Mortgage Exit Fees successes and failures

Smeggie

Our redemption fee is 10k this is extreemely high and we have had our house valued at 20k lower than they valued it for remortgaging! we need to sell our house but dont know how we can pay the mortgage back and the fee... Any ideas...

dunstonh

Smeggie wrote: »

Our redemption fee is 10k this is extreemely high and we have had our house valued at 20k lower than they valued it for remortgaging! we need to sell our house but dont know how we can pay the mortgage back and the fee... Any ideas...

Usually when the fee is that high its because you took on a special deal with a tie in period and that is the penalty for buying yourself out of the deal. Quite fair and legal.

The value of property can go down as well as up and we are in a downward trend at the moment. That is expected to continue. The last downward trend lasted over 5 years. We are only 8 months into this one. No-one knows where or when it will stop

MarkyMarkD

Just a reminder - this thread is about Mortgage Exit Administration Fees which vary between £0 and £295. It is not about Early Repayment Charges which are due when you redeem a mortgage during an ERC period. ERCs can be amounts up to many tens of thousands.

If your query is about ERCs, please post here: http://forums.moneysavingexpert.com/showthread.html?t=507591 and not on this thread. Thanks.

But if your query is just to say "I am being asked to pay an ERC and I don't want to", then please don't bother. ERCs are 100% legal and there is no legitimate way to avoid them, other than under the terms of the deal by porting the mortgage to a new property or simply waiting until the ERC term expires.

shella_n

Hi

Just recently found this site and its fantastic!
I followed Martins advice on this and after a 5 minute phone call to Halifax I am getting a cheque for £75 from a mortgage I paid off nearly 5 years ago!.
Thanks so much Martin.

didsmob

It worked - no probs. Mortgage Trust charged me £225 on exit in 2004 and have just refunded £100 even though I did not know how much my agreement actually said.

Incidentally, they did say that they were under no obligation to refund as the loan did not fall under the jurisdiction of the FSA. Why, I do not know unless it was arranged before the FSA came into being. I think I took the mortgage out in 2001. So they generously made a goodwill payment - somehow I think not!

MisterT

I dug out my documents for an old mortgage I had with the Alliance &
Leicester and found I'd been charged £295:00 instead of £85:00. Sent off a
letter as per the templates and a week or so later got a cheque for £210:00
- fantastic!
I also tried calling the Royal Bank as I was charged £250:00 by them to exit
a mortgage. They told me I wasn't entitled to any refund as it was stated in
the documentation that was the fee. Thing is, they're no longer levying this
charge so I'm wondering if it's worth pursuing by asking them to justify
that charge by giving me a breakdown of the costs - does anyone think it's
worth a try?

MarkyMarkD

MisterT

For about the 100th time on this thread - NO. Costs are irrelevant. You agreed to pay £250 when you took out your mortgage.

Do RBS have the right to say "we are going to charge you £250 more than you agreed to?" No. The FSA said that was unacceptable.

So do you have the right to say "I am going to pay you £250 less than I agreed to"? No. It works both ways.

The fact they are no longer charging this fee on new mortgage contracts is completely irrelevant. You might not have noticed, but they are also charging significantly higher rates on such new mortgage contracts.

hulltrucker

Saw Martin on It Pays to Watch last night - Realised I had never done this so thought I would give it a go - Rang the Halifax and the guy said " oh havnt done one of these for a while - who is it this time?" I replied Martin Lewis "Ah he's not my favourite person - He's not always right you know, but he is on this one" Depite this the guy was quite chirpy and effeciently told me I was owed £35 for my mortage I repaid nearly 10 years ago! Apparently a cheque is in the post so Martin - I like you even if the Halifax don't!

Trivster123

I have just spoken to Barclays and they instantly said they would refund £223.98 which is fantastic from a remortgage I did last year.

BlueScoob60

Hi - I moved house 18 months ago, and switched mortgage provider in the process.

After watching last night's programme (and not having any idea about what exit fee I was charged, and what I SHOULD have been charged) I decided to pick up the phone to my previous lender.

In less than 2 minutes, I was told that I paid an exit fee of £225, when I should have been charged only £50. KER-CHING!!! £175 difference!

PLUS...!!

They also said that an additional £19.43 in back interest would be paid to me making a grand total of:
£194.43

And all for a 2 minute phone call!!!

Thank you "ItPaysToWatch" :beer:

(** EDIT ** forgot to mention - this was with Cheltenham & Gloucester)