Simon Dewsberry Posted July 10, 2007 Report Share Posted July 10, 2007 Hooray !!!!!!!!!!!!! I think Alistair Darling must have read my recent posts with regard to - Lenders fees on short term deals and the effects on the market as a whole ! He is today calling for lower set up fees on longer term fixed rates: even upto 25 years !!!! I think this may be a bit unrealistic (35 yrs) but the sentiment is good .........and recognises that this is having an inpact on the stability of the short and long term prices in "our " market ........... He quotes the USA as having better structured long term finance terms ....... Bring it on .................and Have a nice day !!!!!!!!!!!!!!! Simon Link to comment Share on other sites More sharing options...
Matthew Posted July 10, 2007 Report Share Posted July 10, 2007 I think the fees have been getting ridiculous and I was wondering just how high these could go, but I'm not sure if I am totally against these. It's a difficult one for me this one. I recently paid over £1.5K as an arrangement fee for a 3 year fix......But over the term with the lower interest rate it was better than anything else on offer, including the interest I would pay on it. If over the term it is the cheapest including all costs, does it matter when or how it is paid? Should we not just go for the cheapest option? The problem comes only if you ignore that you are paying this. And I do think that some people will kid themselves that they are making money, when in fact they are not, especially for short terms of 2 years or less. Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted July 10, 2007 Author Report Share Posted July 10, 2007 Exactly my point Matt - i got quoted £4600 set up on a 190K mort to fix for 3 years- now as the differential between the rising int rate and accpetable Monthly payment grow we will be looknig at fees of 3 4 5 %>.................???/ This will give us fees of around £10k on a 200k mort -Added to the loan ..of course ...and wiping out equity which you now want to give to the HMRC !!!!(60%) Not just once but every couple of years as we refinance................ Now, how is that going to sit with your figs when you will have to do it again in 2/3 years ? OR you can pay std variable ----if your figs allow it ...................now take away tax relief on the payment ................BANG! Simon www.dolphinshowers.co.uk - take a cold one !!!! Link to comment Share on other sites More sharing options...
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