Woolwich mortgage closure fee £275?

vickijh32

Hi all,

I received my mortgage redemption statement from my solicitor today and I was rather shocked to see that a final repayment charge of £275 has been added :eek:
I was wondering if any of you know when these fees came into action as I have read my original mortgage offer over and over again and I cannot find anything on it anywhere informing me that I would have to pay an admin/closure fee. I took my mortage out in 1994 the only info I can find relating to these fees is here http://www.fool.co.uk/news/Comment/2006/c060317d.htm which goes back to 1996 and the fee was £50 that is a big difference to £275:eek:

I have spoken to a lady at the Woolwich and she said I have to pay the fee, it cannot be waived under any circumstances the best bit is we are staying with them and borrowing more over a longer term and they cannot waive this fee which I had absolutely no idea ever existed. I was NEVER told about it when we took out our original mortgage and I wasn't told about it when we went back to the Woolwich to arrange our new mortgage, I stupidly stayed with the Woolwich thinking I would be a loyal customer due to hubby convincing me (his fault :rotfl: )

Thanks

herbiesjp

vickijh32 wrote:

Hi all,

I received my mortgage redemption statement from my solicitor today and I was rather shocked to see that a final repayment charge of £275 has been added :eek:
I was wondering if any of you know when these fees came into action as I have read my original mortgage offer over and over again and I cannot find anything on it anywhere informing me that I would have to pay an admin/closure fee. I took my mortage out in 1994 the only info I can find relating to these fees is here http://www.fool.co.uk/news/Comment/2006/c060317d.htm which goes back to 1996 and the fee was £50 that is a big difference to £275:eek:

I have spoken to a lady at the Woolwich and she said I have to pay the fee, it cannot be waived under any circumstances the best bit is we are staying with them and borrowing more over a longer term and they cannot waive this fee which I had absolutely no idea ever existed. I was NEVER told about it when we took out our original mortgage and I wasn't told about it when we went back to the Woolwich to arrange our new mortgage, I stupidly stayed with the Woolwich thinking I would be a loyal customer due to hubby convincing me (his fault :rotfl: )

Thanks

This thread might indeed help:

http://forums.moneysavingexpert.com/showthread.html?t=100358&highlight=early+repayment+charges

vickijh32

Hi again,

I don't suppose anyone knows what the Woolwich exit fee was in 1994
I cannot find this anywhere on my original paperwork
All I know according to the BBC news website http://news.bbc.co.uk/1/hi/business/4922604.stm#savings is that 15 years ago it was £35 then five years later it was £50, I'm extremely mad that I have been whacked with an exit fee of £275 although I'm more than willing to pay the £35 or £50 fee that was apparently on my original mortage if this is what I originally agreed to.

Thanks

UK007BullDog

Write to them. If no joy then I would definately move my mortgage to a new lender. Having said that no matter where you go you will find these exit fees.

Dont know why you need a solicitor if you are remortgaging? Or are you buying a new place and a new mortgage? What about portability?

I think the Woolwich have you over a barrell if you are exchanging now with your solicitor, and they know it as you need the mortgage now.

vickijh32

I am moving house hence remortgaging, although I'm still with the Woolwich and my mortgage wasn't portable as it was an 'old mortgage' so I apparently had no choice but to remortage, I stayed with them and was not told I would have to pay this fee when I arranged my 'new mortgage'.
I will be writing to the Woolwich once I have moved and settled, like I say I don't mind paying the £35 or £50 which I apparently agreed to but £275 is just taking the mickey.

Thanks

saber1

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vickijh32 wrote: »

Hi all,

I received my mortgage redemption statement from my solicitor today and I was rather shocked to see that a final repayment charge of £275 has been added :eek:
I was wondering if any of you know when these fees came into action as I have read my original mortgage offer over and over again and I cannot find anything on it anywhere informing me that I would have to pay an admin/closure fee. I took my mortage out in 1994 the only info I can find relating to these fees is here http://www.fool.co.uk/news/Comment/2006/c060317d.htm which goes back to 1996 and the fee was £50 that is a big difference to £275:eek:

I have spoken to a lady at the Woolwich and she said I have to pay the fee, it cannot be waived under any circumstances the best bit is we are staying with them and borrowing more over a longer term and they cannot waive this fee which I had absolutely no idea ever existed. I was NEVER told about it when we took out our original mortgage and I wasn't told about it when we went back to the Woolwich to arrange our new mortgage, I stupidly stayed with the Woolwich thinking I would be a loyal customer due to hubby convincing me (his fault :rotfl: )

Thanks

saber1

Sorry about previous characters - checking to see if site works!

I contacted the Woolwich by phone with a view to paying off my mortgage. I enquired as to what the final repayment charge would be under the terms and conditions of when I took out the mortgage in 1993. I was told it would be £50.00 but their computer system was only able to show a figure of £275. I have since received a repayment schedule showing £275 instead of £50. I have written to the Woolwich saying that I find it unacceptable that they cannot produce the correct paperwork. I plan to pay off the mortage on Friday, 4th May 2007 deducting £225 from the final figure. My concern is although the Woolwich have confirmed verbally that the charge will be £50.00their computer system will show a figure of £275 thus showing an underpayment which will not be the case. My concern is that they will not then release the deeds.

I should be grateful to know whether anyone else has had experience of this and what the outcome was.

saber1 wrote: »

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chivers1977

I work for them and this is due to our systems not being able to understand that we are honouring the old fee that was originally quoted to you. You can either pay the lower figure or pay and it will be automatically refunded to you. There is a special team set up to deal with the refunds which are done by CHAPS back to the DD bank.

In 1994 the fee would have been either £50 or £95. I suspect it was £50. I have the list at work. I will try and remember to look.

chivers1977

It was £50 in 1994

saber1

thanks. Sorry the year we took out the mortgage was 1993 and not 1994. Will this still be £50?

saber1

Re: Woolwich Exit Fee
We find it incomprehensible why a multi-million pound Bank bills you for something which you do not owe knowing it is going to have to make a refund. I do not see why the computer system for the Woolwich cannot be updated to reflect the correct charges thus saving work. We are paying off our mortgage by Chaps. The money is in a high interest account. If we pay £275 to the Woolwich (should be £50) £225 will be refunded to a current a/c from where our direct debits were made which pays 0.1% interest, thus we will be paying the lower figure. We will keep you posted as to what happens!