Mortgage Exit Fees successes and failures

beibhinn

can a secured loan be classed as a mortgage

desperatelysavingsarah

Tried to reclaim a proportion of my exit fee from the Cheltenham and Gloucester (paid £100 in 07) as although I don't have any paperwork (smallprint paperwork, I still have the statements Doh!) I looked at the article which said old fees were £30-50 5-10 years ago. I took out my mortgage in 2003 so hoped it would work.

Got a letter back today that the closing admin charge in 2003 was £100 and as that was what I was charged no rebate was due.

Anybody else had more luck with this kind of time frame? (and this establishment)

andy.m_2

hhmmm, well despite my initial optimism, it would appear that the Woolwich are claiming that they have lost my account details.
yet they have previously stated that they will repay £204.
Should I just proceed to the letter?

MarkyMarkD

Desperately ... the article was written quite a few years ago, so 2003 wasn't "5-10 years ago". Most of the institutions increased their fees most in 2002-2004 so it's quite feasible that yours was £100 in 2003. Forget it.

beibhinn - no. Secured loans are not regulated by the FSA so are not covered by this ruling.

dunstonh

Tried to reclaim a proportion of my exit fee from the Cheltenham and Gloucester (paid £100 in 07) as although I don't have any paperwork (smallprint paperwork, I still have the statements Doh!) I looked at the article which said old fees were £30-50 5-10 years ago. I took out my mortgage in 2003 so hoped it would work.

Got a letter back today that the closing admin charge in 2003 was £100 and as that was what I was charged no rebate was due.

Anybody else had more luck with this kind of time frame? (and this establishment)

So you were told it would be £100 and you were charged £100. Therefore no rebate is due. Its the difference you get rebated.

As Mark says, the article needs updating as the charges didnt start increasing to around 2002/3. Unfortunately, its not uncommon for the articles on this board to get out of date and take a while to be updated. Indeed, you can say that about the internet generally.

VintageBubble

I am new to this site so please forgive me if I am doing this wrong. I am really confused by the forums and keep going round in cicrles within the website!

I had a Halifax mortgage from May 2006 to May 2008. When I changed lenders I was charged a MEAF of £175 by the Halifax. I phoned Halifax on their dedicated line and when I explained what I was calling for the lady went quiet and ummmmed and ahhhhed and sounded genuinely perplexed. I had to explain again and she said that this was something Halifax did a few years ago but she didn't think they were refunding anymore. I told her I had used a dedicated line. Initially she said she was going to look into it as she couldn't find any records of my mortgage despite me giving her the roll number, my address etc. I had the paperwork in front of me and I quoted the fee and she then agreed to investigate the fee.

I received a letter today which states that "the information which accopmpanied your Mortgage offer detailed that a fee of £175 would be payable when you repaid your mortgage, there having been no subsequent increases. I am therefore unable to request for a refund of this fee". Does anybody out there know where I stand? As Halifax have not breached the intial contract, presumably I am indeed not entitled to a refund. However, could I push for the goodwill argument based on the fact that it's a disproportionate fee? Any advice would be greatly appreciated.

dunstonh

I received a letter today which states that "the information which accopmpanied your Mortgage offer detailed that a fee of £175 would be payable when you repaid your mortgage, there having been no subsequent increases. I am therefore unable to request for a refund of this fee". Does anybody out there know where I stand? As Halifax have not breached the intial contract, presumably I am indeed not entitled to a refund. However, could I push for the goodwill argument based on the fact that it's a disproportionate fee? Any advice would be greatly appreciated.

When you took the mortgage you agreed to a £175 fee. When you redeemed it, you paid £175. Therefore you paid what you agreed. Under the FSA ruling on this, you are not entitled to any refund.

It doesnt matter if the fee is disproportionate to what you believe it should be. The pricing was agreed in advance. So, legally they are complying with the requirements.

VintageBubble

Many thanks for your reply. If you don't ask you don't get but I understand the situation. What a shame; I was looking forward to a cheque!

desperatelysavingsarah

Thanks Dunstonh and Marky, I guessed that would be the case but it was worth a shot.

MarkyMarkD

Vintage - the FSA ruling predated the START of your mortgage, so there's no way that you would be entitled to a refund.

Lenders can charge £2m in MEAF if they want, as long as they set it out clearly up front. It's no different to mortgage product fees which are also unlimited and unregulated - as long as they are clearly described.