I realise that, for particularly high mortgage amounts, the client may be better off, but am finding that on remortgages – particularly those that are lower than around £150,000-£200,000 – the client is better off with a higher rate and lower fees.
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How can the lenders justify these fees? I think there should be a cap set on them and base it on purely a per centage of the loan, rather than the fixed fees, possibly with a maximum set on it as well.
It is just another thing I have to do when justifying to a client that they are better off with a higher rate and lower fee than the opposite, when I recommend a particular product, and the first thing I get asked is ‘why haven’t you gone with the rate from so-and-so that was quoted in the Sunday Mail best buy tables?’
Not that I am against justifying my recommendations – I just think lenders should give more clarification in justifying that the lower rate may only be applicable on a loan over a certain amount.
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Also lately there has been a lot written about lenders having to cut their procuration fees as brokers are ‘getting too much’. I don’t see anything about lenders having to cut their arrangement fees because they feel they are getting too much. I can justify my work and time for the procuration fee that I receive; I would like to see this justification from the lenders on their arrangement fees.
Nigel Pamment
Inspirational Financial Management
