Woolwich repayment fee

geoffmartin

Hi,

We have just remortgaged - paid off our Woolwich loan. Back in Nov Martin advised anyone planning to repay woolwich mortgages to get in touch with them before end Nov to let them know - they would then freeze the redemption fee at the then current rate of £190.00 - this I did so I was amazed to find they had charged £275 when the loan was settled. On speaking to them I was firstly told there was no such freezing policy I was then told that repayments had to be complete before the end of Dec to qualify!! Can anyone shed any light on this or am I wasting my time persuing this???

Ian_W

Hi geoff & welcome,
I think most lenders are pretty sensitive about these charges, and so they should be after the scandalous way they've hiked them over the past few years. No wonder the OFT has had a go at wider charges as well as credit card ones a few days ago.

Have a read of this thread, it's about A&L but the principal's the same:
http://forums.moneysavingexpert.com/showthread.html?t=100358&page=5&pp=10&highlight=closing+fees

Don't be fobbed off with one or even two no's, first one will be computer generated probably. Ask them to issue a dispute letter so you can take it to the FOS and £1 to a pinch of pig !!!!!! they'll cave in.

HTH.

Crispy_W

Have a look at these two threads.

They are concerning the Halifax, but the principle is the same.

http://forums.moneysavingexpert.com/showthread.html?t=173136&page=2&pp=10

http://forums.moneysavingexpert.com/showthread.html?t=162093

In short, the increase in charge does not represent the increase in cost to the lender and is therefore unreasonable.

Lenders are running scared of the FSA making a ruling and will refund if you refuse to be palmed off.

Good luck!

geoffmartin

Thanks for your help on this one - I got a call from the Woolwich today - they are refunding the difference between the new rate and the rate pre inrease! - only took 2 letters!

Ian_W

Blows my theory then that there is always 3 letters:
1. From the no computer:mad:
2. From the refusal monkey:wall:
3. From the surrender monkey:D

Drat!! Back to the drawingboard.;)

Well done.:money:

sikejsudjek

On a different note, I have paid off my mortgage over 6 weeks ago and still no deeds. In fact the Woolwich haven't even written to me confirming that it is paid off (although the direct debit for the mortgage has stopped).

Just what are they doing for my £275 ? Am I entitled to ask for a reduction for their delays. ? I wish I could charge that much for doing sfa !