Mortgage Exit Fees successes and failures

dunstonh

gdawn wrote: »

hi need some help please,i read somewhere that you can reclaim £40 charges mortage company charge you when youre late paying,carn't find where i found this,can anyone help?thans

You can attempt to reclaim it. Some have had success. Others havent. Some have actually ended up with costs allocated to them in the courts. Success is more mixed than it used to be with bank charges.

gdawn

dunstonh wrote: »

You can attempt to reclaim it. Some have had success. Others havent. Some have actually ended up with costs allocated to them in the courts. Success is more mixed than it used to be with bank charges.

Thanks for that,are the letters the same as for bank charges? & will mortage lendar be funny with me as i am in arrears,its GE MONEY ta

mrbilbs

I used the letter template and sent it off to Abbey. They are saying as during the time of the original morgage we took out further borrowing against the property they are justified in charging a higher exit fee from my original agreed fee of £70 (ish).

Can they do this? Is worth arguing the toss? Can a small home improvement loan against the property change the whole T&C of the original mortgage?

dunstonh

mrbilbs wrote: »

I used the letter template and sent it off to Abbey. They are saying as during the time of the original morgage we took out further borrowing against the property they are justified in charging a higher exit fee from my original agreed fee of £70 (ish).

Can they do this? Is worth arguing the toss? Can a small home improvement loan against the property change the whole T&C of the original mortgage?

Yes they can and they are correct to do so.

The FSA ruling was that they should refund the difference between what you paid and what was agreed when you took the mortgage out or if you revised the terms (i.e. new deal), whichever is later.

mrbilbs

GGGrrrr

mcoulter1983

Hi, my wife & I will be moving home next month. We will be moving to Abbey as our Mortgage lender. However, we are still with Northern Rock in a fixed rate until November next year. Therefore, we apparently have to pay an early repayment charge of £3200! Can anyone give me advice to see if there is anyway this could be reduced ?
Thanks, Matthew

dunstonh

Can anyone give me advice to see if there is anyway this could be reduced ?

Normally no. You take on a special deal with the proviso that you stay tied in for a period or pay a penalty if you move the mortgage elsewhere. However, there has been some movement for those on the "bad" side of NR where they have waived fees in some cases.

MarkyMarkD

Mainly where the new borrowing is for a fair bit more than the old borrowing, because they won't advance the extra money so are blocking your portability rights.

far2812

Brilliant Martin - yet another success story - received a refund of £275.00 from West Brom BS.

THank you thank you thank you!!!!:j

jlg1

Hi everyone,

Just to greport another success story

After finding Martin's article this morning - I hunted out my old mortgage info.

I luckily found my old Woolwich mortgage info from 2006 and the solicitors letter detailing redemption charges.

The offer stated we shoud have paid £195 and we actually paid £275 (Final Repayment Charge).

I phoned the Woolwich - they said at first this was admin charges we didnt pay anything extra. I was gonna give up at that point.

I then took a break - and phoned again! LOL got someone on who said I was refunded £80 into my account shortly after we re-mortgaged- It never happened. Phoned my bank they didnt put anything in the account (I ordered my bank statements).

Then I phoned the Solicitor - they said to contact Woolwich directly.
Determined to get something back I phoned the Woolwich - after a 10 minute call the guy confirmed we should have been refunded £80 (as the mortgage was in joint names) my wife had to confirm shre was happy with this (I did this on her behalf).Apparently this is why it hadnt been done - was news to me?

He confirmed we would get £80 + interest (£90 approx) I was jumping for joy! LOL

We never win anything or get money back on anything so this was like winning the Lotto!!!! LOL

Has made me think about being very careful about charges etc.. in future.

Has made my day!!!

Thanks Martin I will be addicted to the site now!! LOL

James