New Product Booking Fee, same bank

[coget]

Hi,

I recentally changed from one mortgage to a new one with the SAME bank when the 2 year fixed rate ran out. They charged �500 as it was a 'New Product' when all they did was a bit a paper work and change my monthly payment amout. Do you think it is possible to claim for excessive charging?

[bednobs]

not sure, but surely they told you in the paperwork about it?

[alijangra]

You must have known about this and had the opportunity to shop around, so for that reason I dont think you can do anything.

[chitchat]

This is standard practice for all lenders in the UK to charge a fee for switching to a new product. You should have been told of the charge before you signed the new deal. If you didnt want to pay it then then you shouldnt have signed. Its the same thing as going into a shop and buying something - you are (usually) aware of the price before you buy something. You dont have to buy/accept it.

If you have changed your mind - and remember that some lenders can charge �1500 to change to a new product - tell your lender and they may consider putting you onto another possibly higher rate, without charge, but you run the risk of an early repayment charge. After all you are trying to break the agreement.

When is this culture of trying to claim compensation for everything going to stop?

[oldhenry]

Caveat emptor- especially regarding any financial services dealing. Why whinge now?, it too late, That someone's nice commission

[johnny37]

Check your paperwork carefully. If there is no mention of an arrangement fee I think you may have grounds for complaint. If the first you knew about it was when you came to sign the contract you could have complained at that stage and shopped arounf for a cheaper product in which case they may have tried to hit you with a redemption fee. I believe redemption fees have been deemed excessive by the Financial Services Authority