage so of course wrote to the lender asking about the process. I was to say the least a bit surprised about the Administration charge and when I looked at the various lenders I note that Alliance & Leicester are currently charging top rates at £300. Unfortunately I paid an arrangement fee of £545 when I set up the fixed rate so in some respects A. & L. are fulfilling the requirements of the FSA by charging less than the arrangement fee. However this is still an outrageous charge and is not consistent with other lenders. Do I just grin and bear it - feel ready for a fight though!:mad:

dunstonh

Unfortunately I paid an arrangement fee of £545 when I set up the fixed rate so in some respects A. & L. are fulfilling the requirements of the FSA by charging less than the arrangement fee.

You have your fees mixed up and its not unfortunate you paid £545. Its a fair and valid retail charge for buying a fixed rate. Redemption charges have nothing to do with it.

However this is still an outrageous charge and is not consistent with other lenders. Do I just grin and bear it - feel ready for a fight though

You agreed to it when you took the mortgage out so there is nothing you can do about it unless the amount has changed from what was agreed.

BTW, please use your own thread and do not hijack someone elses. It creates messy threads and is not fair on the original poster.

dwsjarcmcd

Why don't you ask the lender to waive the HLC, arrangement fee and the interest charges, while your at it!