Reclaim Mortgage Fees - Help!

BigDave81

Hi all, I did post this in the MEAF reclaim thread but thought best chances were on new thread so apologies if this is wrong.

This may seem a bit long winded but I hope someone can offer some advice please.

I am looking at claiming back the MEAF's from 2 old mortgages and need to make sure I get everything straight.

The first is with Abbey, it's classed as a repayment fee, I assume this is the MEAF? I was charged £225 and thisismoney states the fee was £99, can I only claim back the difference of £126 or state it's still unreasonable and ask for the difference to £35 or £50? I'm unsure which amount the FSA deemed acceptable as I have seen conflicting information?

The second is an older mortgage with Northern Rock, fee was classed as discharge of mortgage fee again I assume this is the MEAF? They charged me £195, thisismoney states it was £175 in 2003 but I have no details of what it was in 2001 when I took out the mortgage. Can I again claim back to the £35 or £50 or only the £20 difference as I haven't located the original paperwork?

They also charged me £425 for 'help with costs' I have no idea what this relates to and the redemption letter just refers me back to the offer of advance for details which I haven't located either. This seems a ridiculous amount for essentially offering no service what so ever, anyone offer any insight on this subject?

The other question I have relates to the set up costs of the mortgage as I was only 19 at the time I was more clueless than I am now so just wondering if someone can advise if these charges are acceptable as I have never had them on the following 3 mortgages etc?

Risk Charge = £250
Fee Charge = £230
Admin Charge = £115
Sundries Charge = £25

These charges were on top of the valuation fee or £110 and completion fee of £395.

Any advise would be appreciated so I can get this right first time.

Thanks in advance for any help and comments.

dunstonh

can I only claim back the difference of £126 or state it's still unreasonable and ask for the difference to £35 or £50? I'm unsure which amount the FSA deemed acceptable as I have seen conflicting information?

The FSA made no ruling on what is or isnt unreasonable. With so many providers spreading the cost of the deal between up front fees, interest rate and exit fee, it is impossible to say it is unfair. They also dont need to justify the fee as its not a penalty fee.

Think of it as would you rather pay £500 up front and £100 to exit or £250 up front and £250 to exit (assuming both interest rates were the same)?

The FSA ruling was that the lenders should charge what they said they would charge at the point you bought the mortgage or the last deal you were on whichever is later. If they charged more then they should refund the difference.

you dont need to find out the amounts. Just write to them and say you were charged more than was agreed when the mortgage was taken out. They will check the original amount and the amount charged and refund accordingly.

They also charged me £425 for 'help with costs' I have no idea what this relates to and the redemption letter just refers me back to the offer of advance for details which I haven't located either. This seems a ridiculous amount for essentially offering no service what so ever, anyone offer any insight on this subject?

That charge is fair and acceptable and you only paid it because you changed your lender before that charged had expired. You took the "free money" and agreed to stay with them for x years. You didnt and that is why they claim it back.

Risk Charge = £250
Fee Charge = £230
Admin Charge = £115
Sundries Charge = £25

All acceptable.

These charges were on top of the valuation fee or £110 and completion fee of £395.

Also acceptable.

BigDave81

Thanks for the reply I wasn't aware the FSA hadn't set a fee so that's that cleared up.

I understand about paying up front and exit fees and higher or lower at begining or end, vice versa etc but the costs were both more than stated looking at MSE and thisismoney I just wanted to know what amount of refund to expect so the difference is fine still around £150 after all.

I still am none the wiser about the 'help with costs' though, what free money did I take? I also had to pay over £2000 in ERC's on top so just wasn't sure what this £425 related to.

If all the set up fees are justifiable then so be it I just didn't understand what any of them were for as never charged them on any other mortgages and what sundries are applicable to setting up a mortgage?

The valuation and completion fee were fine anyway it was just noted for info really.

I have rung Abbey and Northern Rock, Abbey siad all fine and will write to me and Northern Rock also said all fine and asked me to write to them so will copy up the template letter.

Thanks again, any other comments welcome also

dunstonh

I still am none the wiser about the 'help with costs' though, what free money did I take? I also had to pay over £2000 in ERC's on top so just wasn't sure what this £425 related to.

It was money given up front to help pay the costs of the mortgage. Usually it was for paying for legal costs etc. It is waived after a period. Typically in line with the ERC. However, they claim it back if you redeem the mortgage in the tie in period.

If all the set up fees are justifiable then so be it I just didn't understand what any of them were for as never charged them on any other mortgages and what sundries are applicable to setting up a mortgage?

They have different names and are charged in different ways. Some may bundle their charges under one admin fee, some will give a breakdown.

BigDave81

Perfect, that at least explains what it relates to then thanks for that.

Just popped the letter to them asking for the difference in exit fee and will see what happens.

Looks about £146 in total for both mortgages thank you :beer:

BigDave81

Had a letter from Abbey and they seem in agreement that refund due of £126, just need to reply after filling in their form and they will deal with it.

Nothing from Northern Rock as yet though.

BigDave81

Wahey, cheque turned up from Abbey for £126 on 16/10/09 :beer:
Not a bad turn around at all so thank you MSE!!

Just need to wait for Northern Rock to reply now

BigDave81

Finally got a reply from Northern Rock but to be fair I did query other costs with them as per my previous posts and they sent a 4 page letter in reply.

All queries addressed brilliantly, each query outlined, copies of contract and terms and fees included and I am very happy with it all, they certainly above and beyond in this case.

They refunded me the difference in MEAF from contract and that actually paid which was £35 and also agreed to refund £25 'sundries' charge. The charge related to paying by cheque for first couple of payments and not direct debit but this was their error at the time.

All in all full and final settlement of £60 refund from 2001 mortgage.

So thanks to MSE for £186 I never expected, a very nice result:T:money: