Mortgage Exit Fees successes and failures

alisoncp

Following Martin's advice, I phoned A&L today asking for the £295 mortgage exit fee we paid in 2008 to be partially repaid. They said that was the MEAF amount in the mortgage contract, which we signed (true). I now have to write to them to ask for partial repayment, as the fee has now gone down to £90.
Any suggestions seeing as we did sign up for this, and have paid it - but would now prefer some of it back?!
Many thanks!
Alison

safestored4

Good luck with your claim but don!t be surprised if you get knocked back as you are relying completely on the goodwill of the bank.

How would you have reacted if the bank had told you that as the charge had gone up since you signed the contract it expected you to pay the higher rate?

potatoefeet66

Even though I have a lifetime tracker at 0.84pc with no tie ins or ERC and lump sum repayments are acceptable there is a final repayment charge of £195.00 when i tried to port my mortgage and reduce balance with profit equity in my home, the lender tried to enforce a £142,000.00 that is one hundred and forty two thousand pounds exit fee, basically the full balance of my mortgage.

I was told stay put or go to another lender. They wanted my product I stayed put. please see my thread on 'mortgage disclosure document'

success or failure you decide. All i know i was robbed and this is not sub prime lending sharks.

_Andy_

potatoefeet66 wrote: »

Even though I have a lifetime tracker at 0.84pc with no tie ins or ERC and lump sum repayments are acceptable there is a final repayment charge of £195.00 when i tried to port my mortgage and reduce balance with profit equity in my home, the lender tried to enforce a £142,000.00 that is one hundred and forty two thousand pounds exit fee, basically the full balance of my mortgage.

I was told stay put or go to another lender. They wanted my product I stayed put. please see my thread on 'mortgage disclosure document'

success or failure you decide. All i know i was robbed and this is not sub prime lending sharks.

Are you actually expecting us to believe that your lender charged you a £142,000 exit fee? LOL

dunstonh

potatoefeet66 wrote: »

Even though I have a lifetime tracker at 0.84pc with no tie ins or ERC and lump sum repayments are acceptable there is a final repayment charge of £195.00 when i tried to port my mortgage and reduce balance with profit equity in my home, the lender tried to enforce a £142,000.00 that is one hundred and forty two thousand pounds exit fee, basically the full balance of my mortgage.

I was told stay put or go to another lender. They wanted my product I stayed put. please see my thread on 'mortgage disclosure document'

success or failure you decide. All i know i was robbed and this is not sub prime lending sharks.

There are no lenders that have a 100% exit fee. You have to be mistaken.

peachyest

I have been approached by a company called norton accord to process a claim against a financial advisor who recommended that I rent my house out and buy a new property 3 months before the crash! Has anyone heard of this company (who want 30% of any successful claim) and can I get it done for free with someone else?

dunstonh

peachyest wrote: »

I have been approached by a company called norton accord to process a claim against a financial advisor who recommended that I rent my house out and buy a new property 3 months before the crash! Has anyone heard of this company (who want 30% of any successful claim) and can I get it done for free with someone else?

Sale and rent is not a regulated activity. So, it would be interesting to know who they intend to complain to when the adviser tells you to take a hike. It is also an area where financial advisers tend not to get involved. How did you pay the adviser, for example? What do the recommendation reports say?

Ignoring the above for the minute, what actually has been done wrong?

is it even a financial adviser? A lot of these property development/buying schemes dont use financial advisers although they try to give the impression you are getting investment advice. As it is an unregulated activity they dont have to comply with the regulatory standards a real adviser would have.

Also, its a strange thing to get a cold call on. Your data is not in the public domain. So, how do they know you have done this and what is it exactly they think you are going to get out of it?

peachyest

They possibly got details from a ppi claim that I won. That's the only possibility I can think of.
They are saying that the fact that I was advised that it was a good idea to rent out our current house and use some of the equity from that property to get a mortgage on a new property (without worrying too much about our earnings compatibility), means that the advisor would have lined her pockets by sorting mortgages to obtain the most profit for her instead of the best deal for us.
This was all done three months before the crash and a total of £50k equity has been lost on the two properties. Obviously there is always a risk as prices can go down as well as up but the fact that we were not offered a choice of deals means our advisor more than likely just tailored the best mortgages to gain the best percentage of payment to her. That's what Norton Accord have said there is a case to answer on.

dunstonh

They are saying that the fact that I was advised that it was a good idea to rent out our current house and use some of the equity from that property to get a mortgage on a new property (without worrying too much about our earnings compatibility), means that the advisor would have lined her pockets by sorting mortgages to obtain the most profit for her instead of the best deal for us.

The adviser would be lucky to earn 0.3% on the mortgage before costs. Its not a big money earner. Plus, if it was a mortgage adviser rather than a financial adviser, they are not authorised to give investment advice. It typically is not something that falls under investment advice either.

This was all done three months before the crash and a total of £50k equity has been lost on the two properties.

Short term paper losses are irrelevant. You expect losses on investments in short term periods. That is not grounds for complaint (even if property was regulated).

That's what Norton Accord have said there is a case to answer on.

I reckon they are talking BS and are going to try a shotgun complaint to see if anything sticks. However, I dont know what rules they are going to say are broken as it was mortgage advice and not regulated investment advice.

Jonesmount6

Has anyone contacted Bank of Scotland, do the same rules apply in Scotland, thanks