Mortgage Exit Fees successes and failures

dunstonh

Disco82 wrote: »

Hey guys, im kind of new to this reclaiming so i was after a bit of advice........... I wrote to my old mortgage lender and requested back my Mortgage Exit Fee (£199), and i have been told im not entitled to this as my contract stated this as £199. However i have also been charged £495 "Loan Completion Fee" - is this something i should still persue or am i wasting my time??

Many thanks

Stu

The FSA ruling was that you should be charged what you were told the charge was when you bought the mortgage (or last deal if you changed deals at any point). So, if you were told it was £199 and you paid £199 then you paid the correct amount. If they had charged you say £250 then £51 should be repaid.

What is the £495 for (i know it says loan completion fee but it could mean something else). Its not something you typically see in addition to the mortgage redemption charge. The name (and amount) suggests a charge taken at the start of a mortgage. Not one you expect at the end. Unless you added it on to the mortgage as a sub account.

Disco82

Thanks Dunstonh, i may be out of luck wih the £199 then

Cheers for your comments, i originally found the loan completion fee on an old statement i had. We took the mortgage out through a Mortgage Adviser - we did nothing else to the mortgage until we moved it off at the end of fixed term. I thought it may have something to do with a commision to the Mortgage Adviser through my Mortgage, but tbh i have no idea

MarkyMarkD

If it was at the start of the mortgage, it is probably a product fee. Such fees are not reclaimable under any circumstances.

vampire99

Hi

After reading the article i phone the Halifax as repaid my mortgage in Mar 09:j, they have said they cannot tell me yet as there is a discrepency regarding the fees, I took my mortgage out in Jan 02, anyone know what the repayment amount was then? as their system is saying i am not due a refund however there is a difference of £100.00 between the amounts? the girl said she will have to pass this on to look in too... has anyone else had this?

many thanks

airforce1

thort id give reclaiming a go, nothing to loose, sent letter to bank of ireland to reclaim exit fees and mortgage PPI, got reply 2day, (got to contact broker to reclaim PPI) BUT, told MEAF was £150 at start, and £245 when i exited mortgage..£95 difference can be refunded..wehey....altho i only get half of that as im now divorced and mortgage was in joint names..but still a result.:xmassign:

billypre

Wrote to Northern Rock as had ben charged £250 fee when originally it should have been £200. I asked for compensation of £50 plus interest which would make it up to £78 or thereabouts,

Received reply that they accept i was overcharged, apologised and as a gesture of goodwill are refunding the WHOLE £250 !!!

Received cheque and cashed in. Well done Northern Rock !!

dunstonh

airforce1 wrote: »

thort id give reclaiming a go, nothing to loose, sent letter to bank of ireland to reclaim exit fees and mortgage PPI, got reply 2day, (got to contact broker to reclaim PPI) BUT, told MEAF was £150 at start, and £245 when i exited mortgage..£95 difference can be refunded..wehey....altho i only get half of that as im now divorced and mortgage was in joint names..but still a result.:xmassign:

If the MPPI is paid monthly and you are eligible for cover, then its an easy complaint rejection for the broker. You will be burning your bridges with that broker if you do complain and possibly other local brokers as well (as many will share information about opportunistic complaints - if they view it that way).

airforce1

maybe i should have mentioned that this was on old mortgage, finished years ago...does this make any difference to your advice. i do not have any mortgage now, nor will i have in the future.:rotfl:

dunstonh

airforce1 wrote: »

maybe i should have mentioned that this was on old mortgage, finished years ago...does this make any difference to your advice. i do not have any mortgage now, nor will i have in the future.:rotfl:

Well, if its pre-regulation (and paid monthly) then it is even less likely to succeed. The CML stated that ASU (as it was called then) should be recommended and taken out.

craighock

SingingDwarf wrote: »

Got £75 back from Britannia :j

When we moved house in 2006, they charged us a redemption fee of £75. Britannia admitted two mistakes in the letter with the cheque:
1) that the redemption fee was actually only £50 at the time :rolleyes:
2) that we shouldn't have paid a redemption fee anyway, as we took out a new mortgage with Britannia at the same time

Result! How do they get away with this in the first place, how many people have been unfairly charged like this and will never know?

I had a similar experience with Britannia with a completely different outcome. I moved home in 2007 and changed from a Britannia variable to fixed mortgage. I was told that the discharge fee was not payable during the phone application as I was moving from one Britannia mortgage to another.

I got the redemption statement through when the application completed and the discharge fee was included. I rang Britannia and challenged it, they denied that they ever waived the discharge fee.

I complained listing dates and times of the conversation,, who i spoke to through the Britannia complaints procedure and again it was rejected and finally took it to the FSA who also rejected it.

So you did extremely well getting that fee back.

Craig