Remortgage fees

tiilylilly

My fixed rate mortgage came to an end in January. I finally have a new mortgage offer (Hurrah). I also have a secured loan. I have had a letter off the company telling me that a Deed of Postponement is needed. The company wants payslips for the last sixty days, employment details (which they have) and a cheque for £295.00. The solicitors also want £117.00. This is on top of the quoted arrangement fees of £890.00. I feel this is a rip off, is there anything I can do to protest or am going to have to accept and pay up.

Thanks

_Andy_

Why is it a rip off? the £295 is (presumably) the fee for the DOP. Also solicitors need paying so in answer to your question, no there isn't anything you can I'm afraid.

minimike2

£295 is excessive for a DOP. Have you checked the tarrif of charges from the secured loan company you were given when you took the loan out. (Who is it).


IF the £295 is higher than in the original charge tarriff :-

I would ring them and ask them to justify the level of the fee. IMO a DOP should be no more than £150. You should pay it now to avoid slowing down the remortgage, but see if you can get a partial refund. Interesting about the solicitors too. Is it a free solicitor appointed by the lender? I assume so, as the solicitor I use doesnt take any extra money when a DOP is needed.

dunstonh

This is on top of the quoted arrangement fees of £890.00. I feel this is a rip off, is there anything I can do to protest or am going to have to accept and pay up.

You dont have to pay any of these fees. You can stay on the standard variable rate instead. No-one is forcing you to buy a new product and like any new product you pay for it.

If the £890 is too high then you can look for fixed rates with lower fees but higher interest rate.

sarkin

What is the rate on the secured loan, have you considered consolidating the lot and making an overpayment.

_Andy_

I'm guessing the DOP is for Swift, fairly sure they charge £295

tiilylilly

The company is Picture. I don't object to the solicitors fees for the remortgage. I object to the amount of money for the DOP. The solicitor is appointed by the lender who is first direct.

_Andy_

The DOP would be in Pictures's tariff/charges. Having said that I've never done a DOP case where Picture is involved.
I doubt there's much that can be done about it. Hopefully you spoke to Picture before the application to check informally whether they'd be likely to accept the DOP?

_Andy_

Website

http://www.picturetheloan.co.uk/existing-customer/faqs

doesn't state an amount, just "Please be aware that there is a fee payable for this service."

tiilylilly

I have just been to the picture website (Thanks Andy) and found the following.

This fee maintains your Picture loan as the second charge on your property should anything change regarding the first charge. For example, if you change your mortgage provider. This also includes the cost of a valuation.
Transfer fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . £295^

I have already had a valuation done so I will call them tomorrow and ask for them to recalcualte the charge.

Ian_Griffiths_Halifax

tiilylilly wrote: »

This fee maintains your Picture loan as the second charge on your property should anything change regarding the first charge. For example, if you change your mortgage provider. This also includes the cost of a valuation.
Transfer fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . £295^

I have already had a valuation done so I will call them tomorrow and ask for them to recalcualte the charge.

But the valuation wasn't carried out for Picture. They may need a valuation to be carried out by somebody who they appoint, but let them know who did the valuation and they may agree to a re-type by the valuer, onto their own valuation report document if he is on their panal of valuers.

Having said that, I have had clients who have moved house and ported all or part of a Picture Loan to the new property and I am certain that they didn't need a new valuation and that was on a completely different property that they had never seen.