Mortgage Exit Fees successes and failures

dunstonh

As it now turns out, the £295 Charge was incorrect as when I applied for the previous mortgage in July 2004 the Redemption Administration Charge was listed as being £195. (I have copies of this application)

The FSA ruling was that you should be charged the figure that was in place at the time your applied for the mortgage or a later deal, whichever is the latest. So, if it was £195 in 2004 but you bought another deal in say 2007 and it was £295 at that point then they are quite correct to charge you £295. If it was £195 on the last deal you bought then they should refund £100.

So I'm approaching this from two angles. The first that £295 is not a justifiable 'Administration Cost' and is therefore being used as an exit penalty

As already said, they don't need to justify the cost. That is an easy one of them to respond to.

I was given an incorrect redemption quote which effected my decision when looking to move products.

If that was the figure on the last deal you bought from them, then they owe you £100.

W1zz

Success :beer:

Just checked my online banking and noticed that A&L have today credited my account by £295.

I sent them a 2nd letter on Monday (signed for delivery), explaining how the £295 fee is possibly too high to reflect the true cost of closing a mortgage and that any charges must be fair and not penalties. Then went on to say that if they were unable to demonstrate that the £295 fee covered administrative costs only, then I would begin a claim for the full amount, plus interest and costs.

I never mentioned the 2004 - 2006 incorrect redemption statement, that was going to be letter number 3.

So, for the price of a couple of stamps and 30 mins work, don't accept this charge. Even if it was listed in the small print when you took out the mortgage.

dunstonh

So, for the price of a couple of stamps and 30 mins work, don't accept this charge. Even if it was listed in the small print when you took out the mortgage.

Whilst what you do is your choice, you effectively blackmailed them in to paying up.

The sooner the laws in this country are changed the better as its costing business far too much to deal with small frivolous claims. I think you have to be self employed or manage a business to understand the damage that can be done by people trying it on like this.

W1zz

Thankyou for the discussion, but I come to this forum to save money. I followed the MSE guide below, which in turn brings you to this thread.

http://www.moneysavingexpert.com/reclaim/mortgage-fees?utm_source=forum&utm_medium=clicks&utm_campaign=resourcebar

Why ask for all the money back?

It's arguable that MEAF fees aren't justified, the basic concept is that under UK contract law you can't fine someone for breaking a contract, you can only charge them an amount proportionate to the cost of the breach.

The actual administration cost to a mortgage lender of closing down a mortgage isn't thought to be much more than £50 so it's arguable that you needn't pay more than £50, regardless of what your contract says. Therefore writing to your lender, asking it to justify the charges with a full breakdown, and if it refuses asking for a full refund, can work.

dunstonh

W1zz wrote: »

Thankyou for the discussion, but I come to this forum to save money. I followed the MSE guide below, which in turn brings you to this thread.

http://www.moneysavingexpert.com/reclaim/mortgage-fees?utm_source=forum&utm_medium=clicks&utm_campaign=resourcebar

As I said, its a choice. The bank doesnt have to justify it. As the article says, it can work and it did for you.

The bank refunds because its cheaper to refund than it is to prove they are right. My personal opinion is that people shouldnt do that. Whilst a bank is a large entity which is largely faceless and no-one cares for them, what if we start doing that to small businesses and self employed people (which has been happening).

It is just my opinion that if you are in the wrong then you shouldnt blackmail others. If you are in the right, then use all methods possible to get your money back.

bahbah

Hi everyone

Sorry if I posted this on wrong forum, Just wondering if anyone could help me on this one

I took a secured loan wih citifinancial in 2006 and repaid the loan early in 2007. My problem is I have come to realise that I was mis-sold both the ppi and the mortgage guarantee insurance.
I mananged to claim back the ppi but citifinancial said they can not pay me back the MGinsurance as it is different from ppi.

I would like to know if its possible to reclaim the MGinsurance as this was slamed on my loan without me knowing

Thank you

dunstonh

I would like to know if its possible to reclaim the MGinsurance as this was slamed on my loan without me knowing

You cant.

1 - it would not have been added without you knowing.
2 - MIGs whilst uncommon nowadays are perfectly legal and acceptable.
3 - MIGs are nothing like PPI

geoiain

Telephoned Halifax as per instructions - spoke to a very nice gentleman - explained why I was calling - looked at my old mortgage account - told me I was owed £125, which I should receive in 10 days - simples!

Thank you very very much!

erialc39

Hi,

A few weeks ago I noticed the article on claiming back mortgage exit fees. I thought I'd give it a try as I re-mortgaged from Lloyds Tsb to Portman back in 2004. I printed off the sample letter and sent it off. All it cost me was a little bit of time and a first class stamp! I'm pleased to say I received a full refund plus interest, a total of £233, not to be sniffed at!

Thank you money saving expert



:T:j

dfurn

tiptoes27 wrote: »

Sorry - looks like I have posted it in the wrong place.

When I first asked for a redemption figure, I was surprised to see the £199.00 mortgage exit fee although I did then check and it was on my mortgage offer. I did some research on here and some members were discussing ways to avoid paying the fee by letting the mortgage run up to its term date. I could then redeem and not have to pay the exit fee at all. There were suggestions to leave a very small balance which would be uneconomical for the lender to adminster in the hope that they would waive the fee. The general cencus of opinion was that it would be worth writing to the lender to tell them my plans and see what they said.

Hi I know this is a little off topic but just to comment on the poster's dilemma with YBS as written above. I too was in the position that I was going to end up leaving a small balance on my YBS mortgage and wait for the term end, which would have been an annoying 19 years. However if you check YBS' quoted fees you can change your term for £50. So I phoned them up, changed my term to two months, paid the £50 by cheque (how old-fashioned) and when I get to the end of my term there will be no early repayment fee. Should work for you!