YBS application fee - is this right?

Vicki_Y

I wonder if any of you can help.

My fixed rate with YBS is coming to an end in October. They've offered me another product (3.99% until Oct 06 followed by 4.69% to Oct 07) which I want to take. The only thing is, there is an application fee of £690 (which can be added to the mortgage).

Not all of their offers incur an application fee, but this one does.

Is this normal? Is there a way I can get out of it?

Thanks

Vicki Y

pozalina

Vicki_Y wrote:

I wonder if any of you can help.

My fixed rate with YBS is coming to an end in October. They've offered me another product (3.99% until Oct 06 followed by 4.69% to Oct 07) which I want to take. The only thing is, there is an application fee of £690 (which can be added to the mortgage).

Not all of their offers incur an application fee, but this one does.

Is this normal? Is there a way I can get out of it?

Thanks

Vicki Y

Hi Vicky,

I take it you have been offered another fixed rate deal. There is always a charge when you fix the rate, but £690 sounds like a lot. I recently paid £399 to HSBC to fix my rate, but I am sure you can get them even cheaper.

Some wiser folk that me will no doubt be along later to advise you - good luck!

p

KTF

I am assuming its this deal here:

http://www.ybs.co.uk/mortgages/current_products/products/excl_stepped_transfer.jsp

Be aware that you will be tied in until Oct 07 so the payments will be higher for the final year.

To answer your question. Most fixed rate products will have a fee attached to them as they will say that it is a means of guaranteeing the low rate.

As that rate (certianly for the first 2 years) is lower than most they are clawing some of that back with a higher than average up front fee.

As you say, some of their other products do not have a fee but then the rate is not as favourable.

Its normal practice and I am not aware of a way of getting out of it. I would also suggest looking around at other providers as well. Even though the rate might be higher, the amount you pay over the term might be less.

<disclaimer>
I am not an expert.
</disclaimer>

payless

would need to considerr if savings on the lower interest rate are even to justify the fee compared with other (higher rate / lower fee) products they have Or against the market