Mortgage Exit Fees successes and failures

MarkyMarkD

Accept the cheque. It's what you are entitled to.

dunstonh

No explanation of what the closing fee consists of - so in effect, my query remains unanswered.

Shal I accept the cheque or carry on demanding a breakdown of the fee?

They dont have to justify it and they dont have to tell you. It is not a penalty charge and as such the rules applying to penalty charges dont apply to admin charges.

The only reason you can claim back the difference is because the FSA has set that rule. Its not a legal thing.

femmefatale170

Hi everyone.....

I challenged both Northern Rock and C&G about their mortgage exit fees..

C&G were very stubborn about it and refused to refund... part laziness on my part but I didnt challenge them further. PLEASE DO if you get rejected first time.... i suppose they have beaten me because I've accepted their first answer.


As for Northern Rock, they only originally offered £50 being the difference between quoted fees and actually payout. But I challenged them on their policy about a "Deeds Release fee" and other fees being 'amalgamated', and explained that I even felt the Deeds Release fee was an unfair charge (£90 i think it was!). Most of these banks send deeds out to solicitors via a special 'DX' system which is not Royal Mail based and would certainly not cost this much to retrive and sent out.

I asked them to refund £95 being the £50 they offered and a small contribution back from the release fee.

THEY SENT THE CHEQUE!! So although only a small refund it is still £95 in my pocket in a time when every penny counts.

So be persistent - dont cop out like i did with C&G. I wish i had challenged them now and got even more money.

Good luck to everyone who tries to reclaim and thanks to Martin for his endless advice on behalf of the nation! :beer:

linz

Hi,

Can anybody tell me if it's possible to claim a part refund back for a set up fee with an existing mortgage provider, if you say, come to the end of a fixed rate introductary mortgage and pay a set up fee to move onto a different one with the same provider? Or is it only for when you move to different providers?

Thanks in advance

Lynsey

MarkyMarkD

Product fees are never refundable. If you don't want to pay a product fee, simply keep paying SVR or whatever other rate you agreed to in the first place.

dunstonh

Can anybody tell me if it's possible to claim a part refund back for a set up fee with an existing mortgage provider, if you say, come to the end of a fixed rate introductary mortgage and pay a set up fee to move onto a different one with the same provider? Or is it only for when you move to different providers?

That is in effect the same as asking if you can claim your money back from the supermarket because you bought bread and milk last week and dont see why you should have to pay for it again this week. Or perhaps a closer example is if you bought a TV from Currys 5 years ago and now want another TV free of charge.

You are buying a new mortgage product each time and you pay the published retail fees and these are valid.

linz

ok thanks,

bekki0405_2

A lovely suprise arrived to day, a cheque for the full amount of my MEF.
I had written and phoned and written since March, and promised each time that I would receive the overpayment of £50. Eventually, I ran out of patience, so I went throught the small claims, moneyclaimonline. You just need to google it. Anyway, cheque arrive today for the full amount of my MEF plus court costs, £219. I didn't ask for this, but has made my Xmas merrier.
Thanks Martin and team!!:j

Now I am feeling ready to take on the might of the bank charges. Here goes with the financial hardship claim!!!!

MarkyMarkD

It's very unusual for any lender to fail to pay up the correct amount, normally without any need for chasing once they've agreed the amount. Indeed, most would send the cheque, not waste time writing to acknowledge the amount.

Southern Pacific (your lender) are not exactly mainstream so that probably explains why your experience is rather different to the majority.

karenj

Sent a letter on behalf of my parents to Northern Rock. Success, they will refund £195 (the full amount) for the redemption fee they paid. Just sent a letter for ours and waiting for a response.

On another note, dad was paying into a PAP for years and only when I looked at it and realised that he would only be eligible for 50% of the cover as he is over 65, and it was invalid if he wasn't a UK resident. They have lived in Spain for 4 years, so we cancelled the DD and wrote to explain why, then lo and behold, 4 years worth of premiums were credited to his account, totalling £237!! We never expected any payment back of premiums paid, but they paid up, no questions, we didn't ask for it - so try it!!