Mortgage exit fee written up in Key Facts

techno79

I took out a 2 year fixed rate mortgage with Alliance and Leicester back in December 2006. The key facts I was given stated that £295 was payable for their Redemption Administration Charge. I've read the posting and articles about claiming back on Mortgage Exit fees but they seem to be for people who were charged more than what they originally signed on for.

Have people managed to claim successfully in my situation? Even though it was written from the beginning, I'm hoping it is claimable on the basis that the charge is much higher than their true administration costs.

Any help or suggestions? Thanks.

koexelek

Don't think you will have much luck there.

Although £295 is indeed an excessive charge, the fact they stated it up front ( and you agreed to proceed on that basis) really negates any case you might have.

People got joy where the lender stated a figure up front, then subsequently increased it

techno79

koexelek wrote: »

Don't think you will have much luck there.

Although £295 is indeed an excessive charge, the fact they stated it up front ( and you agreed to proceed on that basis) really negates any case you might have.

People got joy where the lender stated a figure up front, then subsequently increased it

Thanks for responding. I thought so but I also agreed to the credit card and bank charges they stated up front (e.g. going overdrawn or late payments) but many people including myself have successfully claimed back on these with interest. I'm happy to give it a punt to see what happens but would be more confident/enthusiastic if I know people in similar situation have been successful.

_Andy_

There is nothing to claim back in this case.

dunstonh

The lenders often included the exit charge as part of their overall pricing. A&L in particular did it for years and wasnt an issue as they tended to offer very good deals each time one expired and if you stayed with them you never paid that £295.

I'm hoping it is claimable on the basis that the charge is much higher than their true administration costs.

It is not a penalty charge and doesnt have to reflect the costs.

I thought so but I also agreed to the credit card and bank charges they stated up front (e.g. going overdrawn or late payments) but many people including myself have successfully claimed back on these with interest.

Thats because those charges are penalty charges and have to reflect the cost. The exit charge is not a penalty charge.

The FSA ruling was quite clear that it was only the difference between what was quoted at the start and what you pay at the end that can be refunded.

techno79

dunstonh wrote: »

The lenders often included the exit charge as part of their overall pricing. A&L in particular did it for years and wasnt an issue as they tended to offer very good deals each time one expired and if you stayed with them you never paid that £295.



It is not a penalty charge and doesnt have to reflect the costs.



Thats because those charges are penalty charges and have to reflect the cost. The exit charge is not a penalty charge.

The FSA ruling was quite clear that it was only the difference between what was quoted at the start and what you pay at the end that can be refunded.

Thanks for the clarification. One less job on my big to do list