reclaiming fees form mortgage company

[nw28840]

I just received a call from a company who for a fee will chase up excess fees interest i paid when i took out my mortgage.

ie. the arrangement fee of +- £1200 was added to the cost of my mortgage meaning that 25 years of interest is charged on that amount -> which is wrong !

Now the Company want a fee of £300 + VAT up front and then 25% of the outcome + VAT.


How real is this ? or is this a scam ?

I remortgaged after 3 years and paid another 'arrangement fee'. this comapny have advised me that my claim may possibly be £20,000 +. Is there a reason why i wouldn't just go straight to my mortgage lender and chase this up ?

[grahamr88]

I believe that the adding of fees to the mortgage is fairly common if you're unable to pay them up front, and may often be the default choice. So unfortunately if you've been borrowing that money for 25 years; you can expect to pay 25 years of interest on it, and I'd have thought your chances of reclaiming it are low. You might have more luck with one of the companies who constantly text me reminding me of the £3750 I can claim as compensation for my accident (which must have been serious, since I can't even remember having it!)

[Soovy]

Give them £300 and you'll never see them again.




Do you believe that the interest on £1200 over 25 years is twenty grand.

FFS!

[nw28840]

Graham - I actually was never asked if i wanted to pay the fees , they just added the fees to the outstanding mortgage.

Soovy - Honest i'm not that daft, I just wondered how on earth these companies can get away with it seeing as they are Government regulated !

[DHE]

What is there to get away with? They state their fees upfront, you decide if you want to go ahead and use them. If you think their is an issue with the way the fee was handled, speak to your mortgage lender or the broker/financial advisor who arrange the mortgage. That way it won't cost you anything.

[hairykrishna]

I don't know if it's possible to reclaim the interest. If it is then presumably it's like reclaiming loan PPI - only a total muppet would pay someone to do it when they could print off a form letter and send it themselves.

[Maryben]

So do you wish you had parted with £1200 'up front' when you arranged your mortgage rather than this amount being added to the mortgage and increasing your payments by an extra £5 or £6 each month? (equals £1800 maximum over the next 25 years).
Most lenders offer schemes with no fees and lower rates with the payment of a fee.

[nw28840]

Not at all , i was happy to have this fee added to my mortgage. At the time i worked out the cost to me over 25 years , hence why i was astounded at the figures reported to me over the phone - i guess it grabs your attention when they mention £20,000 plus of course !

I work from home get all kinds of 'cold calls' during the day , I've just never heard of this angle before and couldn't find anything on PH forum about this sort of thing.

[nw28840]

here's the company :

http://www.chargeright.co.uk/