SunnySideUp

.
.
.
.
.
.
£7,699
.
.
.
HSBC recently imposed a stonking £7,699 arrangement fee for the lowest rate on the maximum £250,000 loan in its "mortgage matcher" range. That's nearly £3,850 for each year of the two-year fix – or £321 a month.

What?? To give them business?? Has the world gone stark staring bonkers??

MJW

Yep its getting pretty grim. I even stumped up an early redemption fee for a better mortgage a couple of months back I figured it'd head this way !!

Removed.

**** ME! I know it was 13 years ago, but mine was £500, and they waived it as we were 1st time buyers. TSB, before the merger with LLoyds.

stilover

My redemption figure was only £250.

MikeCardiff

iTrader: (2)

Shows how things are changing - took out my 5 year fix 18 months ago - was at 5.7% with no arrangement fee at all ( with Monmouthshire BS ).

This is something people miss when they are happy about house prices going down, mortgage rates are going up, lenders are sticking on great big arrangement fees to make the interest rate look more attractive and inisiting on bigger and bigger deposits, cancelling out a lot of the benefits.

Plus after the Northern Rock situation lenders seem a bit more loathe to do the 100% ( or even more than 100% ) high salary multiple deals they were all offering not so long ago - which is one of things that kept prices rising so much in the first place.

PeteBrant

A mate of mine went to stick £7K additional borrowing on his mortgage the other week...

Until they told him there would be a £3,500 arrangement fee.

Tidgy

im looking at buying, and at the min the market is dropping like a stone (despite what the government claim) but ion the same hand getting a morgage is a pain in the ****.

shall wait and see me thinks

boxst

I don't understand that. Unless you have an extremely high loan-to-value or you have only been with them a couple of months then increasing an existing mortgage is probably one of the safest things they can do?

Banks DO need people to borrow money so these fees will just kill their trade.

Steve

PeteBrant

Indeed - THe person in question was a 60% LTV, and asking to borrow an extra £7K on a property work around £350K

He almost choked when they said "That s absolutely no problem, you can borrow at your exisitng interest rate, and the arrangement fee will be £3,500.

"So" he said, "The interest rate is actually arround 55%"

"Yes" the assistant said, all smiley.

Leslie

I bet you wish it was 1994 again then. Those figures are shameful I reckon.

Les