Mortgage Trust

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In 2006 I took out a mortgage with Mortgage Trust in order to purchase a buy-to-let property. I paid an arrangement fee of 1147.50 added to the mortgage payments. The terms were 4.55% until 31.01.09 'thereafter the interest charged will be based on the Company's 3-month LIBOR + 1.75% (subject to review)'

However when the mortgage term ended in January 2009 the mortgage did not revert to the terms quoted. Instead Mortgage Trust offered only one product only available to their existing clients. This was a transfer to a 2 year fixed at 4.35%. Mortgage Trust charged an arrangement fee of 1154.88 plus an admin fee of 95.

I am querying whether this is allowable under financial regulations. Surely an arrangement fee cannot be charged twice? Certainly it has not occurred as far as I know when my other mortgages have reverted. In effect, this means that my mortgage has gone up twice and the Mortgage Trust is benefiting hugely from a long-term interest re-payment twice over.

Has anyone else found themselves in a similar position with this (or with another) mortgage provider?

09/11/2009 00:00

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