Mortgage Exit Fees successes and failures

_Andy_

Jeff - why would you be questioning it? Is the charge different than what you agreed to when you started the mortgage?

phoenix__

_Andy_ wrote: »

Jeff - why would you be questioning it? Is the charge different than what you agreed to when you started the mortgage?

Sorry, I should have been clearer. I was thinking about the statement the guide said "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."

£250 (I can't recall the exact amount) is what is in the contract. I'll find out if they try and charge anything different when the account is closed.

_Andy_

If £250 is what you agreed to then there is nothing to query or challenge is they charge £250.

dunstonh

Sorry, I should have been clearer. I was thinking about the statement the guide said "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."

The FSA have made no such ruling. The position is that if the fee has increased from what you agreed then you are entitled to the difference.

That is what the FSA have told the lenders to do. Nothing more, nothing less.

cairnalva

Recieved £237 from alliance and leicester using your template letter.I was charged £290 to redeem my mortgage in december last year. No hassle no questions.

Deewok

Hi all this is my first post so go easy on me!

My wife and I are separating and have just put our house on the market. We have a 5yr fixed rate mortgage which still has around 16 months to run.

At the end of the MEAF guide it states that if you leave say £50 on your mortgage and leave it open, the interest you pay on that will be much less than any exit fee.

My question is: Can you leave a mortgage open like this, and if so, would the early repayment charges which run into £££s be applicable if I left it open until the 5yr deal expires?

I may be totally naive here but some advice would be grateful!

:j

_Andy_

You're selling the home so you have two options 1) Port it, take it to the new home, avoiding the ERCs.
2) Pay it off including the early repayment charges.

bazzer01

My provious mortage with The Mortgage Buisness ended Feb 08. After giving them a call to ask for an exit fee refund, they sent me a letter which indicated that they charged me £175 which was exactly what the original contract stated. I need to confirm this by checking the contract myself. However, if there is no differnce between what was contracted and what they charged, is it worth me chasing the £175 anyway and whatb would be the best approach? Thanks!!!

wiskaz

hi guys, im new to this so sorry if i mess up,
any hoo, i have just come off the phone to woolwich whome i payed a 285 exit fee to, 2 year ago, now they are not charging one, but they have said i am not intitled to it back as it was in 2007, but i think this may be a fob off, can some one please tell me if i am rite or wrong?

ronniep

Received a cheque for £25 from birmingham and midshires, that was overcharged when we left them early 6 yrs ago 1 phone call and within a week was paid only a small amount, but what a quick and easy process thanks again ml