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Mortgage Early Redemption charges
jmf1
Posts: 2 Newbie
I recently closed a fixed rate/term NR mortgage early and was charged more than £7000. I have argued with them including writing to the Chief Exec but have got nowhere. Any advice?
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Comments
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was this amount made up of charges over the years or was it an early redemption penalty charge0
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It was an early redemption penalty.0
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The Early Redemption fees will have been shown in all the "Keyfacts" paperwork that you received upfront prior to taking out the mortgage. I knew what mine was going to be (I am paying nearly £2k in ERF) when I took out my current mortgage. As I am now moving but still staying with NR I am paying back 50% of the ERF as I needed to take a longer term fixed to get the lending I require.
It isn't written in small print but in normal sized print. You should work your way through the Keyfacts if you still have them til you find them - they will be there."Life may not always be the party you wish for, but whilst here you may aswell dance"!!!
Murphy's NMPC Memb No 239! Dippychick's De-clutter club Member No 6! - onto room no 2!
My Avatar? Arnie and Casey, proud parents to Storm and Tsu born 19/01/2009!!! - both now in new homes and called Murron and Burger!0 -
jmf1 - despite the fact that terms may have been written into your contract about this payment, many people are now fighting this penalty charge in the same way as bank account charges - and having that money refunded.
No cases of this nature have reached court (yet) but there is certainly a school of thought which suggests that it should be treated in much the same way.0 -
I believe every word jonni says......... I'm after a ERC with the help of the CAG.
Go jonni go.
Lizzy0 -
Has anyone had any luck contesting the fee that mortgage providers charge when a mortgage has been paid off?
Lloyds/TSB want approx £250 from me.0 -
Hi Martyn and welcome.
I've merged your thread with this one regarding early redemption fees and hopefully this will provide some answers to these mortgage questions.0 -
Martyn_H wrote:Has anyone had any luck contesting the fee that mortgage providers charge when a mortgage has been paid off?
Lloyds/TSB want approx £250 from me.
Hi Martyn
There are certain elements to these 'charges' or fees' that mortgage providers will include that cannot reasonably be challenged, and some that can (and should) be.
What does this fee relate to specifically?0 -
Jonni2bad wrote:Hi Martyn
There are certain elements to these 'charges' or fees' that mortgage providers will include that cannot reasonably be challenged, and some that can (and should) be.
What does this fee relate to specifically?
Hi
Purely to the admin costs involved in completing the paperwork when the mortgage ends. Seems way too much to me.0 -
Anything which is a penalty for closing the account early should certainly be challenged.
These sort of charges might be more difficult to challenge though (it doesn't mean you can't!) since they are likely to very much more hands-on or admin based functions require manual intervention.
I agree that such fees are probably extortionate, but I wouldn't want to give you any false hope.
Perhaps you should ask for a breakdown of the fee - let's see if they are prepared to explain what they do for their money....0
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