Booking Fees.

Nicky-1

I've also got a similar querie; I am in the process of renewing my fixed term rate with the Abbey who's interest rates have come down slightly, but they are still above other banks rates, e.g. Halifax. (I understand it is a competive market). The reason why I havn't switched lenders is because I have a 75% mortgage, of which the second 25% is a secured (frozen) loan. Due to this second loan, the solicitors fees are very high if I chosse to change lenders. However with regards to staying with the Abbey, their arrangement fee has increased from £499 to £699 in just a week! I just want to check that these fees are justifiable and if there is any way of persuing this further???

_Andy_

Yes they are justifiable and no there isn't.

dunstonh

They dont have to be justifiable anyway but as it happens they are.

jamesd

Nicky-1, fees for arranging new mortgages are entirely permissible. If you want to avoid the fee you have the option of staying with the original mortgage that you took out with them.

Now is not the time to expect great deals from lenders. It's a time when they are exploiting the market power they have over mortgage buyers because limited funds availability has reduced competition.

mitchaa

O.P.....You are buying an interest rate, it's as simple as that.

If you dont want that particular mortgage with its booking fee then you will pay a higher rate with a smaller amount booking fee.

What you need to do is work it out. A 5.79% rate may not be better than a 6% rate when these fees are taken into account.

AliceBanned

I think all scutter was looking for was transparency - it is confusing when you are new to all this. The first reply gave you all you needed to know - the fee may sound a lot but it gives you the security of the fixed rate, which is often worth more than being on a higher rate in the long term, so it may be saving you money to pay the £995; just depends what other deal you can get.