Mortgage Exit Fees successes and failures

greyhoundcrazy

greyhoundcrazy wrote: »

I just phoned Birmingham Midshires and they looked up our old account. The assistant filled out a form but wasn't able to say what we are owed. She said the form will be passed to the complaints dept who will then pass it to the relevant person to action. She said give it about a week.

We have had a letter offering us £50 back. They say we were charged £150 when it should have been £100.

Thanks Martin and MSE! We'd have had no idea about this otherwise.

MarkyMarkD

@Graham.f.1 - If you redeemed between 2003 and 2007, you likely have a claim with many lenders. There was a useful table of charges here: http://www.thisismoney.co.uk/mortgages/article.html?in_article_id=417037&in_page_id=8 with which you can compare the fee at the start of your mortgage (or when you last switched product) with the fee when you redeemed and claim the difference.

@Plebeian - the mortgage lenders do not necessarily know where you live, given that to have a valid claim you must have redeemed and quite often might have moved house. That's why you have to claim.

@Krissjen - if the mortgage was in joint names when it was redeemed, then the lender is right to repay the MEAF in joint names. They could only have issued a cheque in single names with the ex-partner's consent. If, alternatively, the mortgage had already been transferred into single names prior to redemption, the refund cheque should be in the single name.

If the two partners are not in touch, and not talking, there is no valid way to get a refund because both partners are jointly and severally entitled to it. In which case, the ex-partners either have to talk to each other or forget about the money.

beauty-by-numbers

Would anyone be able to tell me how many years you can go back and reclaim exit fees? and do you need your past account numbers, I have come out of 4 different morgages in the past 9 years would be grateful for any advice.

Many thanks

toshkininny

I'm sorry if this is in the wrong place, please feel free to move to a different place. But my question is could I also claim back the charge by my mortgage provider when I told them I was going to rent my flat out, or is it a standard thing?

It's not much, but it all helps!

MarkyMarkD

@beauty - legally you can go back 6 years, but some lenders will entertain claims for earlier than that. But the fees only increased dramatically around 2003, so for anything over 6 years it's probably not worth claiming anyway.

@tosh - there's nothing wrong with fees for permission to let. That's an optional benefit you chose on your mortgage and they can charge any fee they like for it.

Kaygan

I rang Halifax this morning. I had a mortgage with them from April 2005 until April 2007. Not sure of fees etc. but gave them the account no. The lady on the phone said that because the mortgage was redeemed after February 2007 I would have paid the right amount and was therefore not entitled to any refund. Has anyone else been told this or know anything about it? I have asked for a copy of the final statement and have written a letter to head office anyway in case she's wrong!

maxpat17

Hi Martin,

After having read your articel I rang the Halifax and they confirmed that they can refund me £40 but since my only half to me and the other half to my x since it was a joint mortgage. So got a cheque for £20....Thanks very much....

Moneybox

I adapted the template letter slightly and asked for at least a payment of £77. I also stated that the exit fees were not justified as admin costs were more likely £30. I asked for a payment of £200+ ! This was for a combination of mortgages over a period of 10 years (the last being 2007).

Anyway by their calculations they owe me £157 so got a cheque this morning.

:money: This webpage has saved me £100s and i only discovered it at the end of last year! Cheers Martin and all who contribute on the forums. :T

What happens to all the fees that people don't reclaim?? :mad:

iansussex

Just received cheque for £150 from Standard Life Bank for fee charged back in 2002, when 1999 contract had not specified any fee for redemption.

Many thanks Martin:j

emeraldbugle

Halifax 1998-2000, should have paid £40 and paid £75, refund of £35

:T :money: :j


Just phoned C&G 2000-2002, should have paid £50 and paid £90, they will ring or send a cheque, lets hope it is at least for £40.