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arrangement fee

Posted on: 08th Sep, 2008 03:05 pm
i went to the natwest for a 102000 pound mortgage fixed for 5 years
just before the survey was done my buyer pulled out so i rang the natwest and told them to hang on with everything in the mean time i reduced my house price and found another buyer so i needed to borrow another 2000 pounds i looked on the natwest online mortgage calculator and found the interest rate had changed so to borrow 104000 fixed for 5 years was now almost 50 pounds a month cheaper than my first quote
the natwest mortgage adviser told me if i took the new mortgage i would be liabal for 2 mortgage arrangement fees 899 for my first mortgage application and 999 for the mortgage with the new interest rate
i thought the first mortgage offer was just that an offer
i know its a bit long winded but any advice out there please
Welcome wayne,

I suppose you haven't been approved for a loan yet. It's just the preapproval offer that the mortgage company told you about. But I don't understand why there'll be 2 arrangement fees, that too for the first offer. Or maybe they've started processing the first loan and then you wanted to borrow more. So, obviously they may suffered a loss by processing the first and that's the reason they're charging a penalty for it.
Posted on: 08th Sep, 2008 10:32 pm
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