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Document release fee
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Llyllyll
Posts: 870 Forumite
As there are a few threads going at the moment re mortgage company fees I thought I would also ask for some advice on document release fees.
I have just remortgaged and am happy with the deal I got, however it cost me £195 for my previous lender to close the account/forward documents to me. Now I appreciate that there is a cost involved but in a similar way to the unfair bank charges, £195 seems a bit steep to send me a letter and close the account.
Does anyone have any experience of challenging these fees?
Here's hoping...
I have just remortgaged and am happy with the deal I got, however it cost me £195 for my previous lender to close the account/forward documents to me. Now I appreciate that there is a cost involved but in a similar way to the unfair bank charges, £195 seems a bit steep to send me a letter and close the account.
Does anyone have any experience of challenging these fees?
Here's hoping...
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Comments
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Following up my own post it seems that there are others on the case as well. Makes interseting reading for anyome who's interested.
http://www.consumeractiongroup.co.uk/forum/mortgage-companies/0 -
Yes I'm currently challenging Abbey who charge £225 for this. I've had one refusal and now a letter from the complaints manager saying he's looking into it.
When I took out the mortgage a mere 2 years ago this fee was £90 which I feel is much more reasonable. Quite a few on here have won their cases as it can cost the lender £300 to take the case to the Ombudsman.
Good luck
p.s Copies of letters are on here somewhere.0 -
Llyllyll wrote:As there are a few threads going at the moment re mortgage company fees I thought I would also ask for some advice on document release fees.
I have just remortgaged and am happy with the deal I got, however it cost me £195 for my previous lender to close the account/forward documents to me. Now I appreciate that there is a cost involved but in a similar way to the unfair bank charges, £195 seems a bit steep to send me a letter and close the account.
Does anyone have any experience of challenging these fees?
Here's hoping...
That £195 wouldn't be with A&L would it? The reason I say that is because I switched from them late last year and they had raised it to £295 without telling any current customers. Needless to say I got it reduced back down to £195, but they couldn't (or say we say wouldn't) provide a justification for how it actually costs them that much! We all know it doesn't cost them anywhere near that much - its just another profit raising measure. Thats why I'm now with Nationwide who charge under £1000 -
humfer wrote:That £195 wouldn't be with A&L would it? The reason I say that is because I switched from them late last year and they had raised it to £295 without telling any current customers. Needless to say I got it reduced back down to £195, but they couldn't (or say we say wouldn't) provide a justification for how it actually costs them that much! We all know it doesn't cost them anywhere near that much - its just another profit raising measure. Thats why I'm now with Nationwide who charge under £100
Oh and also I think with Nationwide they even waive the fee if the mortgage is less than 10 years - --- unless I'm mistaking this with another type of fee..0 -
Llyllyll wrote:It's with the Bank of Ireland (who I wouldn't touch with a bargepole again). My letter (an adapted 'unfair bank charges' one) is ready to go. I will post back if I get any joy.
Check your original documents you got when taking out the mortgage - if it states £195 there I wouldn't think you have much of a chance. However if they have increased it (as many have) then complain like hell!!!!0 -
Just to add, don't let this payment hold up the re-mortgage process. Pay it if needs be but still claim.
I originally complained about my fee many many weeks ago and still have no conclusion. I'm due to complete my remortgage this week so wil pay the £225 but still pursue the claim. As my relationship for Abbey is now practically diminished after 15 years with them I wouldn't be surprised if they delayed the claim on purpose.0 -
Already with my new lender so no problems with the payment holding up the re-mortgage process.Check your original documents you got when taking out the mortgage - if it states £195 there I wouldn't think you have much of a chance. However if they have increased it (as many have) then complain like hell!!!!
Humfer - It does say £195 but the reason that I'm doing this is because they appear to me to be disproportionate. I agree that there’s probably not much hope but nothing ventured - nothing gained.0 -
Problem is though - the new lender will also charge a fee if you leave later - so circle of fees0
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Llyllyll wrote:Already with my new lender so no problems with the payment holding up the re-mortgage process.
Humfer - It does say £195 but the reason that I'm doing this is because they appear to me to be disproportionate. I agree that there’s probably not much hope but nothing ventured - nothing gained.
Unfortunately they will state it was stated in the original terms and conditions, so you are unlikely to get them to budge. Don't get me wrong though - I am in complete agreement that it does not cost them £195 to close your account and that it is purely a means to make profit0
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