Mortgage Exit Fees successes and failures

dunstonh

'm a bit confused now as how I should handle this, does anyone have any advice?

Your mortgage offer said £190 and you paid £190. In accordance with the FSA requirements you are not entitled to any refund.

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.

The article is misleading. That is Martin's opinion only and does not match that of the FSA who made the ruling. It's not a penalty charge with and is in the contract. So, there is no real need for them to justify it.

orie0505

Just received £200 back from C&G for an exit fee paid three years ago.

This includes £25 interest at 1% over base rate. What I haven't seen anyone mention in this thread before is that any interest you receive is gross (i.e. before tax). C&G draw attention to this in their letter and remind you that, if you're a tax-payer, you should pay tax on this interest. This would be either on a self-assessment form, or by contacting your tax office to get a revised tax code for the year. I hadn't thought of this when I requested compensation for lost interest in my letter, and trying to get through to the tax office for what is a very trivial amount of tax is a bit of a waste of time. In hindsight I would probably not have bothered asking C&G for interest.

SCAMPIDOODLE

I have exited 3 motgages in the last 8 years. I have so far got back £190 from Bradford and Bingley, £49 from Abbey and am currently awaiting reply from Nationwide. Thanks Martin!!

MarkyMarkD

orie0505 wrote: »

Just received £200 back from C&G for an exit fee paid three years ago.

This includes £25 interest at 1% over base rate. What I haven't seen anyone mention in this thread before is that any interest you receive is gross (i.e. before tax). C&G draw attention to this in their letter and remind you that, if you're a tax-payer, you should pay tax on this interest. This would be either on a self-assessment form, or by contacting your tax office to get a revised tax code for the year. I hadn't thought of this when I requested compensation for lost interest in my letter, and trying to get through to the tax office for what is a very trivial amount of tax is a bit of a waste of time. In hindsight I would probably not have bothered asking C&G for interest.

Or simply spend around 30p writing to them in a letter. Not so much effort, really!

karenelainehughes

pondhopper wrote: »

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

Can you tell me how long you waited after sending the initial claim letter to C&G, I wrote to them 23rd July, it's now 11th August and they haven't replied... I'm not sure whether to phone them and chase it up or whether to wait a while longer...?

Mancy

I am currently in the process of changing my 18 year old mortgage (I know, I know!) from C&G and they've informed me the exit fee will be over £500.

Would peeps suggest that I query it now, or pay it and claim it back?

Thanks
Mancy

dunstonh

Would peeps suggest that I query it now, or pay it and claim it back?

C&G exit fee is not £500. Not unless you are including an early repayment charge in there for redeeming during a tie in period. Check your offer letter (the last one issued, not the original) and it should say on there.

MarkyMarkD

I don't understand how you would have an MEAF of over £500 unless you have multiple mortgage accounts and C&G is one of the very few lenders who charge per account, not per mortgaged property.

Or does the £500 include - say - a part-month's interest as well as an MEAF?

Iggle_Piggle_2

Just got cheque for £75.00. Took three letters. Well pleased!

rosebud54uk

Rang C&G yesturday about a mortgage i had 4 years ago, did what it said on martins website. Rang them told them i wanted to claim back an exit fee on an old mortgage. I gave them the details and they said YES we charged you £225 overcharged by £125 it should have bee £100. They still had my details and are going to repay the amount overcharged (£125) plus interest £146 directly into my bank account. It was easy peasy. :j Thanks Martin