Mortgage Arrangements Fees - Negotiable - What are they FOR exactly ?

[Oblomov]

Trying to sort out new mortgage. Old deal came to and end , with Directline. They have quoted us £499 to set up a new deal. Bit of a cheek, seeing as we are existing customers. I appreciate all compnaies have a set up fee - one way that they make their money. But, £499 / £ 10 per hpour ( reasonable rate p/h) = 49 hours - it takes someone a whole week to set one up ?
Would they tell me to take a hike if I asked them to justify what it was for ?
Some compnaies are asking for £1500. I know they all take in one hand , take in another , but is it worth negotiating, or do I just have to shut up and swallow ?

And wouldn't think they're negotiable (barstards) but teh better teh rate, the higher teh fee. £499 isn't too bad atm - try Nationwide or Britannia - usually more reasonable.

If you are coming to the end of a fixed deal atm lots of the banks have increased their arrangement fees.It is not just admin it is basically paying to fix it again.Not much you can do as they aren't usually negotiable.

I was afraid that you were going to say that. I hoped I may be able to barter them down, atleast by a bit. Thanks anyway.

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oblomov I would try and threaten to leave if they don't drop the fee, I mean what have you got to lose??

I did this with first direct when I switched to a fixed rate mortgage, I offered to withdraw all my accounts Strangely it took less than 5 mins for them to agree.

I'd still call a broker and shop around, whats the point of paying more than you need to. Remortgaging is very easy these days and the legal and survey fees are free, you probably will pay an arrangement fee as all the lenders charge that these days though some deals are out there, eg Woolwich 5.79% tracker no fees. But generally fixed rates will have a fee.