Mortgage Fees - Are they unlawful?

jldougal

Hi,I am about to get my first ever mortgage but the fees seem very high - the 'Arrangement fee of £2,000', the 'exit fee' and even a charge of £25 for NOT taking their buildings insurance. There's also £250 for having my husband's name added to the deeds of the house. Are these fees Lawful - do i have to pay them? It seems to me that they might fall under the same bracket as bank charges and if so, do the mortgage company have to justify to me how exactly they arrive at the £2000.00 arrangement fee - what is it spent on? Or am i waisting my time.Thanks very much - it's all so complicated and scarey,Jlb

dmg24

So do you think that the banks should give you a discounted rate for their money for free?

homer_j_3

:wall: :wall: :wall: :wall: :wall: :wall: :wall: :wall: :wall: :wall: :wall: :wall: :wall: :wall: :wall:

Please use the search function as this topic has been asked so many times.

Please can I have my post made a sticky?

KTF

No, the fee you pay is because you are 'buying' the product, just like you pay for goods from a shop. If you dont want to pay a fee then there are plenty of other mortgages out there with lower or no fees.

The other fees are a fee for a service. There are costs involved with adding a name.

UK007BullDog

In a nutshell

Very low interest rate = Very high fee

Middle of the road interest rate = "moderate" fee

High interest rate = no fee or very low fee

Poppycat

One thing about these fees as its very difficult comparing like for like as you have to factor in these fees compared with some mortgage that have none or low fees

Leon_W

You can even add to that Bulldog.

Even Higher Rate = Cash Back !

No disrespect OP, but as homer says, this topic has been done to death on other threads, if you use the search function you should be able to find them.

Regards

owitemisermusa

Methinks you should be looking at another lender - those fees seem excessive.

Dan_Collins_2

No. But you need to work out if its worth you paying the fee against any savings in rate.

_Andy_

jldougal wrote: »

Hi,I am about to get my first ever mortgage but the fees seem very high - the 'Arrangement fee of £2,000', the 'exit fee' and even a charge of £25 for NOT taking their buildings insurance. There's also £250 for having my husband's name added to the deeds of the house. Are these fees Lawful - do i have to pay them? It seems to me that they might fall under the same bracket as bank charges and if so, do the mortgage company have to justify to me how exactly they arrive at the £2000.00 arrangement fee - what is it spent on? Or am i waisting my time.Thanks very much - it's all so complicated and scarey,Jlb

As per what everyone else put..also to say the £250 is the extra conveyancing costs for the legal work - I really have no idea why you think this, or any of the fees that you chose to pay for by going for that mortgage product could possibly be unlawful.
If you feel the fees are excessive then take a fee-free or low-fee product but be prepared to have a high/higher interest rate.

dunstonh

I went to the car dealer and they had a car in there for 10k. They also had a car for 30k, 50k and 80k.

How can it be legal for them to sell cars at those prices? How can they jusifty selling one car for 80k and another for 10k? Oh its so unfair that i should be forced to pay 50k for a car.

blah blah blah.... :wall: :wall: :wall: :wall: :wall: :wall: :wall: :wall: (just knicked those from homer)