Arrengement fee to stay with same lender? Seems bonkers to me.......

[DrNortherner]

Our fixed mortgage rate expires in Sept, just negotiated a new (albeit much higher!) for SEptember. Looked at the market and teh best rate is being offerred by our current lender.

They rea charging us £1500 for the privelage of staying with them and paying them more money every month.

Madness. Grr.

You could always try and negotiate to pay that up front, and then once you're all renegotiated etc then perhaps the lender could pay it back? Our mortgage is with the Coventry Building Society and that's what they do, so it might be worth asking?

That seems really high. It used to cost us about £250 'arrangement fee' each renewal.
What do they call the charge?
They haven't assumed you're redeeming your current arrangement 2 months early and are charging you a redemption fee by mistake are they?
I think I'd ask for a breakdown of that cost.

We have asked for a beakdown of costs - tey say it is to secure a lower rate of interest as their published deal is 7.9, we have secured 5.69, despite being on 4.29 atm.

Check out the moneysavingexpert.com website under "mortgage fees" as I'm pretty sure something came into force earlier this year about arrangement fees/exit fees. Don't think they are allowed to charge you these extortionate amounts any more! It's definitely worth querying with your lender if you have this information - I'm sure they will back down. Hope this helps.

Agree DrNortherner it is a bloody con. It misrepresents the market too as you do not have a real indication of what a mortgage costs, and it makes it harder to judge what a good deal is. I wish the FSA would get invloved in this. Mortgages were meant to be getting simpler not more complicated.

Agree with Blackberry - I thought something had changed in the law too. Can't remember any more but would be worth looking into.

Seem to remember they discussed it on GMTV. Maybe check their website??

I argued with my last provider recently about this and they waived the fee. Then I left them anyway as I found a better deal. 5% for 10 years fixed. They were very pissed off.