FOAK: mortgage advice

Excellent. Simply repeat what you've already said. Maybe if you repeat it
again, I might buy into it.

You have made a number of assumptions about what you think regulation is
about. Others have put forwarda different opinion. It's not my fault you
can't understand that there may be more than one way to look at it.
Regulation draws a difficult line bvetween ensuring business is not stifled
and that there is competition in an efficient marketplace but at the same
time ensuring there is fair dealing.

Regarding the specific example of arrangement fees, you seem to consider
that an issue whereas others don't. Now, if you'd picked the example where
lenders force consumers to pay surveyors fees of say £500, but they survey
only costs £150, then that's a different matter. I see the arrangement fee
purely as profit for the lender and there's no attempt to dress it up as
anything other than that.

It's only your opinion. Not a statement of fact.

 

Maybe that's one thing she got right then. The kind of sums involved
aren't any more complex than those taught to every single GCSE maths
student, so it's not as though people aren't given the knowledge or that
finding a mortgage is the privilege of some kind of secret cabal.

Or do you think we should be promoting a level of national stupidity,
and building our systems and laws accordingly?

 

I dunno, but you could get the impression that this is already the
case...

 

Oh yes there has. And it remains.

The simple act of arranging a mortgage costs the lender money. That
cost can be recouped by charging an arrangement fee or it can be added
on to the repayments - i.e. by increasing the interest rate.To
prohibit arrangement fees would thus mean that those who change
lenders rarely would be subsidising those who change lenders more
often.

I agree with your plea for transparency. I agree with publicising
outrageous arrangement fees. But to ban them altogether - that merely
replaces one problem witha worse one.

 

Not at all. I simply said I disagree. You seem unable to grasp this.

I sense you are personally agrieved that some of the cheapest deals on the
market right now are effectively unavailable to you because you want to
mortgage only a small amount. if you think banning arrangement fees will
promote more competition, then I suspect you're wrong. I'm all for
transparency but these fees are clearly signposted so i don't have a
problem. Nor I suspect will the regulator - well certainly not when you can
borrow more than .5% below the base rate.

What next - do you want everyone to have exactly the same insurance terms
for a true like for like comparison. Should the regulator step in and do
something about exorbitant excess chatrges that allow some insurers to get
great headline prices? Or what about the DFS/MFI etc sales? Should the
ASA/OFT or whoever step to prevent some stupid people getting totally ripped
off by buying one of their sofas/kitchens for the three weeks a year they
don't have a sale. Suggest you consult with Brother Sweller.

Why not. Is there some golden rule I missed that says we all have to be
treated the same?

It's not harder imo to compare. This is where we disagree. Most people will
be able to work it out.

 

I think it's not so much whether or not the charge is representative
but whether or not it is transparent. The survey fee isn't transparent
(the lenders don't tell you that they pay surveyors perhaps a third of
what they charge you) whereas the arrangement fee is.

 

An ex-pat's wet dream then

.... since ICICI bank have just raised their interest rate on savings to
5.3%

 

This is the same ICICI bank that have appalling customer service, make
it nigh-on impossible to open an account, and have a borderline junk
stock S&P credit rating?

 

Not really. When I called Nationwide and said I wanted a 2 year fix, chap
did the numbers for me on all three of their 2 yr fixed rate deals (all with
different arrangement fees) and told me which was the cheapest for my
circmstances over the 2 years. So no hidden cost, no surprise sting in the
tail, which you seem to imply.


I am personally aggrieved that my

I suspect that has more to do with your lender. Nationwide for example,
don't do this and one fee allows you to "arrange" more than one product.

Yes it is. Remember, we're talking the average joe here who according to
you, can only barely read and write. How will they ever distinguish between
all the various permutations and combinations of insurance cover available?

Since when have you been allowed to choose the compulsory excess? Most
insurers now have both compulsory and voluntary portions.

Ah, I see. Your criteria have now changed from people's champion to "as long
as everyone is included", right?

No, not what i said. I don't think it's harder to compare, you do.

 

Why? Over here I'm paying something like 2.5% on our Swiss Franc
mortgage. With rates as high as they seem in the UK I'm surprised that
more people don't think about taking foreign currency mortgages. That
sort of difference must even negate the currency transfer charges, I'd
have thought.

I still have some money in a UK deposit account, earning far more than
my mortgage is charging.

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Britannia are very good. And committed to remaining a mutual rather
than converting into a bank (as are Nationwide).

Guess which two organisations have most of our business?

Britannia and Nationwide.

Phil

 

Geek! Or even, "PM!"

 

My 5 year fixed rate mortgage with C&G is up for renewal at the end of the

No experience (other than their inability to generate Money compatible
files)

I found it easy

Still - bound by the rules

I notice that Citibank now have a comparable rate

 

And from the MartinsMoneysavingTips website ...


ICICI* is back to the number one spot, paying a huge 5.45% and you only
need £1 to open it and it's a clean account with no tricks

what's your problem with their stock profile ?

 

http://www2.standardandpoors.com/se...leTemplate&c=sp_article&cid=1145744586314&b=5

Following from

http://www.hinduonnet.com/2001/09/20/stories/06200005.htm

Evidently they're using the interest rate to try and build an asset
base. Also doesn't take long to find plenty of horror stories regarding
their customer service.

 

I shall beware

AIUI they are legally bound to paying 100% 0f the first 2k and 98% of
30k, so is it not a worthwhile gamble to take advantage of the interest
rate, even if they are just trying to up the customer base?

 

Using the patented Mavis Beacon "Hunt&Peck" Technique, raden

How soon they forget. BCCI, anyone?

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Business acquaintance had a BCCI savings account and credit card. From
memory he lost a significant part of his savings and still had to pay
his CC. He was mightily pissed off about it and did nothing but moan
about it.

Not a patch on what I'd have done though to be fair.

 

Not forgotten

I also know loads of expats who lost 10's of thousands of dollars when a
bank in Indonesia (offering over 20% interest on dollar accounts) went
tits up

I might have to "limit my exposure" a bit there

 

But of course all lenders are required to provide a Key Facts
Illustration for any[1] mortgage-type loan they're trying to flog, This
quote is specifically for your mortgage and so you can get a quote from
the 23 places you're thinking of going and then compare them easily,
providing you can read. These documents clearly show the fees payable.

Granted, this isn't much use if you're only interested in comparing
them for the period of the mortgage 'feature' (fixed rate period,
capped... whatever) and then switching to another. (Except that you can
use the x payments at y part to make the calcs easier).



[1] Yes, there are exceptions for non-regulated lending etc.