Mortgage Exit Fees successes and failures

Jessica_Rabbit1

I've just moved house in May this year. We were in the middle of our 5 year fixed rate Northern Rock mortgage, so we just ported it over. We were charged a new admin fee of £250 (which I can understand) but we were also charged £250 DOM (Discharge Of Mortgage) fee. When I wrote and complained last month, I received a reply stating that the FSA had looked into DOM fees and ruled that they were fair and therefore I wasn't due a refund. I'm rather annoyed as the mortgage was orginally sold to us as a flexible mortgage that could be moved, and yes it can be moved, but they make sure you pay for it!!!!

Anyone had any success claiming their MEAFs from Northern Rock? We were previously with Natwest but when we remortgaged in 2006, I wrote late to Natwest and they transferred the MEAF straight back into my bank account!!

MarkyMarkD

So what if you ported your mortgage?

The £250 fee is for discharge of mortgage. That needs to be done, if you redeem one mortgage and start up another on a different property, even if you are porting your mortgage deal.

sunnylady

Has anyone ever managed to get a mortgage lender to return an early payment penalty fee. I have a relative who moved from the halifax to the abbey, there was a little over a year to go on their fixed rate mortgage and I believe the mortgage is currently somehere in the region of 300K. The halifax charged them £18,000 for early repayment. My relative is too shocked to do anything about this, but I think this sounds super excessive to me. It seems that the Halifax were not transparent in their dealings and did not go into the penalties with them. Only at the end of the transaction were they made aware of the costs involved and by that time the Halifax had already deducted it. Can this be challenged retrospectively?

dunstonh

Has anyone ever managed to get a mortgage lender to return an early payment penalty fee.

No one has ever posted saying they have and there is no reason why they should.

My relative is too shocked to do anything about this

Not as if they didnt know about it when they chose to buy that particular mortgage deal.

I think this sounds super excessive to me.

Why?

It seems that the Halifax were not transparent in their dealings and did not go into the penalties with them

Its on the published terms of the mortgage. Its on the mortgage Key Features illustration in very clear detail and its on the contract offer letter that they sign. It couldnt be much more transparent.

Can this be challenged retrospectively?

Nope. Your relative chose to buy a deal and get a special price on that deal that involved a tie in. They then chose to repay that mortgage early. That costs the lender as they still have to finance that deal and either repay investors (at corporate level) or offset it against savers. Hence the reason why these penalties exist and why they are considered fair and acceptable.

MarkyMarkD

The ERC would have been included on the redemption statement that the lender issued.

If the purchase of the new mortgage was advised, then the adviser should have considered the ERC as part of the advice.

If it was not advised, then the £18,000 was a clear cost of stupidly entering into a major financial transaction without getting advice.

But, honestly, who remortgages without asking their original lender AT THE OUTSET what the settlement amount is, and who does not notice that it is £18,000 more than currently outstanding on the mortgage?

rosebud54uk

MikeJ37 wrote: »

Just phoned Cheltenham & Gloucester and they offered refund of additional amount plus interest straight away.:rotfl:

I have contacted C&G, yes i got a very polite young lady who said i would be getting back the £125 plus interest (£146) straight into my account. Well I waited a few days and No Monney. I rang them back and again a polite young man told me it would be 5 working days. So i waited again. After 7 working days I rang back. Oh no said the young lady we always say 5 - 10 working days. So I gave them the benefit of the doubt and waited and waited NO money. I rand them again. This time i was told that it takes upto 15 days. Aaaaaagh she said it usually takes 15 days and 'younger' employees usually 'trying to keep customers happy' tell customers 5-10 days. It is now 15 days. I am going to call again on Monday if the money is not in my account. Any suggestions for what i shopuld do if it is not.

rosebud54uk

rosebud54uk wrote: »

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

LOL still waiting for it to go straight into my bank account as stated by the very pleasant young lady. made several calls. 5-7 days, 5-10 days and now 15 days.

chickaroonee

DH is getting a refund of £15 from the Chelsea - took one phone call and apparently got to write a letter and they will pay it. Not as much as many but worth it for 2mins work!

zogster

£100 on its way for a 2-minute phone call! Not so successful with Natwest who said I was only charged the £85 that I should have been - can't find any old paperwork on that one so will have to take their word for it...

Thanks Martin!

Frekey

Hi, please can anyone help, I am trying to reclaim a MEAF charged by Halifax RBOS in 1998 (£625), have taken it to the financial ombudsman. RBOS response is that they are only obliged to keep records for six years as as I did not claim within that period they will not take further?

Can anyone see an angle for me to pursue this further.

Many thanks