End of Mortgage Admin Charge

squiz46

We finish paying our mortgage in January and have just had a letter from the lender telling us that a fee of £225 will be payable on the last day for administration - that seems incredibly high - is this normal? Rang the lender and they said that it was an average fee, some banks charge more, some less. I dont suppose there is anything we can do about it but it does seem unfair and we have never heard any mention of it in the 20 years we have been paying the mortgage!!!!

Ian_W

It will have been in the T&C's, sometimes called a redemption fee, deeds release fee or sealing fee but the thing about it is it's variable during the time you had your mortgage - but, of course, it only varies upwards.

Can you do anything about it - YES, complain - IN WRITING. Tell them you believe the amount is disproportionate to the work involved in closing the account which in truth amounts to little more than sending a form to the Land registry and if they still have your paper deeds, retrieving them from storage and sending them to you. Be prepared to be refused and to write at least twice, possibly 3 times and I think you'll find they will reduce if not completely waive the fee.

Tell them after the first letter and refusal that you intend to complain to the FOS and ask for a deadlock letter. Explained to me that the first refusal is by the machine, the second by the monkey, the third by the surrender monkey!!

Persevere and you'll get it significantly reduced or waived, alternatively grin and bare it!

knuckledragger

squiz46,
How about not repaying all of your loan?
Leave £5 outstanding. The nominal sums of interest that they would be collecting would therefore be disproportionate to the cost involved to your lender. Perhaps they'll offer to pay you to fully redeem your mortgage! LOL!
On a more serious note, if your lender is a building society, is it worth keeping £100 outstanding on the loan for the chance of a windfall?

herbiesjp

Welcome squiz46

Have a look at the following thread:
http://forums.moneysavingexpert.com/showthread.html?t=100358&highlight=early+repayment+charges

It may give some helpful information.

HTH

Bossyboots

knuckledragger wrote:

squiz46,
How about not repaying all of your loan?
Leave £5 outstanding. The nominal sums of interest that they would be collecting would therefore be disproportionate to the cost involved to your lender. Perhaps they'll offer to pay you to fully redeem your mortgage! LOL!
On a more serious note, if your lender is a building society, is it worth keeping £100 outstanding on the loan for the chance of a windfall?

Doesn't this simply mean that when the mortgage is repaid though the fee will still be payable and perhaps be even higher when that time comes.

When we redeemed our mortgage, we had the choice of paying £160 for them to do everything or £80 and employ a solicitor to do the work involved in getting the charge released at the land registry. Needless to say, they got their £80 and we sorted the rest ourselves.

knuckledragger

Bossyboots,
I've kept the original paperwork relating to the release fee payable for my current loan. That's what I'll be paying come whatever when the time arrives. It's in black and white what I am expected to pay, if they want to increase it in the future for new customers then that's the lender's decision. But I won't be paying a future fee that I didn't sign up to...

mountainofdebt

if your lender is Abbey?

The only reason I'm asking is that we've come to the end of our mortgage as well and Abbey want £225 from us as well.

I think I will be writing to Abbey to ask them to justify the fee before I actually pay it.....well you never know spending 30p might just save me £225!!