Reclaiming Mortgage Charges

Sas_2

:eek: Hello
I heard on the Radio last night that you can reclaim mortgage charges, I was recently charged £499 when I remortgaged and wondered if anyone has tried to reclaim these ' Set up Fees'.
Thanks

toonfish

on what basis do you think you could be able to reclaim them? Were you not given a KFI document detailing all the costs and charges?

sammyjammy

The article you are refering to is a recent ruling that the OFT made concerning Admin charges, this is the charge that used t obe fro maround £0 to £100 and now go up to £300, basically what they are saying is if the fee was £99 when you took out the mortgage this is the fee they should have charged you, if not you are now entitled to compensation to refund you the difference, it wasn't relating to other mortgage charges such as Early redemption penalties.

Sam

mrsnow

I have read your posts and I am currently trawling the 'net for answers. How far back does this issue go back to. I was charged an extortionate amount to change my mortgage from fixed to repayment (staying with the same lender!). I am going to watch this VERY carefully.

MortgageMamma

what do you mean change from fixed to repayment? you mean interest only to repayment or from a variable rate to fixed or fixed to some other sort of rate surely?

What is it with people these days, you sign a contract, you stick to it. its that simple, if you don't like the contract initially, then don't sign it. If the trend continues of people screwing banks and lenders for profit then expect to see some unfavourable changes on the mortgage market, i.e. increased rates, one way or the other, the lenders will get their money out of you. You might get a few hundred quid back which you feel you ought not to have paid, but collectively people doing this will result in unfavourable market changes which will affect the innocents, i.e. the people who sign a contract and stick to it.

millsy1980

MortgageMamma wrote:

what do you mean change from fixed to repayment? you mean interest only to repayment or from a variable rate to fixed or fixed to some other sort of rate surely?

What is it with people these days, you sign a contract, you stick to it. its that simple, if you don't like the contract initially, then don't sign it. If the trend continues of people screwing banks and lenders for profit then expect to see some unfavourable changes on the mortgage market, i.e. increased rates, one way or the other, the lenders will get their money out of you. You might get a few hundred quid back which you feel you ought not to have paid, but collectively people doing this will result in unfavourable market changes which will affect the innocents, i.e. the people who sign a contract and stick to it.

Hear, hear :beer:

avondale

Sorry i totally disagree with your post mortgagemamma, if my understanding is right why should i pay totally over the odds for a service as in admin fees for a mortgage. If i payed for instance £100 to start my mortgage, why should i pay possibly double or 3 times as much when my contract comes to an end. What more work is involved when the contact ends than when it starts? If i and others are so wrong, why would the oft be getting involved. As for screwing banks and such like!!!, i think they have hand the upper hand for a long time and peoples pockets have been lined for far to long and now don't like the fact that they are for want of a better word been found out. This after all is supposed to be a money saving sight and this has been rightly brought to people attention. A mortgage is probably the biggest financial commitment a person will ever have, and i think the difference in the start and end admin fees are ridiculous.

Beate

The following article in today's Sunday Times is very very interesting:

http://www.timesonline.co.uk/article/0,,2097-2568466.html

Basically it says that you should only have to pay the mortgage repayment/exit fee that was mentioned in your contract when you took the mortgage out, NOT the fee they charged you when you paid your mortgage off, which is much much higher. My boyfriend sold his house last year and was charged £225 by Abbey - we are currently looking through his documents to find out the sum he was quoted in his contract. If we can't find it, can we just send them a letter along the lines of the templates from the "reclaim bank charges" forum? I think Martin should let people know about this latest "get your money back from a bank" revolution through an article on the website and also set up a chat forum dedicated to this topic as well, because a heck of a load of people will try and get their money back here as well.

geordiescouse

Hi, I've just picked up an article from the financial mail with a draft letter in their 'thisismoney' web site claiming a refund for their increase in closing a mortgage fee. (Alliance and Liecester have already agreed to refund past customers who paid a higher than initially agreed fee). However I've just shredded all my initial contracts from Abbey who I think? used to charge £125 and have just last year charged me £225 to close my mortgage when I moved to a new lender. Can anyone verify what the Abbey used to charge about 5 years ago to close their mortgage?
Thanks in advance....

shrewd_saver

MortgageMamma wrote:

what do you mean change from fixed to repayment? you mean interest only to repayment or from a variable rate to fixed or fixed to some other sort of rate surely?

What is it with people these days, you sign a contract, you stick to it. its that simple, if you don't like the contract initially, then don't sign it. If the trend continues of people screwing banks and lenders for profit then expect to see some unfavourable changes on the mortgage market, i.e. increased rates, one way or the other, the lenders will get their money out of you. You might get a few hundred quid back which you feel you ought not to have paid, but collectively people doing this will result in unfavourable market changes which will affect the innocents, i.e. the people who sign a contract and stick to it.

I have to say that I disagree with your comments Mortgagemamma

I took out a mortgage with Halifax in 2000 when their "Deeds Release Fee" as it was called was £75.00 I work for a bank (not Halifax) and spent a few years in the department which deals with such security releases. It took 10 minutes of my time to do 1 release, add that to the couple of minutes it took for the manager to job the work out, the cost of a stamp, the price of the courier to bring the deeds (divided by the 100 or so he's bringing anyway) and you're nowhere near £75. To add insult to injury, they've now increased these fees to £225 - why?? Postal prices haven't increased that much, I know my wages weren't £225 for 10 minutes! :rotfl:

I'll be asking for the difference back for sure.:mad:

eden37

I changed lenders from Halifax to Nationwide in November 2005 and was charged £175.00 repayment admin fee. When we took the mortgage out in Jan 1995 it was a lot less than that. I dont have the paperwork for the 1995 original agreement but do have it for the redemption . I am going to write to them with a copy of the redemption statement and ask for a refund of the difference. I will keep you all posted if I suceed. Hopefully Martin will highlight this in his weekly e mail .;)