Mortgage Exit Fees successes and failures

TDAV

Following the Tonight programme I wrote to the Halifax complaining about
the mortgage exit fee I had been charged. Within one week I received
a letter back offering £100 refund. Thanks Martin.:j

MarkyMarkD

Lizzie_B wrote: »

Hi,

Can anyone clarify this for me. We are hoping to pay off our mortgage next month and have just phoned the Abbey to discuss. Seems they will charge me £225 repayment fee! Because I was daft enough to sign the mortgage offer which states this. Surely, if the FSA have said their charges are unwarranted and the true cost is a lot lower, this can't be right??
The young woman I spoke to was adamant that this would be the charge. Just to clarify - it is not an early redemption penalty.
Not sure where to go from here Any ideas??

Thanks

As has been pointed out many times on this thread, including my post exactly 6 posts above yours, the costs are irrelevant.

The FSA did NOT say "their charges are unwarranted and the true cost is a lot lower". The FSA's ruling was that lenders could only charge the originally agreed amount, or any justifiable increase over and above that amount.

If the going rate for MEAF when you took out your mortgage from your lender was £225, then you must pay £225.

I don't understand why you say you were "daft enough" to sign this mortgage offer. You wanted the mortgage; they offered it including various terms including the £225 MEAF. End of story.

If you wanted a different mortgage, you could have chosen one. But a £225 MEAF isn't that large and if your mortgage was the best buy for you it's unlikely the MEAF alone would have made you change your mind.

Lizzie_B_4

[FONT=arial,helvetica,sans-serif]In response to Marky MarkD. Firstly, Thank You for taking the time and trouble to respond. I did read 'loads of posts' including your reply six above mine, although clearly still had not 'got the plot' and I obviously quoted the FSA incorrectly. On 'checking back', particularly re-reading Martin's article, I formed my view from the following -copied from Martins article:-

"The actual administration cost to a mortgage lender of closing down a mortgage isn't thought to be much more than £50 so it's arguable that you needn't pay more than £50, regardless of what your contract says. Therefore writing to your lender, asking it to justify the charges with a full breakdown, and if it refuses asking for a full refund, can work."

I have now written to Abbey asking them to justify this charge, will probably get me nowhere - but I feel better for asking! The Banks make far too much money and it is time they were challenged!
[/FONT]

suekers

read Martins mortgage fees article phoned Halifax 2 mins £170 in the post
told my daughters E. phoned C&g £115 in the post couldnt find roll number for Halifax so have to write in. S doing hers later. Martin has so far saved this family inc bank charges £8000.:money: he is the best.

MarkyMarkD

Lizzie_B wrote: »

[FONT=arial,helvetica,sans-serif]In response to Marky MarkD. Firstly, Thank You for taking the time and trouble to respond. I did read 'loads of posts' including your reply six above mine, although clearly still had not 'got the plot' and I obviously quoted the FSA incorrectly. On 'checking back', particularly re-reading Martin's article, I formed my view from the following -copied from Martins article:-

"The actual administration cost to a mortgage lender of closing down a mortgage isn't thought to be much more than £50 so it's arguable that you needn't pay more than £50, regardless of what your contract says. Therefore writing to your lender, asking it to justify the charges with a full breakdown, and if it refuses asking for a full refund, can work."

I have now written to Abbey asking them to justify this charge, will probably get me nowhere - but I feel better for asking! The Banks make far too much money and it is time they were challenged!
[/FONT]

Thanks for the response and for noting that the FSA didn't say what you accused them of - no wonder Abbey fobbed you off (correctly!).

I don't agree with Martin on this one; nor do the FSA. Nor has Martin reiterated this point in his last 5 TV appearances on the subject. He appears to have retracted this view since the article was originally written.

Do you not accept my point about moral liability? You agreed to pay £225 when you bought the mortgage, so you should pay £225.

The_Rodge

I redeemed my First Trust Bank Mortgage (a Northern Irish Bank) in August 2005 and was charged £150 fee for transfer of Title Deeds and Bank Sealing fee and a further £40 to provide me with a mortgage redemption figure.

I sent off Martin's standard letter on July 19th asking for the full amount plus interest back and on August 4th received a cheque for £150. Happy days, thanks Martin

Trying_to_be_good

Just phoned NatWest about an old mortgage, and £140 refund will be in my account wthin 10 days!!

Feline-Fan

Sorry to be thick - but is a mortgage exit fee the same as a Repayment Fee?
Only we changed our mortgage last Sept and Abbey (been with them since Dec '92, so not on any special deal or anything), charged us this, (£225), so am not sure if I am going to try and claim back the right thng?
Do I just ask what was on my original contract and they'll refund the differnce - annoyingly shredded all our old mortgage stuff, a few weeks ago, so haven't got evidence of what we agreed to pay in original contact!

heavenella

watched you on GMTV today. Rang up the Halifax, a few minutes holding on, very nice lady, and I will be receiving a £100 refund.
Thanks a lot martin:rotfl:

Tweel

I've just come off the phone to Barclays where we had a mortgage a few years back. Our exit fee in the contract was £150 but we were actually only charged £50!

I was looking forward to a days shopping :rotfl:

Can someone tell me, we re-mortgaged from Barclays to C&G where we had a 2 year fixed rate mortgage. At the end of those 2 years we decided to stay with them for a 5 year fixed rate mortgage. They did charge us £200 admin fee for this. Is this the same as an exit fee?