Mortgage Exit Fees successes and failures

Dalvinder

dunstonh wrote: »

That is correct. Buy to let is a commercial activity and the FSA ruling does not apply to it.



Buy to let is a commercial activity. The FSA ruling applied to personal residential mortgages. It did not apply to commercial lending.

In that case with buy-to-let mortgages, the only hope of claiming mortgage exit fees comes down to whether the contract (ie mortgage) permitted the lender to charge the increased fee in the first place. I am also finding that lenders are changing the name of mortgage exit fees and charging an increased fee (from "sealing fee" to "mortgage administration fee". Again will need to check the contract to see what fees the lender said they would charge when the loan is redeemed.

barloo69

lukamc wrote: »

I rang Abbey today and said I wanted to claim back Mortgage Exit fees from the past. I did not have old mortgage account details but do rememeber being charged £225 to close my mortgage 18 months ago even though I took out a new mortgage with them for which i also paid a fee. I queried this with the bank at the time and was told I would have to write to the mortgage department. This site has given me the incentive to pursue my claim but today the reply I got was that they would send me out a claim form and I could put my details on this. Anyone get this response from Abbey?

My situation very similar to yours. Just keep writing and complaining to them asking how they justify the true cost of their admin fees and eventually they will fold and say there fees are correct but will offer good will gesture and give back the fee. (thats what they done with me).

Oh for the negative people on this thread that seem to be pro the banks and their fees for one reason or another. Dont bother posting up how I have stolen money from the shareholders etc because its falling on deaf ears.

Good luck Lukamc and keep us posted when you achieve success.

pondhopper

I wouldn't have known about the Mortgage Exit Fee reclaim entitlement if it wasn't for your article. I repaid my mortgage 8 years ago. I used your template letter and sent it to C&G on 17 Jul 09. Arrived home tonight to find a cheque in the sum of £83+ waiting for me. Many thanks Martin. Question - please. How far back can a claim be made. My elderly parents closed their mortgage some 18-20 years ago. Would they be eligible/entitled to seek re-inbursement?
Pondhopper

dunstonh

My elderly parents closed their mortgage some 18-20 years ago. Would they be eligible/entitled to seek re-inbursement?

Fees didnt really start to rise until 2000 onwards. So, whilst they could attempt to claim you would expect it to be knocked back as it is a) too long ago b) they probably only paid about £25 and c) the fee was probably at that level the whole time or thereabouts (FSA allows reasonable increases).

Clangers

I read your article on redemption fees last week and wrote off using your template to Alliance & Leicester. I paid £295 for an early closure administration charge. They replied straight away, paying back £255 for the difference between the fee in place at the time we took out the mortage and the current rate, plus on year's interest calculated at 8%. Total refund was £275.40 !

Thank you very much for your advice, success.

mgfp

wrote to cheltenham & gloucester to reclaim mortgage exit fee overcharged in 2004 they reply saying they only charged agreed fee to complete mortgage settlement no refund due. Obtained copy from my conveyancing solicitor of completion certificate, sent it to head of customer services atC&G hey presto three weeks later cheque arrives with interest added to amount they did illegally take from MY MONEY. £54.14p not a lot but far better in my bank along with my £140.000 from the sale. the point being why let them get away it, do not take no for an answer yhey signed mortgage deed as i did, a legal document. well done martin carry on the good work

lisahemming

Called Halifax and enquired about MEAF. Took two minutes and lady told me I had been overcharged by £75 and she had raised a refund payment Cheque arrived three days later. RESULT!!!

co123456

A little left field, but still mortgage exit fee related.... I complained to the Ombudsman about my T&Cs being unfairly changed (without notification) and got to the point where Norther Rock offered me £65 compensation. Rather than take the cash, I asked the Ombudsman if he would ask NR to waive the mortgage exit fee of £250..... ie. no 'real' money changes hands. NR said yes.

Thanks to MSE for giving me the idea not to take 'No' as a final answer.

stapo1

I have just received a refund of £100 plus £23.90 interest following a call to the customer service number. This was in relation to a Woolwich mortgage taken out in 2002 and paid off in 2004. Also sending a letter to Bristol & West today regarding a mortgage taken out in 2004 and paid off in 2006 as quoted fee was £150 but was charged £195.

thedon31

I'm a bit stuck.....Basically, I sent a letter regarding my MEAF to my old mortgage company, SPML/Capstone that I left at the end of 2008. I asked for a refund of my final repayment charge. I did not know how much this charge was when I sent a letter. They sent a letter back stating they would not refund this charge as when I took out the mortgage in 2006, the charge of £190 and that had not changed in those 2 years and would not be offering a refund at all.

I'm a bit confused now as how I should handle this, does anyone have any advice? I am not trying to get something for free but as I have read this article, it seems that a justified charge is around £50, not £190.