Mortgage Exit Fees successes and failures

KiKi · 9 August 2007 at 12:12PM

I'm gutted.

I took out a mortgage with the Abbey 7 years ago and had a repayment fee of approx £80. I had to add borrow some additional money last year as a deposit for another property. I then redeemed the mortgage earlier this year.

When I signed up to the additional borrowing, the repayment fee had gone up to £225. So obviously I'm not entitled to a reclaim, because that's what I signed up to - fair enough. But I'm still very disappointed!

Even so, they were very efficient and friendly on the phone. I'll pass the form to my dad instead, and he can reclaim his fees.

longfoot · 9 August 2007 at 12:49PM

hello everyone-this is my very first post on this excellent site!

does anyone know if one can reclaim exit fees on buy to let mortgages?

many thanks

dunstonh · 9 August 2007 at 12:53PM

longfoot wrote: »

hello everyone-this is my very first post on this excellent site!

does anyone know if one can reclaim exit fees on buy to let mortgages?

many thanks

Buy to let mortgages are unregulated and they dont have to follow FSA rules.

Muzzy67 · 9 August 2007 at 1:11PM

MarkyMarkD wrote: »

No. The FSA ruling means that MEAFs are fixed at the level you agreed to when you took out the mortgage. Any subsequent increases (or reductions) for new borrowers have no effect on existing borrowers at all.

BUT if you switched product with Northern Rock, you would THEN qualify for a zero MEAF*.

I'd hesitate to advise doing that for this reason alone - you need to consider the overall costs of switching product. But it's certainly something to bear in mind.

* This is assuming that NR's switcher products indeed carry a zero MEAF. It wouldn't surprise me if NR are making a lot of brouhaha about abandoning MEAFs for new customers whilst keeping them for those borrowers switching products.

I beg to differ after threatening Northern Rock with the courts to explain there exit fees I have just received a letter with a disclaimer to sign offering the full £250 exit fee they charged me 3yrs 10mnths ago. This is after the original offer of £75 difference followed by another offer of £75 difference + £12 goodwill gesture. The disclaimer absolves them of any further claims in this matter but I have got the total amount charged back. :j

:money:

Nick_C · 9 August 2007 at 1:54PM

Martin's article suggests Abbey are currently not charging an exit fee. I just phoned them, and they quoted me £225.

I first changed my Mortgage to Abbey over 10 years ago, but then I remortgaged (didn't move but needed to raise capital) in Feb 2006.

I reduced the capital balance of my mortgage to £5.00 in May 2007, and am now paying £0.03 per month interest! Don't see the point of paying them £225 until I have to - if they want to waste money collecting threepence a month for the next five and a half years, let them.

I might drop them a line and ask them to consider a reduced fee anyway.

Noz · 9 August 2007 at 2:00PM

Nick_C wrote: »

I might drop them a line and ask them to consider a reduced fee anyway.

I think it would be worth the cost of a stamp, with such a nominal balance they may just waive it to save money in the long run

KiKi · 9 August 2007 at 2:19PM

Nick_C wrote: »

- if they want to waste money collecting threepence a month for the next five and a half years, let them.

Ooooh, £1.98 over five and a half years, that's an AWFUL lot of money.

I'd negotiate a non-fee with them, based on their admin that it's costing them for the next five years.

jj126 · 9 August 2007 at 5:58PM

One down one to go.I`ve just spoken to Barclays/Woolwich and they are refunding £108.I`m waiting for a form from Abbey so will see what the outcome of that is.
Thanks Martin.

MarkyMarkD · 9 August 2007 at 9:43PM

Muzzy67 wrote: »

I beg to differ after threatening Northern Rock with the courts to explain there exit fees I have just received a letter with a disclaimer to sign offering the full £250 exit fee they charged me 3yrs 10mnths ago. This is after the original offer of £75 difference followed by another offer of £75 difference + £12 goodwill gesture. The disclaimer absolves them of any further claims in this matter but I have got the total amount charged back. :j :money:

Just because one person obtains money they're not entitled to by bullying their ex-lender doesn't affect the moral or legal rights and wrongs one iota. If you originally agreed to pay £175, you had no reason to refuse to pay £175.

Wolfie_Smith_2 · 10 August 2007 at 7:13AM

Received a reply from NatWest the other day informing me that they are going to refund me £140 of the £225 sealing fee I paid as a "gesture of goodwill".

I have just checked my current account and the money has arrived.

They also mentioned that any increase in the sealing fee is included with each yearly mortgage statement. Well thats news to me.

It turns out that when I took out my mortgage in 2003 their sealing fee was £85. This increased to £225 in February 2005. The very same month that I transfered my mortgage to Britannia BS. So thats the value that they charged me.

I have scanned every inch of paper work regarding my NatWest mortgage and cannot find any reference to a value of any sealing fee. Britannia BS on the other hand clearly states on my mortgage contract that they charge a Redemption Discharge Fee of £75 if I repay the loan early.

Take a leaf out of Britannia's book NatWest!

So a return of £140 in return for ten minutes of my time, an envelope and a 2nd class stamp is not bad.

Thank you Martin for your very informative program on ITV recenty. Your advice has paid for another year's TV Licence.

Power to the People!

Mortgage Exit Fees successes and failures

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free