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Mortgage Exit Fees successes and failures

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This discussion is to report success and failures stories for Mortgage Exit Fee claims in relation to the

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MSE Web Editor, mainly responsible for looking after, and keeping up-to-date, ‘hard-core’ financial articles such as credit cards, savings and loans.

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  • Hi,
    I checked through my details in my previous mortgage with Natwest and found that they had charged me a "sealing fee" of £225 when it was stated as £50 in my agreement.

    I've sent the letter off and am awaiting a reply!!
  • Complained nearly a year ago to Alliance and Leicester about their £295 exit fee, both from the angle of the punitive disproportional charge (a fee can't be a penalty), and the contract being unfair.

    They initially offered to drop it to £225, but after a further letter they reduced it to £140. In light of this article maybe it would have been possible to hold out for even more, but I was happy at the time.

    Note this was all after the mortgage had already been redeemed as I didn't have time to hold out and argue with them whilst the remortgage was taking place.
  • silvercarsilvercar Forumite, Board Guide
    41.6K posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Moved house in the Summer and kept (but increased amount) mortgage with the Coventry BS. A few weeks after moving I received a cheque from them for £225 the total redemption fee. The funny thing was that I hadn't requested the refund, though the enclosed letter was in response to my request. I'm guessing that my solicitor had contacted them.

    The other point is that I had signed upto a new deal with the coventry in the previous year, so there was probably very little difference between the redemption fees from when that mortgage started.
    I'm a Board Guide on the Debate House Prices & the Economy, House Buying, Renting & Selling, Mortgages and Endowments, In My Home incl DIY, Overseas Holidays & Student boards.
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  • Hi there,

    In May 2005 I was charged £115 Repayment Admin Fee and £50 Deeds Despatch Fee when I paid off my mortgage, making a total of £165 and I am considering asking for a refund.

    When people talk about these charges is it right to count both of these or to keep them separate? Martin does not go into too much detail about the name of the fees in his article but I reckon no matter what you call 'em they are a rip-off.

    Furthermore, I am sure I was not told of these charges when I took out my mortgage.
  • drahadraha Forumite
    1 posts
    Hi All

    In the two years to Sep 2006, Abbey increased my MEAF from £99 to £225. I wrote one letter asking for a full breakdown, to which they replied that originally there was also an £80 fee "if you wanted Abbey to act in the removal of our charge"--so they're saying the fees were £179 in 2004? I'm not sure what that means, so I've gone and sent the template letter asking for the £126 difference.

    Anyone got any further advice?


    First Letter
    In September 2006 I remortgaged and left Abbey. I was surprised to find that the administration fee Abbey charges for leaving had increased from £99 to £225. I was a loyal customer who made repayments for more than two years, I always maintained my account well, and I did not leave the contract early.

    I do not recall Abbey agreeing this rise in fees with me or telling me that exit fees would increase by any objective standard amount at the start of our contract. Abbey also did not give me any other valid reason for the rise.

    The rise is more than 130% over less than two and a half years—far greater than inflation. Please provide a breakdown showing what this fee is for.
  • I recently (Jan 2006)went to the Ombudsman regarding miss selling in 1988, but as I had repaid a large amount, I got no joy as the endowment would cover what was remaining. I was then appalled at the fee charged which was £295. When I complained, I also got nowhere with this.
    Due to the recent press coverage I have claimed this fee back plus the interest as the fee went on to my new provider. I Will keep you posted on the outcome.
  • After receiving my money tips email letter, i rung my bank Lloyds TSB and told them I was putting a letter together, re charges for handing over my deeds when i paid up my mortgage. The lady was very polite and after getting my details asked me to hold on, five minutes later she came back to me telling me my rebate of between £150 to £190 would be paid into my account in 5 to 6 days. This is a top result and all thanks go to Martin for informing us of our right to claim this charge or part of it back.
  • Just called the Halifax and asked them about my repayment fee.
    I settled my mortgage last week and was charged £175.00 repayment & £50.00 despach fee.
    Not knowing what the original agreement was I asked the Lady to check & gave her my account number. Quick as you like she told me that the original fee was agreed at £50.00 repayment fee and offered to send me a cheque. I asked about the deeds despach issue, and was told that this was not covered by the F.S.A. announcement.
    £125.00 for 5 mins work. Martin your'e a bloody genious thanks
  • I have been offered £95 from Northern Rock - should I take it? Took two days for them to respond to my letter. The £95 is difference between fee quoted at start and fee charged at end of mortgage.
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