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Is a £999 Fee for a Mortgage Offer normal practice?

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Comments

  • MarkyMarkD
    MarkyMarkD Posts: 9,913 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Indeed. If, Mandark, you opted for the £999 fee on a £40,000 mortgage you certainly made the wrong choice.
  • Anne3333
    Anne3333 Posts: 254 Forumite
    I am shocked, since when have lenders started non-refundable application fees? Which companies do it and how is that 'Treating Customers Fairly'? The FSA should come down on them like a ton of bricks!
  • dunstonh
    dunstonh Posts: 121,226 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I am shocked, since when have lenders started non-refundable application fees?

    Around 1995 I first recall seeing them.
    and how is that 'Treating Customers Fairly'? The FSA should come down on them like a ton of bricks!

    The FSA have been quite vocal on the subject of fees and have stated that it is fair for companies to be paid for work done even if the mortgage doesnt succeed.

    You have to remember that fixed rate deal financing isnt as easy now and someone pulling out can cost the lender. So, its only fair the cost is passed on.
    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.
  • neil9313
    neil9313 Posts: 696 Forumite
    turbobob wrote: »
    It could be worse. I read the other day arrangement fees of up to £40000 were being charged for very large mortgages :eek: http://www.ft.com/cms/s/0/31e40ee4-2e7b-11dd-ab55-000077b07658.html


    what aload of rubbish! or did you press too many noughts? :rolleyes:
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    neil9313 wrote: »
    what aload of rubbish! or did you press too many noughts? :rolleyes:

    In what way is it a 'load of rubbish'?
    Plenty of mortgages charge a percentage of the loan amount as an arrangement fee.
  • Mandark
    Mandark Posts: 181 Forumite
    MarkyMarkD wrote: »
    Indeed. If, Mandark, you opted for the £999 fee on a £40,000 mortgage you certainly made the wrong choice.
    Yes I probably did. That's what happens when you make the mistake of trying to pick a rate over the phone whilst scribbling down numbers!!! :o The Halifax guy said he couldn't advise on the best choice. He could only tell me what was on offer.

    Oh well what's done is done and I'll be more careful next time.:)
    Prof planning and public rights of way person. Studies all things tech!
  • MarkyMarkD
    MarkyMarkD Posts: 9,913 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Indeed. No need to complete the deal in the one phone call. Ask for them to send you written details of the deals you are interested in, and then choose when you get those details. Or write them down. Or get them off their website and do your own calculations. :)
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