View more on these topics

Abbey blasted over £150 booking fee

John Charcol has hit out at Abbey for introducing a non-refundable booking fee of £150 on its mortgage range and warned that more lenders may follow.

It says that up to now, the only major player to use such a fee was Lloyds TSB, with a £99 booking fee.

A John Charcol spokesman says: “This is just another step in the complete about-turn in the mortgage market from just a year ago. Consumers have been king for many years now, with lenders fighting for their business, often at loss-leading rates, but that has been consigned to history and these booking fees are another stark reminder of that.”

He points out there are many things that can happen during a mortgage application that may result in a borrower being unable to compete, a great deal of which a lender can be accountable for.

“Traditionally, this has not cost borrowers anything other than wasted time and maybe some legal fees. However, if they do not complete on a mortgage with an up-front fee, it will cost them cash,” the spokesman says.

But Abbey has dismissed the criticism, saying that the fee is refundable if the application is declined.

An Abbey spokesman says: “Only a small proportion of the fee is required up front. This up-front payment has become more necessary in the current economic climate and guarantees the rate for the customer.”

Recommended

Taking stock

I am due to receive about 180,000 worth of company shares from a share scheme in place with my employer. I am aged 49 and I have the option of using these shares to make a contribution to my company’s pension scheme, which is a self-invested personal pension. Is this a good route to take?

BSA to widen mortgage market role

The Building Societies Associa-tion is to recruit seven more staff to get building societies’ views of the mortgage market across more effectively.

Frexit & contagion risk in Europe

Many commentators have suggested the UK’s exit from the European Union will trigger a domino effect, leading to its eventual break-up. Neptune Head of European Equities Rob Burnett discusses the likelihood of this happening. Click here to read more Important informationInvestment risks Neptune funds may have a high historic volatility rating and past performance is […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com