RSS Feed
DIGG this story
Chancellor warns banks on loan arrangement fees
01/07/2008
The Chancellor, Alistair Darling, has warned banks and other mortgage lenders that they should stop taking advantage of borrowers by insisting on large arrangement fees.
Mr Darling threatened action by the FSA if the banks did not heed his request to reduce the size of their arrangement fees that are being foisted on both home-buyers, remortgagers and to those people changing from one mortgage company to another.
Data has just been released from the British Bankers’ Association showing that total mortgage approvals in May 2008 fell at the fastest rate for over ten years.
The Chancellor said, “We have met the Council of Mortgage Lenders to try to reach an agreement to ensure that people are treated fairly, but if that isn’t happening I will ask the FSA to pursue the matter.”
There have been many instances of banks charging fees of up to £3000 to allow homebuyers to access some of the more competitive mortgage deals.
While Mr Darling did not go so far as to state an upper cap on arrangement fees, he said that homebuyers, and especially those moving from fixed rates, should be treated fairly.
Mr Darling threatened action by the FSA if the banks did not heed his request to reduce the size of their arrangement fees that are being foisted on both home-buyers, remortgagers and to those people changing from one mortgage company to another.
Data has just been released from the British Bankers’ Association showing that total mortgage approvals in May 2008 fell at the fastest rate for over ten years.
The Chancellor said, “We have met the Council of Mortgage Lenders to try to reach an agreement to ensure that people are treated fairly, but if that isn’t happening I will ask the FSA to pursue the matter.”
There have been many instances of banks charging fees of up to £3000 to allow homebuyers to access some of the more competitive mortgage deals.
While Mr Darling did not go so far as to state an upper cap on arrangement fees, he said that homebuyers, and especially those moving from fixed rates, should be treated fairly.