wingrovebuyer : Hello. My view on this is that the total fee is 1% of the loan amount, with £99 paid on application. IF you take out a life assurance policy / endowment with the Arranger, you only have to pay additional fee of £298, and that's it. If you don't take out such a policy, or if it is cancelled within 48 months, then the balance of the 1% fee is then payable. This is because the Arranger will be making a commission on the policy, which covers their loan fees too. If you don't take out or cancel the policy, they then will need to repay the commission and so you have to pay them their full fee of 1%.
wingrovebuyer : For example, the loan is £150,000. The Arranger's fee is 1%, being £1,500. You pay £99 on application, leaving a balance of £1,401. If you take out the insurance policy, you only have to pay £298 of that balance, the rest is waived. If you don't take a policy,you have to pay £1,401 on completion of the loan. If you cancel the policy within 48 months, you will have to pay the £1,401 too.
wingrovebuyer : Hello, can you leave a rating please or JA won't pay me for helping you. Thanks! WB