Mortgage Exit Fees successes and failures

LesleyFord

I'm often doubtful when undertaking any kind of complaint and anticipate it becoming a phone queuing reference quoting saga of poor customer service and administration. But nonetheless, I try to be positive and very clear about the specifics of my complaint and what I'd like to see happen as a result. This is one of those occasion where I had little info but it really did paid off...

Having read about your rights to reclaim mortgage exit fees and seen the summary table showing which providers were likely to repay I thought I'd give it a go. My information was scant - Mortgage 1 was with Halifax ran from the late 90's. Mortgage 2 also with the Halifax ran from 2006. I had little more information than that but having run customer complaints (not customer services) they had all the info to hand and could confirm the details. I've detailed what happened next to show you just how simple the whole thing was. I've now received back £350 as a 'good will gesture' and yes it really did take just 22 days and 2 calls to get my money back!

Mortgage 1 - Halifax
Ran from: late 90's
Original 'Mortgage Exit Administration Fee' (as detailed in the contract): £40
Final exit fee paid: £175

Mortgage 2 - Halifax
Ran from: 2006.
Original 'Mortgage Exit Administration Fee' (as detailed in the contract): £175
Final exit fee paid: £175

Day1 - Called Customer complaints. They confirm the mortgages' contracted fees and those actually paid. Said they'd write back within 5 days.
Day3 - Received a letter to say they wouldn't uphold the complaint but would return the difference on fees for Mortgage 1 £135 (£175-40=£135).
Day3 - Also received a letter to say they wouldn't uphold the complaint for Mortgage 2 at all. As I had had some success I thought OK I'd leave it there.
Day7 - Cheque in the post for £135 for Mortgage 1.
Day8 - A guy called to say they were also going to give me back the original £40 for Mortgage 1. I said thank you and reminded him that I was also trying to claim for Mortgage 2. There was a little confusion but he said he'd look into it.
Day14 - Received a letter to say they wouldn't uphold the complaint for Mortgage 2 but would return the all fees, £175, as a good will gesture.
Day17 - Cheque in the post for £40 for Mortgage 1.
Day20 - Had to call to chase my cheque as it hadn't arrived, they said there had been an oversight and it had not been issued.
Day22 - Cheque in the post for £75 for Mortgage 2.

So - 22 days, 2 calls = £350 :-) Overall the Halifax staff were very pleasant and easy to speak to, as if they were expecting you to claim and it was an everyday thing. They put up very little resistance.


(Sorry for any vagueness in this account - it's never wise to offer too much personal data to the web!)

shilts

Hi , my fixed rate mortgage with the A&L ends at the end of January 2010 and i intend to pay off the remaining balance early February when the mortgage reverts to variable rate . Can someone please advise me the cheapest way to do this ? I've read about mortgage redemption fees but surely this doesn't apply if i pay it off whilst on a variable rate . If there are any costs incurred can someone please advise me the cheapest way before i go ahead and pay it off then have the hassle of trying to claim something back , many thanks .;)

Steve_xx

shilts wrote: »

Hi , my fixed rate mortgage with the A&L ends at the end of January 2010 and i intend to pay off the remaining balance early February when the mortgage reverts to variable rate . Can someone please advise me the cheapest way to do this ? I've read about mortgage redemption fees but surely this doesn't apply if i pay it off whilst on a variable rate . If there are any costs incurred can someone please advise me the cheapest way before i go ahead and pay it off then have the hassle of trying to claim something back , many thanks .;)

This is what their website says:

You said:
I am an existing Alliance & Leicester mortgage customer, is there an exit fee on your mortgages?

Our answer is:
As an existing Alliance & Leicester mortgage customer, are subject to a Redemption Administration Charge, currently this charge is £295 (£195 for borrowers who took out their mortgages prior to August 2004 and have not entered into a new or revised contract since that date).

It is this charge that many on here have been successful in reclaiming from A&L. So I would suggest that when you redeem your mortgage that you ask for it to be refunded. The chances are that they will not refund the charge at your first request. Therefore you should follow the detail I gave in post number 3138.

shilts

Thanks Steve , what is the likelihood of this working ???;)

Steve_xx

shilts wrote: »

Thanks Steve , what is the likelihood of this working ???;)

It is highly likely that you will recover the full amount.

shilts

Hi , i have looked through my old paperwork and it seems that when i signed up to this fixed rate T & C's state £295 . Even though i have signed up for this is it still possible to claim back ? Thanks .

Steve_xx

shilts wrote: »

Hi , i have looked through my old paperwork and it seems that when i signed up to this fixed rate T & C's state £295 . Even though i have signed up for this is it still possible to claim back ? Thanks .

People have successfully reclaimed this fee even though it has been stated on their terms and conditions. Many here have taken the view that these fees are excessive for the amount of work involved in closing down a mortgage and they have successfully challenged the fee.

shilts

Thanks , i will give it a go .;)

woodymeg

Hi sent 1st letter on 25th October 09 regarding mortgage redemption figure, got a reply today saying that when we took mortgage out this figure was £93.50 and we paid £199.00 so they have sent the difference of £105.50. I am pleased about this but i also asked for the 8% interest and also a breakdown of the costs that they charged to redeem our account, got neither should i chase them for it or just leave it. Obviously it was them in the wrong by charging us this amount surely i should get the interest back. Any thoughts any one x;)

dunstonh

i also asked for the 8% interest and also a breakdown of the costs that they charged to redeem our account, got neither should i chase them for it or just leave it.

They are not required to give you a breakdown and dont have to add interest. You could push for interest but is it worth the time and money spent getting it?