Mortgage Exit Fees successes and failures

gilldee

So we have paid ERC and not a MEAFs? What is the difference between them? Have we not paid too much money to the mortgage lenders?

MarkyMarkD

You've paid an ERC and an MEAF.

The ERC is because you exited a fixed/discounted rate deal before its term was up, because you thought it was financially worthwhile to get a cheaper rate elsewhere. If the ERC was less than the total saving in interest charged (not payments) over the remaining fixed/discounted term, then you made a sensible decision and haven't lost anything. If the ERC was MORE than the total saving in interest charged (not payments) over the remaining fixed/discounted term, then you made a poor decision and should have stayed where you were - but that poor decision isn't Kensington's fault.

There is no limit on the amount that can be charged in ERCs; as long as you are charged what was set out at the outset, there is nothing wrong and nothing to claim.

Similarly, there is no limit on the amount that can be charged in MEAFs, as long as you are charged what was set out at the outset, there is nothing wrong and nothing to claim. The only possibility of reclaiming with MEAFs is where the amount charged on redemption is MORE than you were told up-front; in such cases the excess MAY be reclaimable (but even then only if the lender cannot justify the increase by reference to their actual costs).

princessfufu

Many thanks Martin and all. One quick call to halifax and refund on its way. Ps could not manage to find a landline or freephone number for halifax to do this.

Walter_Sobchak

Just called Halifax and they are promising to check the amount I paid back in June 2004 and will give me a refund if I was charged incorrectly.

Bertyblunt

Can anyone advise a contact address for EGG Mortgages - i had my account with them in 2007 and dont have the paperwork available !!

SuperSaver01

Have just phoned the Halifax, and they have stated that as my mortgage with them was terminated in June 2008 I won't be able to claim back any of the £175 MEF. Surely this fee is a bit hefty considering the FSA stated they should be charging around £60?

Baking_Mad

Hi,

can anyone tell me how long the mortgage companies keep their records for?

We had mortgages with 4 different companies between 2002 and 2007 and I only have the reference number for the last one

If I was to phone the companies would I be able to get the reference numbers just by our name and the address of the previously mortgaged property?

Baking_Mad

SuperSaver01 wrote: »

Have just phoned the Halifax, and they have stated that as my mortgage with them was terminated in June 2008 I won't be able to claim back any of the £175 MEF. Surely this fee is a bit hefty considering the FSA stated they should be charging around £60?

Sounds strange. If I'm reading Martin's quide correctly they reduced the MEAF to £0 post Jan 2007. We had a mortgage with them as well and paid £175 exit fee in April 2008. I'm keen to hear what other people think

ming

Result!

Phoned RBS Mortgage Centre on Tuesday 06/03/12 to ask for refund of difference between sealing fee of £75 quoted when we took out our mortgage in 2002, and the £225 we were charged when we switched in 2006, they took details and said I should hear back within five working days.

Received a letter dated 15/03/12, advising they were refunding the full £225 as a gesture of goodwill, and the money was credited to my account on Friday 16/03/12.

So, a great big thank you to Martin and all at MoneySavingExpert for the tip.

noodles64

is the recemption fee only paid back to you if the lender has increased it from what they originally were charging or do you get it back if you were charged it, i'm getting confused now!! :cool: