Wednesday, 16 September 2009


OK, I am not going to be posting about the robber barons ie: How exactly is a best rate 2.49% above base?

But there is one thing I am amazed that is allowed to continue - the reserve fee.

How on Earth is it legal to charge this? Between £800 to £1,500 on top of the money a bank or building society makes from you anyway.

Now most people can't afford to pay the reserve fee up front so the barons helpfully drop in onto your mortgage and charge you interest on it. For a 20 year mortgage that almost the equivalent of an extra year of payment!

I can almost understand if you are moving mortgages - admin etc - but when you are staying with your bank? All they are trying to do is sell you products on top of what you already own. The mortgage itself is five minutes of button pressing.

It is a con and should be made illegal

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