Mortgage Exit Fees successes and failures

jimbo5661

Hello guys,

I read this link a bit back and submitted a claim to Nram for a £250 exit fee from June this year.

They sent me the normal holding letter and I wasn't too hopeful to be honest, however they wrote back to me and said that 'although the fee I paid was the same as that quoted when I took out the mortgage, because they couldn't find any evidence of them explicitly making me aware of the MEAF when I took out the loan then as a gesture of goodwill they will refund me the £250 in full plus 8% interest'!!!!

Without going through 100's of pages has anyone else had this type of result?

If you weren't 'explicitly' made aware of the MEAF at the onset of taking out the loan it may be worth putting this in your complaint enter too...

dunstonh

jimbo5661 wrote: »

Hello guys,

I read this link a bit back and submitted a claim to Nram for a £250 exit fee from June this year.

They sent me the normal holding letter and I wasn't too hopeful to be honest, however they wrote back to me and said that 'although the fee I paid was the same as that quoted when I took out the mortgage, because they couldn't find any evidence of them explicitly making me aware of the MEAF when I took out the loan then as a gesture of goodwill they will refund me the £250 in full plus 8% interest'!!!!

Without going through 100's of pages has anyone else had this type of result?

If you weren't 'explicitly' made aware of the MEAF at the onset of taking out the loan it may be worth putting this in your complaint enter too...

Northern Rock are one that give in without argument even when you have no right for a refund. Northern Rock complaints department seems quite happy to dish out refunds on anything at the moment. I guess when it is taxpayer owned, they dont have to care!

You would have been made aware of the charge is it was on NR contracts and key features illustrations. However, you won. So, dont worry about it.

jimbo5661

dunstonh wrote: »

Northern Rock are one that give in without argument even when you have no right for a refund. Northern Rock complaints department seems quite happy to dish out refunds on anything at the moment. I guess when it is taxpayer owned, they dont have to care!

You would have been made aware of the charge is it was on NR contracts and key features illustrations. However, you won. So, dont worry about

Thanks. Just thought I'd share with others to help bolster their chances.

My partner had a Bank Of Ireland mortgage redeemed in 2009. They've already refused to refund based on the fact that the fee was the same as that quoted when the mortgage was taken out.
However, she had absolutely no idea that there was a MEAF when she took it out and didn't even know she'd paid it when she sold her flat.

When she took out the mortgage, it was a case of 'here are the upfront fees, this is what the rate is, after x years its the SVR, sign here, here & here'.... No mention of any other costs or liabilities etc.

With this in mind she's written back using the example given by NRAM and we'll see what happens.

I won't hold my breath though...

dunstonh

My partner had a Bank Of Ireland mortgage redeemed in 2009. They've already refused to refund based on the fact that the fee was the same as that quoted when the mortgage was taken out.

That is the requirement the FSA put in place. You should pay the charge what was in place at the time the mortgage was set up or later deal (if you bought a new deal).

However, she had absolutely no idea that there was a MEAF when she took it out and didn't even know she'd paid it when she sold her flat.

On post October 2004 cases it would be on the key features illustration. Even most pre 2004 mortgage quotes and some offer letters had it. I havent done mortgages for over a decade and I remember seeing them on illustrations back then.

jimbo5661

I appreciate it might have been in one of many of the pieces of paperwork given to her to read/sign, but what I'm saying is that, unlike the headline rate / up front costs etc that she was told about explicitly, this wasn't mentioned to her. She had no idea about it and when taking out the mortgage she was just told to sign various (and numerous) bits of paper.

We all know that we should all read every last t&c, but who really does? And back in the day I'm sure the BOI and many other institutions were happy for her to sign up for their product regardless of their obligation to ensure the customer is fully aware of all of the charges and costs to them, both up front and in this example at the back end of the customer relationship...

They clearly didn't do this and that in my opinion is wrong!

dunstonh

I appreciate it might have been in one of many of the pieces of paperwork given to her to read/sign, but what I'm saying is that, unlike the headline rate / up front costs etc that she was told about explicitly, this wasn't mentioned to her. She had no idea about it and when taking out the mortgage she was just told to sign various (and numerous) bits of paper.

The problem is that the various bits of paper are not small print. They are not hidden away. It is in the key feature illustration laid out nice and clear. It is also in the contract signed. This is a house being purchased with a mortgage. Not an iphone. She needs to take a greater interest. Yes, maybe speed read some areas but there is no excuse for not reading the KFI. It is one of the few things the FSA got right by creating that.

samohtom

Hi. I've recently switched mortgages and my previous mortgage provider charged me a redemption administration charge of £295 upon closing the mortgage. Although in the contract, I believe this to be an unfair contract term as it is an excessive charge for covering the administration involved in closing the mortgage, and they are therefore unjustly enriched. I have written to them several times and received a final response in which they say the redemption administration charge does not just cover the cost of closure of the account. 'The fee also reflects the administrative costs involved in maintaining an account for the duration of the mortgage, as well as the administration costs we incur when closing down a mortgage. For example, we retain staff and computer systems, which enable us to answer any queries you may have, and to deal with the various tasks that need to be carried out on your account (e.g. sending out annual statements, notifying you about interest rate changes, and paying off the outstanding balance). Now although the fee was in the contract, it certainly wasn't detailed that this was what it covered and I would say the name redemption administration charge is in fact very misleading if the above is actually the case. What is the level of financial risk in me taking this to small claims please (other than the £30 it would cost to bring the case)?

Thanks

dunstonh

Although in the contract, I believe this to be an unfair contract term as it is an excessive charge for covering the administration involved in closing the mortgage, and they are therefore unjustly enriched.

You are entitled to that opinion but no-one has succeeded on that front.

I have written to them several times and received a final response in which they say the redemption administration charge does not just cover the cost of closure of the account.

Their response is correct.

Now although the fee was in the contract, it certainly wasn't detailed that this was what it covered and I would say the name redemption administration charge is in fact very misleading if the above is actually the case. What is the level of financial risk in me taking this to small claims please (other than the £30 it would cost to bring the case)?

You can pretty much guarantee losing as it is in the contract you agreed to it and it is unlikely you can show it is an unfair charge. The other side can claim reasonable cost from you.

So_Flo_Bo

Hi I was wondering if anyone could help please? Please excuse my ignorance as i have only just joined! I believe I have a genuine case for mortgage misselling, we were only offered a mortgage with a prime sub lender. We have no bad credit. It is a 10 year fixed mortgage with 5 years to go. Unfortunately, the financial services company we used have now gone out of business (last year). Would anyone be able to shed any light on this please. I have looked into changing the mortgage as I feel ripped off by them and they want 5,000.00 for us to come out of it! Any help would be greating appreciated. Thank you.

jimbo5661

dunstonh wrote: »

The problem is that the various bits of paper are not small print. They are not hidden away. It is in the key feature illustration laid out nice and clear. It is also in the contract signed. This is a house being purchased with a mortgage. Not an iphone. She needs to take a greater interest. Yes, maybe speed read some areas but there is no excuse for not reading the KFI. It is one of the few things the FSA got right by creating that.

My partner got a full refund today of £195! (From the Bank of Ireland) They said that although they didn't agree fully with the above points, they could see my point of view but were refunding as a 'gesture of goodwill'...

Seems like its not just Nram who are paying out...

Don't be out off claiming guys.