There was a time when building societies were mutual organisations, dedicated to helping people become home owners at the lowest possible price.
When mortgages were in short supply, your loyalty as a saver would be rewarded with a loan. Charges would be so small they were hardly noticed.
How times change. Today, most building societies are banks, part of vast multi-national organisations whose only motivation is the bottom line.
Lenders fall over themselves to pose as friendly, helpful, low-cost organisations. The truth is very different.
Some of these banks have cheerfully closed dozens of branches and transferred call centres to India. If they treat their own employees so ruthlessly, why should they treat their customers any better?
Sure enough, a report today reveals an outrageous rise in so-called “arrangement fees” which have soared over the past couple of years by between 99 per cent and 678 per cent.
While customers naturally look at the interest rates when comparing mortgage deals, how many bother to look at the small print?
In some cases, it would be cheaper to opt for a higher interest rate than take on an arrangement fee of up to £3,000.
There was a time when people aspiring to own their own homes were encouraged by building societies and governments alike.
Today, they are hammered with arrangement fees and hammered again by a Government which demands vast amounts of stamp duty on even modest homes.
No wonder we are becoming such a cynical nation. If home ownership is such a good thing, why are home owners ripped off so ruthlessly?
10 Comments
Not only do they have “Arrangment” fees, when you actually finish paying your mortgage, they deliver another kick in the teeth, by charging a “Completion” fee
But who was it who voted in favour of building societies de-mutuallising and becoming banks? None other than these poor home owners, who’s motivation was also their own bottom line and who sought to cash in so quickly. What goes around, comes around maybe?
Who is going to put up with this when they can rent or even buy property at a fraction of the cost abroad? And with that advantage comes higher wages. The government does not want the English in England and this is one way of getting them out, it seems.
“The government does not want the English in England and this is one way of getting them out, it seems.”
Is this perception only just being recognized —- I saw this 40 years ago when the The Great Rape of Britain began and got out then —- Never looked back!.
It might help if people stopped acting like homeownership was your right. Its not. Either you can afford it or you can’t. Where the stigma on being a renter comes from I don’t know. Your not a failure in life if your not saddled with the now crippling debt that is a mortgage. Frankly, I’d rather be topping up my pension fund. God knows your going to need it.
My mortgage payment is less than a rental payment will be. After 25 years when I’ve paid off my mortgage I’ll have something to show for ir and I’ll be able to sell my house and move abroad next door to Woolibuga in Cloud Cuckoo Land.
It’s just too expensive to live here. Even renting is a nightmare. It’s far cheaper and easier to buy property abroad and you also get a lot more land for your money. The only growth area in this country is misery.
Think about it..if the only way to make any profit in this country, is to sell property then as a nation we are right up the creek. More people are leaving as a result and what are we replacing them with?
Banks & Building Societies are “on the make” - They’re Businesses & want profits. But the extortionate ammounts they do make is: Rip off Britain. The Grabbing Government also sets a poor example.
Adam said: Jan 17th, 2008 at 2:23 pm
My mortgage payment is less than a rental payment will be. After 25 years when I’ve paid off my mortgage I’ll have something to show for ir and I’ll be able to sell my house and move abroad next door to Woolibuga in Cloud Cuckoo Land.
Adam, ….. Hurry!.. and try and do a little more overtime and reduce that Mortgage to less than 25 years ……. remember Property values are also increasing here in “Cloud Cuckoo Land”.
When I arrived here 40 years ago I was able to custom build a 2500 square foot house on a 3/4 acre lot and have it paid off inside 10 years …. and the irony is if I wanted to sell it and return to the U of K it would not allow me to purchase a pile of bricks built in Queen Victoria’s reign ……. talk about a housing market gone screwy!! … Would I want return? …….. What! with the social problems which it would seem are endemic in Britain … Not on your Life!!!