Scotland-based broker firm MSL Partnership said it had not been made aware that Northern Rock had introduced a £95 fee, payable by clients who are releasing equity from their property, until after it had sent the mortgage application off. It said the lender was not being transparent with its fees.
Lara Mackie, partner at MSL Partnership, said: “I am absolutely amazed at this new hidden charge. Not only does Northern Rock charge Scottish clients £250 because the adviser instructs the survey and transcript, £595 arrangement fee for their ‘work’ and £40 because the adviser arranged different buildings and contents insurance, it is now charging this £95 fee. I have not come across this type of lender charge before.”
Mackie explained when she confronted Northern Rock she was told that as the lender had a monopoly of the Together 125 per cent product it could show these fees as part of the administration of this type of mortgage. But she added: “I destroyed their theory when I pointed out my client was borrowing below 75 per cent LTV on a standard deal not the Together mortgage.”
Tony Armstrong, spokesman for Northern Rock, said: “Information about this fee was available to introducers from all of the usual sources. I cannot rationalise the comments attributed to our member of staff concerning the Together product. This doesn’t conform to staff training guidelines and we will reinforce this point in training.”
