Mortgage Exit Fees successes and failures

emphatiC_hanK

I am due to be stung for £195 by Scottish Widows when I eventually decide to pay off my mortgage with them, some time in the next three years. I am already fully offset, and have been for a while.

Although the £195 charge was quoted in their paperwork at the time (I've checked), I already have my deeds and think that to charge this amount is totally unreasonable.

I have tried to query it with them directly already, asking how this is broken down and how they can justify it, but they have played a straight bat (cricketing analogy!) and simply said that this is the amount that is in their terms.

Do I have any justification to approach anyone else (the FSA?) to challenge this amount as excessive either before or after paying it, or, bearing in mind that their terms always showed this amount at the time that I remortgaged (late 2006) do I now just have to grin and bear it.

I can't stand the fact that the bank will be able to get away with charging £200 for something that will not cost them anything like that (unfortunately I wasn't quite as savvy at the time that I remortgaged.)

Any advice or similar experiences would be appreciated....

dunstonh

Do I have any justification to approach anyone else (the FSA?) to challenge this amount as excessive either before or after paying it, or, bearing in mind that their terms always showed this amount at the time that I remortgaged (late 2006) do I now just have to grin and bear it.

No you dont have anyone else to approach. The FSA ruling was quite clear. You pay what your contract says. The FOS work to FSA rulings.

Remember that this fee is not just an admin fee but a retail fee. Some lenders paid more up front, less at the end whilst others had it the other way around (to encourage you to stay and buy deal with them).

cptncanary

cptncanary wrote: »

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

I got a response from one of my two enquires. According to their documentation, they didn't charge me the £90 exit fee, when I moved my mortgage two years ago. So it looks like I've profitted from their lack of organisation already.
Still awaiting a response from my 2nd letter.

jjww_2

Leeds and Holbeck mortgage exit fee success:

Recieved a cheque back for £25 (not much but better in my pocket than theirs) for mortgage that I paid off in 2001.

Contract stated exit fee should have been £50 but they charged me £75.

Awaiting response from Birmingham Midshires now due before 18th Oct.

houtini

houtini wrote: »

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.

UPDATE - They wouldn't budge. So I've raised it as a complaint with the Ombudsman. Which costs A&L / Santander £250 regardless of the outcome. So they could have saved themselves £55 by just being nice. Hey ho, they know best....;)

dunstonh

houtini wrote: »

UPDATE - They wouldn't budge. So I've raised it as a complaint with the Ombudsman. Which costs A&L / Santander £250 regardless of the outcome. So they could have saved themselves £55 by just being nice. Hey ho, they know best....;)

Good on Santander. Typically firms will often pay up to save money but when consumer sites start highlighting that they start to put their foot down and take a stand against being blackmailed.

MarkyMarkD

houtini wrote: »

UPDATE - They wouldn't budge. So I've raised it as a complaint with the Ombudsman. Which costs A&L / Santander £250 regardless of the outcome. So they could have saved themselves £55 by just being nice. Hey ho, they know best....;)

Great - so another bit of the FOS's time and resources wasted, delaying valid claims still further. And an unfair theft of £500 (not £250) from Santander's shareholders.

Try reading the agreements you make, rather than trying to dishonestly wriggle out of them later, houtini. :@

chickalittle

Having switched mortgage lenders 4 times in the last 10 years I winged a letter to the Halifax (with whom I had remortgaged twice to during this period) and Abbey/Santander (once). I was delighted to receive a full refund by the Halifax even though I had only requested the difference between the original contractual amount and the actual amount charged at redemption. I had to complete a form for the Abbey but still 2 letters/2.5 weeks and 2 cheques totally £376 in my bank account.....result!

juls1_2

chickalittle wrote: »

Having switched mortgage lenders 4 times in the last 10 years I winged a letter to the Halifax (with whom I had remortgaged twice to during this period) and Abbey/Santander (once). I was delighted to receive a full refund by the Halifax even though I had only requested the difference between the original contractual amount and the actual amount charged at redemption. I had to complete a form for the Abbey but still 2 letters/2.5 weeks and 2 cheques totally £376 in my bank account.....result!

Hi

I have just read your post - Could I just ask we are old Leeds Customers and the halifax took over the leeds we have re-morgaged 3 times once with the leeds and twice with the halifax does this mean we will have paid 3 exit fees which we may be able to claim back? Sorry to ask but what did you put in your letter Only I spoke to a lady at the halifax who didnt seem to know about this.
Eagerly awaitng your reply
Thanks
J:)

_Andy_

juls1 wrote: »

Hi

I have just read your post - Could I just ask we are old Leeds Customers and the halifax took over the leeds we have re-morgaged 3 times once with the leeds and twice with the halifax does this mean we will have paid 3 exit fees which we may be able to claim back? Sorry to ask but what did you put in your letter Only I spoke to a lady at the halifax who didnt seem to know about this.
Eagerly awaitng your reply
Thanks
J:)

If you knew about the exit fees (ie in the mortgage KFI/offer letter) then there is nothing at all to claim back