dog Posted April 19, 2008 Share Posted April 19, 2008 First the rates shock, now a fees nightmare The average fee on a three-year fix has nearly doubled in the past year, rising from £578 to £1,132, according to figures from the mortgage website, mform.co.uk. Some of the best deals now have arrangement fees of up to £12,000. Quote Link to comment Share on other sites More sharing options...
Dubai Posted April 20, 2008 Share Posted April 20, 2008 Another Quango, the Office of Fair Trading is keeping remarkably quiet these days.... or has it been binned as "unnecessary" since I left the Country? Quote Link to comment Share on other sites More sharing options...
winkie Posted April 20, 2008 Share Posted April 20, 2008 What are they arranging for that price...these fees have arrived out of nothing, from zero, then £100 then £200 to now £1000 plus. What has caused this price hike? What are these fees we are paying for that were free not so many years before. Why not show the real cost of borrowing in the interest rate....who are they trying to conn? 5% interest rate £10k fee.... Quote Link to comment Share on other sites More sharing options...
ReggiePerrin Posted April 20, 2008 Share Posted April 20, 2008 It's a con. The majority of people taking out a mortgage compare products by only looking at the interest rates. By up'ing the arrangement fee the banks etc can quote a lower interest rate. You would think people would twig this con but they don't?? Quote Link to comment Share on other sites More sharing options...
AteMoose Posted April 20, 2008 Share Posted April 20, 2008 (edited) in the past (before 2000) interest rates were 2->4% above the base rate, were going back to the old days of higher borrowing, you have a choice higher interest rates or higher fees. Today you cant get a mortgage at anywhere near the base rate (without paying large fees) Edited April 20, 2008 by moosetea Quote Link to comment Share on other sites More sharing options...
RichB Posted April 20, 2008 Share Posted April 20, 2008 specially if they switch every couple of years... wait till they can't flip their credit cards either .... that 20k they were bouncing around on 9 months interest free each time.... thats going to sting. Quote Link to comment Share on other sites More sharing options...
AteMoose Posted April 20, 2008 Share Posted April 20, 2008 specially if they switch every couple of years... wait till they can't flip their credit cards either .... that 20k they were bouncing around on 9 months interest free each time.... thats going to sting. The interest collected when this happens will help pay the interest on savings accounts and make up the shortfall in mortgage interest... ;p Quote Link to comment Share on other sites More sharing options...
Leonard Hatred Posted May 1, 2008 Share Posted May 1, 2008 On its financial news stories, the Grauniad has a list of mortgage "best buys", and the "overall" APRs have been steadily creeping up over the last few weeks. They were hovering around 5.8% a while back. Tonight, the three best buys are at 6.3%, 6.6% and 7.2%. (Not a scientific test. If swallowed, seek medical advice.) Quote Link to comment Share on other sites More sharing options...
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