Mortgage Exit Fees successes and failures

Orchid_Room

Hi
I have contacted Abbey National who now trade as Santander with regards to claiming my mortgage exit fee. I paid my mortgage up early approximately 10 years ago and cannot remember what I was charged. I was told their exit fee was £50 and acceptable to the FSA. This is not what the table shows.

Has anyone else had this reply? Any ideas? Thanks

dunstonh

I was told their exit fee was £50 and acceptable to the FSA. This is not what the table shows.

The FSA has made no rulings on what is or is not acceptable. It only said that the charge has to be the same on exit as it was when you took the mortgage out or the last deal you bought with them, whichever is later.

So, if they say it was £50 and that is what you paid then you are not entitled to anything back.

jubarnes26

Hi there I am looking for some advice on 2 issues

1) I am about to change my mortgage from Northern Rock to First Direct, closing fee is £250 as stated on original paperwork in 2005 so they have not hiked it and that is the contract I entered into.
However will I have any grounds to try and get them to lower it as it is according to Martin "disproportional" to the work involved in closing mortgage?

2) Prior to Northern Rock I was with Portman BS and changed in April 2005 so that will be 7 years this April - I have no idea what the closing fees were as I no longer have the paperwork, I have a solicitors letter stating the amount Northern Rock paid to Portman but not a breakdown of what was the mortgage and what was fees. Do I stand any chance with this one as it was 6 years ago - I may be able to get the payment reference from my bank . As I have no idea & just suspect I may have been overcharged do I just send a letter saying exactly that and requesting a breakdown then take it from there?

Thanks in advance for any help.

dunstonh

1) I am about to change my mortgage from Northern Rock to First Direct, closing fee is £250 as stated on original paperwork in 2005 so they have not hiked it and that is the contract I entered into.
However will I have any grounds to try and get them to lower it as it is according to Martin "disproportional" to the work involved in closing mortgage?

Martin's opinion is irrelevant. The FSA is the body that matters and they have not ruled it disproportionate. Also, assuming it is disproportionate is wrong as many lenders priced their deals with the terms being spread over the initial cost, the interest rate and the exit cost. Some lenders increased the exit cost to allow you to have lower entry costs or vice versa. So, its not all about work done but how they spread the charges.

2) Prior to Northern Rock I was with Portman BS and changed in April 2005 so that will be 7 years this April - I have no idea what the closing fees were as I no longer have the paperwork, I have a solicitors letter stating the amount Northern Rock paid to Portman but not a breakdown of what was the mortgage and what was fees. Do I stand any chance with this one as it was 6 years ago - I may be able to get the payment reference from my bank . As I have no idea & just suspect I may have been overcharged do I just send a letter saying exactly that and requesting a breakdown then take it from there?

If you dont know the figures then you are going to have to ask them. We cant say if you have any chance as we dont know the figures. if you paid more than the contract, then yes you should get a refund of the difference. If you paid what you should have paid then you wont. Ask them what you paid and what the contract said.

jubarnes26

Thank you for the clear concise advice that I was looking for - I wont bother with Northern Rock then and looking at the historical fees for Portman it doesn't look like it will be a lot maybe £25 - £50 plus interest but worth the time to knock out a letter and price of a stamp.

Many thanks.

ttbko

I only started this yesterday and have already sent off 4 forms for return of PPI's paid and today there are another 3 letters for fees paid for ending mortgages. I have to say, if I dont achieve success, it wont be the end of the world. However, it will be nice to know I checked and no one owes me money! :j

All that said, I'm optimistic (by nature) so watch this space and I'll gladly share my good fortune - should I have any. :beer:

barnsleynanna

I just wondered if someone could advise? I've had a mortgage with the Britannia for 24 years and have stayed with them throughout this period. However I have switched deals at least twice (when a new deal has been beneficial and advised by the lender at meetings). I am pretty sure I have been charged an administration fee over over £250 when I've done this ....can I reclaim part/all of this, or is this a totally different situation to switching to another lender and having an exit fee ? I assume if Britannia have switched me to a different underwriter, then at some point there may have been an exit fee as I've effectively switched one mortgage for another (one time to a 2 year fixed interest deal) and again a few years later (all pre 2007)

dunstonh

I am pretty sure I have been charged an administration fee over over £250 when I've done this ....can I reclaim part/all of this, or is this a totally different situation to switching to another lender and having an exit fee ?

Totally different. You didnt pay a mortgage redemption charge as the mortgage wasnt redeemed. You paid a product charge for buying a new product.

I assume if Britannia have switched me to a different underwriter, then at some point there may have been an exit fee as I've effectively switched one mortgage for another (one time to a 2 year fixed interest deal) and again a few years later (all pre 2007)

It is a mortgage, not an insurance policy. The "underwriter" doesnt change because you buy a new deal. So, your assumption is not correct.

There is nothing for you here as you have not changed lender.

lanney50

Hi Guys I am new to this site it was recommended by a firend,I cannot believe the help and advice I have recieved, after reading the forum posts,I contacted my old morgage provider and asked about the MEAF which to be honest I never knew about, and was pleasantly suprised today to recieve £100 thanks for the great advice guys,fantastic site

lanney50

Hi guys a newbee sorry, after having this site reccomended by a good friend I have been following up some of the the great advice,and I am very pleased to say I have just recieved £100 from the Halifax from when I paid off my morgage,I had never heard of MEAF before reading up on this site so a very heartfelt thankyou guys keep up the good work :j