Mortgatge Product fee - Can these be waived?

Minky_2

I used to be a staff member with a bank and get staff rates for the mortgage which was the BoE base rate. Since the bank sold off my department I'm no longer classed as bank staff and I have been moved onto the customer variable mortgage rate of 7.25% equating to a 2% increase.

I'm now having to look around for a new mortgage and have found a couple of lifetime trackers that look good. The one I fancy going with though has a hefty product fee that has to be paid upfront which I can't really afford and can't be added to the mortgage (not that I would choose that option anyway). But taking this into account alongside the other trackers still works out cheaper over term. My LTV is about 35% .

My question is, if I borrow more than my outstanding mortgage for needed home improvements, are they likely to waive this fee If I ask? I'd be increasing the amount by £10,000 and 5 years and my LTV to about 45%.

I know my old bank employer does but wandered if its the norm if anybody has asked lenders this and the success rate

Cheers

Trying_to_be_good

No. That's why the rate is cheaper, because you are also required to pay the product/arrangement fee.

If you search this thread you'll find a lot of brokers who will be annoyed for you asking the questions, along the lines of 'if you don't want to pay the fee, go fo a different deal with a lower fee, and it'll probably have a higher interest rate'. You will incur their wrath!

Intrigued that you say your old bank employer used to waive fees, though - who was that?

Minky_2

I appreciate that the rate is lower and therefore the arrangement/product fee higher and vice versa but as I was borrowing more than my outstanding mortgage, they would make more money out of me by extending the amount and the term.

The reason I ask is that my best mate who works with me was also on the same staff mortgage deal I was. (LTSB were our employer - mortgages through C&G) When she asked C&G about switching to a new product she asked if they would drop the product fee as it wasn't her fault that she had to change mortgage. Tthey said they couldn't BUT if she wanted to borrow more than her outstanding mortgage, the product/arrangement fee is waived.

homer_j_3

The point is that its priced regardless what you borrow so no that has no bearing on matters.