We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Re-Mortgage fees
AVAGO_2
Posts: 3 Newbie
Hi All
Is it common practice amongst mortgage lenders to charge a setting up fee?
WE have just been into our lender to see what else was on offer. Currently we have offset mortgage.The adviser looked and said we could stay with the same type but move to a lower rate of 6.1900% from 6.94%?. we have about £32000 in another account which is used to offset our mortgage which at the old rate saved us about £6 a day. Anyway they have sent the new details of the offer! and want to charge the following £299 to apply for the mortgage and a further £195 for work involved in redeeming the mortgage. Do you think we should complain about the costs as we are already a customer ? it would be intresting to hear other peoples views. btw the bank is the Yorkshire Bank
thanks for looking
AVAGO:rotfl:
Is it common practice amongst mortgage lenders to charge a setting up fee?
WE have just been into our lender to see what else was on offer. Currently we have offset mortgage.The adviser looked and said we could stay with the same type but move to a lower rate of 6.1900% from 6.94%?. we have about £32000 in another account which is used to offset our mortgage which at the old rate saved us about £6 a day. Anyway they have sent the new details of the offer! and want to charge the following £299 to apply for the mortgage and a further £195 for work involved in redeeming the mortgage. Do you think we should complain about the costs as we are already a customer ? it would be intresting to hear other peoples views. btw the bank is the Yorkshire Bank
thanks for looking
AVAGO:rotfl:
0
Comments
-
You usually pay the full arrangement fee for the new product. £299 doesnt sound too bad although I am unsure as to why they want to charge a £195 fee to redeem your mortgage when you are just changing the rate, you arent actually redeeming anything.0
-
If I am already a customer of a restaurant, is right they charge me each time I interact with thier services?
Lenders have to employ staff and armies of lawyers when creating new products and then arranging for clients. That body of cost has to be recovered and a profit earned.0 -
Do you think we should complain about the costs as we are already a customer ?
You know when you go to the supermarket every week to buy new products, do you complain about having to pay for items you buy?
The £299 is the charge of the new product. The £195 is the fees involved in closing the old mortgage. However, you dont normally pay a fee when you switch deals with the same lender. Its only when you remortgage that you do.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Dunstohn Ive always paid fees to switch to a new product within the same lender.
I say to all these people who question fees; If your employer does something substantialy 'extra', would you expect your employer not to charge thier customers for this additional service?
Can I ring up my childrens school teacher and demand they come to my house after work and do an extra 30 minutes teaching FOR FREE?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.9K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.2K Spending & Discounts
- 247K Work, Benefits & Business
- 603.6K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards