Mortgage Exit Fees successes and failures

wilsondean1

I took out a mortgage 3 years ago with c&g for a 5 year deal. Today i called to change my mortgage to a better rate, but too my supprise/horror, apparantly i have a 4% early repayment charge. This is preventing me from changing my rate unless i pay 5 grand to the bank. I was never told about this charge when getting the mortgage & am stuck on a 6.7% mortgage. Hopefully someone has some advice on what i can do to get out of this. I would never have taken it out had i known about this clause. Please help regards dean.

dunstonh

I took out a mortgage 3 years ago with c&g for a 5 year deal. Today i called to change my mortgage to a better rate, but too my supprise/horror, apparantly i have a 4% early repayment charge.

Quite normal with tie in deals. It shouldnt be a surprise. C&G make it clear on their marketing, key features illustration (the most important pre-sale document) and the contract that you signed.

I was never told about this charge when getting the mortgage & am stuck on a 6.7% mortgage.

yes you were. Indeed, it was impossible for you not to have been.

Hopefully someone has some advice on what i can do to get out of this.

You cant get out of it. Its fair, legal and quite normal.

magpiecottage

Wilsondean1 wrote: »

I took out a mortgage 3 years ago with c&g for a 5 year deal. Today i called to change my mortgage to a better rate, but too my supprise/horror, apparantly i have a 4% early repayment charge. This is preventing me from changing my rate

unless i pay 5 grand to the bank. I was never told about this charge when getting the mortgage & am stuck on a 6.7% mortgage. Hopefully someone has some advice on what i can do to get out of this. I would never have taken it out had i known about this clause. Please help regards dean.

I suggest you look at the "Key Facts" document you were given at the time you applied for the mortgage. It will almost certainly be in there.

You might not have known about it but barring it not being specified in that document the only reasons you didn't know is that you were incapable of reading it (in which case you probably could not find your way to post here) or you did not bother to read it - which would be rather foolish.

So your complaint would really boil down to "I was too stupid to read the Key Facts document and C&G (or the broker) should have realised I was stupid".

Do you really want to go public on that?

wilsondean1

I was 20, young and relyed on my broker. Didnt read it which is probably my issue. Really wished that i had read it. Thanks people.

cptncanary

Has anyone had any experience of a successful claim, despite no longer havig their old mortgage details? I haven't retained any of my previous mortgage documentation, as I didn't expect to need it in the future.

dunstonh

cptncanary wrote: »

Has anyone had any experience of a successful claim, despite no longer havig their old mortgage details? I haven't retained any of my previous mortgage documentation, as I didn't expect to need it in the future.

Yes they have. It gets harder the further you go back as many will destroy documents from 6 years plus. However, not all do. Plus, if you are looking much further back than say around 2000 then chances are there isnt anything to refund or a very small amount. It wasnt until around 2003 that the MEAFs started to increase big time.

cptncanary

dunstonh wrote: »

Yes they have. It gets harder the further you go back as many will destroy documents from 6 years plus. However, not all do. Plus, if you are looking much further back than say around 2000 then chances are there isnt anything to refund or a very small amount. It wasnt until around 2003 that the MEAFs started to increase big time.

Thank you Dunstonh. Does this look like a reasonable response, given that I don't have my account details?: -

[FONT=&quot]Dear Sir or Madam,[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Mortgage account address [/FONT][FONT=&quot]Address details given.[/FONT]
[FONT=&quot] [/FONT]

[FONT=&quot] [/FONT]

[FONT=&quot]After the FSA statement on Mortgage Exit Administration Fees (MEAFs), I am writing to complain about the charge on the above account when I exited my mortgage contract with the xxxxxxxxx Building Society, on the property at: -[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Address details [/FONT][FONT=&quot]given.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]In particular I note that the FSA stated “if a past customer who has paid a higher MEAF to exit complains, he or she can expect a refund of the difference between the actual MEAF paid on exit and the original MEAF.”[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]I would like you to check whether the actual MEAF I paid was different from the original MEAF, stated at the start of my contract.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]I look forward for a full response to this letter within 14 days.[/FONT]

dunstonh

cptncanary wrote: »

Thank you Dunstonh. Does this look like a reasonable response, given that I don't have my account details?: -

[FONT=&quot]Dear Sir or Madam,[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Mortgage account address [/FONT][FONT=&quot]Address details given.[/FONT]
[FONT=&quot] [/FONT]

[FONT=&quot] [/FONT]

[FONT=&quot]After the FSA statement on Mortgage Exit Administration Fees (MEAFs), I am writing to complain about the charge on the above account when I exited my mortgage contract with the xxxxxxxxx Building Society, on the property at: -[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Address details [/FONT][FONT=&quot]given.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]In particular I note that the FSA stated “if a past customer who has paid a higher MEAF to exit complains, he or she can expect a refund of the difference between the actual MEAF paid on exit and the original MEAF.”[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]I would like you to check whether the actual MEAF I paid was different from the original MEAF, stated at the start of my contract.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]I look forward for a full response to this letter within 14 days.[/FONT]

Short, sweet and to the point. Just how the perfect complaint should be. Go for it with that.

cptncanary

dunstonh wrote: »

Short, sweet and to the point. Just how the perfect complaint should be. Go for it with that.

Thank you, I'll post the response, when I get one. :beer:

houtini

Just paid off a mortgage with A&L early and been stung for a MEAF of £195. Raised as a complaint with Santander this aft, will update with their decision. Optimistic of at least some if not all of it back after the info and anecdotes on this thread. Great work all.