Mortgage Exit Fees successes and failures

gaspode38

Phoned Halifax after finally digging out our old roll number. Told that because it was over 7 years ago they would need a letter. Sent a letter in not really expecting anythign to come of it (thanks for the template!). Got a letter back to say they were looking into it and expect a reply within 6 weeks.

Reply came yesterday (about 5 weeks after I started process iirc) and they said that they were sorry i was unhappy and to expect a cheque in 10 days for the £75 (full fee charged).

Needless to say; I'm thrilled!

keep up the good work, MSE

- Gaspode

Helenf

Hi all

I aked the Abbey National (now Santander) to refun the MEAF from my last property. I gave them my date of birth, address, date we sold the property but could not give them a mortgage account number as I do not have that info. After 2 weeks they repleid saying they could not find me or the property...surely a large company can find these details??? Is it just a fob off???

normusic

As a result of this article I have approached all my previous mortgage lenders. Up until now I had not paid much attention to this so this was a real eye opener as you will see. I have to admit that I did not check any of my statements at that time, and left it to run thinking that all would be administered correctly - and it was to a large degree - except for one provider.Unfortunately that provider has cost me a lot of money. I shall elaborate:

Bank Of Ireland - best customer service, quickest replies and quickest resolution. They agreed (on the second offer of settlement) to give me the overcharge and the interest =£54.39.

Halifax slower response but have refunded the total payment of £40 fee paid.

Northern Rock - last to respond. When I checked my statements, I was amazed at the amount of charges I paid. Between 2000 and 2005 I paid a total of £2863 in administration charges, but this is not the worst. I believe they have also charged me an early repayment charge of £1907.60 and added it to my mortgage. In the same month I have also got a charge for £250 Mortgage Review Fee - which says that I had changed the deal I was on at the time to a better?? deal. My assumption is that they have given me a better interest rate, and then charged me for the early redemption, before opening the new account. I have written to them asking them to explain exactly what has happened. The reply was that they are not obliged to look at this as there is a 6 year ruling on this from the FSA. Basically they have not been able to justify the charges, they have just quoted the rules. I am going to continue questioning this situation, but if there are any ideas from anybody to help me with this then I would appreciate any help.

Regards,
normusic

dunstonh

I believe they have also charged me an early repayment charge of £1907.60 and added it to my mortgage.

Which shouldnt be a shock to you as you agreed it when you took the mortgage out and when you repaid it.

I have also got a charge for £250 Mortgage Review Fee - which says that I had changed the deal I was on at the time to a better?? deal.

Quite normal. There are usually fees charged when changing mortgage deals.

My assumption is that they have given me a better interest rate, and then charged me for the early redemption, before opening the new account.

the lender doesnt change your deal on a whim. It stays on the deal you purchased until you ask them to purchase another deal. They then post you the contract with the terms and conditions in simple text and a clear section on charges which you then sign to if you wish to proceed.

You are the driver in buying a mortgage deal. Not the lender.

I have written to them asking them to explain exactly what has happened. The reply was that they are not obliged to look at this as there is a 6 year ruling on this from the FSA.

There is a 3 year/6 year rule. You have 6 years from the date of the issue or 3 years from being reasonably aware of the problem. So, as it was over 6 years ago, that falls foul there. As you would have been provided details on your statement, redemption statement and contract of the fees involved at the time, it is reasonable to assume the 3 year rule wouldnt apply either.

Basically they have not been able to justify the charges, they have just quoted the rules.

There is no requirement for them to justify them.

I am going to continue questioning this situation, but if there are any ideas from anybody to help me with this then I would appreciate any help.

If you look at how a mortgage deal is bought and the requirements involved, it is not logical to believe that they changed they deal on a whim. You asked them to do it. So, that then leads us to ask why did you do it? You need to look at why you did it and how you did it as I fear you are looking at this backwards at the moment. For what has happened they can charge as they have and there is nothing wrong with that at all. So, who was involved in your changing your deal and why was it changed? If there are issues there then the 3/6 year rule can be ignored.

I suspect though, that trying to persuade someone that you didnt know you changed your mortgage deal is going to be a tough ask when anyone who has changed a mortgage deal will know, it cannot happen without signatures and generation of a documentation.

andrea21

I read about this last night and telephoned my bank this morning. They told me I was entitled to around £110.00 which may take some time to arrive but even so.....worth enquiring about !

Jon_C

andrea21 wrote: »

I read about this last night and telephoned my bank this morning. They told me I was entitled to around £110.00 which may take some time to arrive but even so.....worth enquiring about !

Similar success story from me.

Took a chance and rang First Trust yesterday regarding a mortgage I repaid early circa 2005. Had no documents (and to be honest I had no idea what I had been charged) so they took my details and said they'd get back to me.

They have just called back to say I was overcharged £110 and they will refund it within a few days.

THANK YOU MSE :-D

rowie1

c&g sent me a letter telling me they had charged me too much when i changed mortgage last year, got a refund without asking or knowing i had been overcharged :-) might go through my previous re mortgage's to see if there is more refunds due..

Walter_Sobchak

Have just received a letter from Halifax telling me that I shall be receiving a cheque in the post for £100.

Many thanks Martin!

BaconandEggs

We had a mortgage with Northern Rock from early 2004 to late 2006. Is it worth putting a claim in as it was over such a short period of time, surely the MEAF did not change?

casian

thank you very much.:beer:
I read your article last week about mortgage redemption fees.
I phoned the mortgage lender and spoke with customer service.
He asked if there had been anything in the news that day as I was the 3rd phone call he had received that day. I said I had read about it on Martin Lewis. O that man was the reply. Well all I can do is thank That Man!
I have just received a letter in less than a week and it states I will receive a cheque for £175.00 within the next week.
Thanks again love your site. xxxxxx