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Mortgage Exit Fees successes and failures
Comments
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i had no details really except my name previous address and approx year but i wrote to both the mortgage lenders adapting martin's template a bit and asking them for details and any money plus interset i was due and although one said i wasn't owed anything barclays sent me £200! wow! thankyou so much0
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Today, after using the telephone number from this site, I rang the Woolwich up about a mortgage I redeemed nearly 4 years ago. I didnt have my old mortgage number but gave the lady my address etc. After a 3 minute call she told me that I had overpaid by £100. With 4% interest this amounted to £116.22 which was going to be put in the bank account of my choice within 5 working days. Just wanted to say Thanks!!0
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I couldn't find any paperwork on the fees i was charged and wasn't sure how to work it out but i did have my previous mortgage reference numbers, so i adapted the template letter sent it off and hoped for the best, I got £85 back from Natwest and £90 from Nationwide. Thankyou MSE for the advice. xx0
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:j I was very pleased to get a full refund of £225, by using Martin's template letter and then sending a follow up letter asking for justification of the charges. (claim was turned down on first letter).
The original fee was £65, but this increased to £225 when I changed to a new mortgage product and this was stated in the documentation.
It's well worth asking, because I believe lenders would not refund if the charges were deemed reasonable. MANY THANKS TO MONEYSAVINGEXPERT.0 -
I wrote to Chelsea BSoc, asking them to justify their fees, not realising that the fee was the same on entry as on exit..ie £175.
Two days later I received a very nice letter and a full refund of £175......that took me completely by surprise!!.
I actually now feel very guilty as I always found Chelsea to be excellent in their approach to customer service, their staff actually trest customers as people, and they don't need a script in order to answer a question.
I suppose I'll live with it though! Thanks to Moneysavingexpert....0 -
I recently paid off a halifax mortgage. I had changed the mortgage terms a few years ago and in the relevant documents there was a condition that i had to pay 175 on redemption of the mortgage.
I sent a letter to halifax asking them to break down the fee so i could see what work they did. I received their reply which set out 7 or 8 different jobs they said they had to do. Only half of them applied to my mortgage, and the other half must be computerised so it will take seconds to do. i wrote to them saying that, and I got a reply ignoring my comments but agreeing to a full refund.
So the moral of this story is that if you ask the right questions they will find it difficult to reply and would rather repay you.0 -
Yes and as a result of all the people doing so, we're all going to be paying for what is, essentially, you blackmailing the companies in question. Top work.0
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It is not blackmail at all. It is a simple application of English contract law. When you sign a mortgage contract, the lender tells you what the exit fee is. You, the consumer, have no idea if that fee is reasonable. Only the lender knows what work is required to discharge the mortgage. The consumer has to take the lender's word that the fee is fair. In those circumstances, where one party has a knowledge advantage over the other party in a consumer contract, the law requires the party with the advantage to act reasonably. If he acts unreasonably by charging a fee that is not commensurate with the work he actually does, then the law will require him to repay the difference.
That is why banks repay. They know the law, and know they cant win. It has nothing to do with blackmail at all - that is a ridiculous comment. If consumers stood up for their rights in this way, there would be less ripping off by institutions to begin with.0 -
If he acts unreasonably by charging a fee that is not commensurate with the work he actually does, then the law will require him to repay the difference.
Which is exactly what they have been doing.That is why banks repay. They know the law, and know they cant win. It has nothing to do with blackmail at all - that is a ridiculous comment. If consumers stood up for their rights in this way, there would be less ripping off by institutions to begin with.
The banks repay the difference and that is fair. Do you think a court of law would say they would have to refund the lot? No. Of course they wouldnt. So trying to get the banks to refund the lot and using the FOS as a way for them to do it is blackmail.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
What are you talking about? I am not saying the bank should repay everything. Read my message - I asked for a breakdown of the fee, and they paid in full. I did not ask for a full refund. In fact I did not ask for any money. They chose to ignore my request for a breakdown and pay me everything. If for example they could justify £50, then I would have claimed the difference between 175 and 50.
My request for a breakdown is not blackmail, as has been suggested. People should read messages more carefully before ranting.0
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