The comments follow a statement from MoneyExpert.com, which asserted that consumers could negotiate a reduction in their fees if they were ‘vigilant’ about what they were being charged for administrative tasks. Sean Gardner, chief executive of MoneyExpert.com, said: “Lenders want your business, so remember you don’t have to accept their terms.”
However, Colin Snowdon, chief executive of Freedom Lending, said: “Lenders have put their mortgages through a product model and seen what acceptable returns they can get. Customers can’t individually negotiate. Creating an expectation they can is not practical and people will be disappointed.”
Sally Lauder, press manager for Alliance & Leicester, commented that the lender would not expect customers to challenge fees if they didn’t feel they were appropriate.
She explained: “Fees and charges are set at a level that we think is fair and we keep customers well informed of what they are. Fees are there for a reason and to fund a job. Either people are prepared to pay or not. We don’t just make them up.”
Bernard Clarke, communications manager for the Council of Mortgage Lenders, added: “Customers can challenge a fee, but it’s wrong to expect flexibility because lenders design products carefully. Costs and fees are balanced with the headline rate being offered.”
James Cotton, mortgage specialist at London & Country, said: “You cannot negotiate with mortgage lenders. The key is to compare deals. Lenders offer a range of rates. Negotiating has never been a regular practice and depends on individual circumstances.”
