CML Defends Mortgage Arrangement Fees
June 25th, 2008 by 
Guy
The Council of Mortgage Lenders has defended mortgage lenders against claims by chancellor Alistair Darling that mortgage lenders are taking advantage of home owners by charging them excessive mortgage arrangement fees.
The chancellor attacked the mortgage lenders that charge massive mortgage arrangement fees anything up to £2,500.Darling says: “Everyone accepts there are costs that have to be met. But I think we have to make sure people are treated fairly and not taken advantage of through no fault of their own.”
But the CML says there are still lots of fees free mortgage deals to be had.
A statement by the CML says: “Different customers may have different preferences, for example, someone with a large mortgage may benefit from a higher upfront fee and lower monthly costs. What it is important to understand is the overall cost of the mortgage, which the key facts document provides.
“Customers continue to benefit from a good choice of mortgages, including hundreds of fees free mortgage deals, even in the current difficult conditions in the mortgage market. Constraining the market to offer products priced in only one way would be detrimental to customer choice.”
The CML has been debating with the chancellor regarding the problems faced by those coming off their present mortgage deals and onto higher payments, but has not addressed the issue of arrangement fees specifically.
The war of words between Darling and the CML follows analysis from Mform.co.uk yesterday revealing lenders are using fees to push up profit margins, with valuation fees ranging from zero to £400 for the same property.
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June 25th, 2008 at 3:59 pm
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