Mortgage Repayment Fee??

laurdan

Hi All

My mortgage finally ends April 2011. The mortgage has been with Sandander (Abbey National) for 25years. Never has the mortgage gone into arrears. Always paid on time. When I took the mortgage out the fee to close the mortgage down and send the deeds sot deedsafe was £75.00.

Yet I have received a letter outlining that the fee is now £225.00. I wrote to them outlining why it is so high and asking for a breakdown.

I received a letter yesterday from them explaining the reason for the Repayment Fee of £225.00.

We recently assessed the cost of looking after customers' accounts. The fee reflects the admin costs involved in maintaining an account for the duration of the mortgage, as well as the admin costs we incur when closing down a mortgage.

It then goes on to give examples. And advise me of their right to make this charge which can be found in the mortgage conditions issued at the time my mortgage was taken out. They also sent me a copy of the mortgage conversion which I signed when I took out a discount mortgage with them in 2007.

I am really angry about this and feel that it is an obscene amount of money to pay to finally close the mortgage when they have benefitted greatly from the mortgage and the interest charge me during the life of the mortgage.

Any help or advise from you all out there would be appreciated.

Sunnyday

HI there,

you should only have to pay the exit admin fee which is stated on your original mortgage paperwork.

There is some information about this on these very boards but don`t have the time to find the link atm, if you do pay the inflated cost then you should be able to claim it back.

Good luck.

HTH

SD

laurdan

I shall pay this months mortgage as normal on direct debit, then I shall cancel the DD and pay the last payment by cheque in the branch so they can't take the money anyway. I shall try and find the links, so you think I should write back? Is there anything I can use to help me on my quest to not pay this inflated charge??

laurdan

I have had a search and from what I have found.

1. Can they now charge this fee as I resigned new conditions in 2007 when taking out a discount mortgage. Does this overrule the old conditions that were originally signed at the beginning of the mortgage???

dunstonh

you should only have to pay the exit admin fee which is stated on your original mortgage paperwork.

That is not quite correct.

You should pay the fee on the original mortgage paperwork or if you purchased another deal after that then the latest fee applies. i.e. if you bought the mortgage back in 2000 but bought a new fixed rate in 2005 then its the fees in 2005 that apply. Not those in 2000.

1. Can they now charge this fee as I resigned new conditions in 2007 when taking out a discount mortgage. Does this overrule the old conditions that were originally signed at the beginning of the mortgage???

Yes. The 2007 agreement is what they should go by.

I am really angry about this and feel that it is an obscene amount of money to pay to finally close the mortgage when they have benefitted greatly from the mortgage and the interest charge me during the life of the mortgage.

Why did you buy the mortgage deal in the first place if you thought that? What makes you think they have benefited greatly from the mortgage interest?

Mortgage deals often reduce the net interest margin to near zero or in some cases totally to zero with the fees being the only place they profit.

laurdan

So I don't have a leg to stand on then???? I will be wasting my time writing back???

Sunnyday

Thanks for clarifying this Dunstonh,

i assumed that the mortgage conversion in 2007 still had the original exit fee and not a higher one.

SD

dunstonh

laurdan wrote: »

So I don't have a leg to stand on then???? I will be wasting my time writing back???

Yes. You would be wasting your time as the FSA ruling on this was that the lender should only charge what the last deal you bought said.

kingstreet

As you changed your mortgage product after regulation changed in 2004, you were given a key facts illustration which set out the rate, payments and other important information.

Do you have your copy? What does it say about the redemption or discharge fee?

laurdan

I have checked and it does say the amount of £225.

I took out the discount to help keep the MAr down but they give in one hand and take it back with the other. LOL

Thank you all for your help you have all been most helpful.

de1amo

i would leave 1 quid outstanding on the mortgage and not close the aacount--let them look after your deeds