Mortgage Exit Fees successes and failures

dunstonh

Hi there, I have been made aware that Mortgage Exit Fees of over £50 are illegal

That is not the case.

Can someone shed some light pls.

Front end of Mortgage was Product Fee of £995
Application Fee of £99
Transfer of Funds Fee of £35
Solicitor fees of £415

Nothing wrong with any of those.

Lloyds Tsb are wanting £2203 Early repayment Charge, now what i don't understand is that as far as i can read an Early repayment charge is just the same as an exit fee

It is not the same as an exit fee. They have arranged fincance via the money markets, depositors and investors to cover the cost of your deal. If you break the contract, Lloyds will have to suffer the loss or pay the fees to financiers. So, you are quite correctly charged the costs rather than passing them on to other customers.

, however although i am only changing lender not necessarily paying off a mortgage early (although i know technically im borrowing off one lender to pay off another)

You are not changing the mortgage but you are changing the way the deal is financed.

I also don't beleive that Lloyds did the best they could for my partner when he took the mortgage he did only have a short period of time to get a mortgage and in short they have ripped him for what they can, he has impecable credit and he has a steady income with a corporate Giant yet they put him on a 6.3% mortgage in 2009.

Perhaps he should have seen a mortgage broker/adviser then rather than seeing a bank clerk who will just present the deals they have available for him to pick.

The fees are outlined in the mortgage aggreement but none of them are highlighted or in bold (something else i am aware that is a must)

That is also not correct.

I just think the fees on this are exceptionally high both at the start and at the end of the mortgage

The fees at the end are not high. They are quite fair and lawful and understandable.
If you dont like the fees up front then dont buy that mortgage. Lloyds have every right to charge what they wish for a mortgage. A high fee tends to result in low interest rates and targeted for larger borrowers. Maybe a low fee/higher interest rate is better for you.

plus he has ppi on it which i'll be looking into and it states in his aggreement (Insurances that must be taken through Lloyds TSB - PPP of £38 per month, now im sure this is illegal in itself as it did not have to be through Lloyds) The Aggreement is full of contradictions.

If it is a condition of borrowing then that is allowed.
If the deal purchased was a package where an insurance policy with Lloyds was required then that is also allowed.
What is not allowed is when they tell you it is a condition when it is not (so if it says in writing it is, then clearly it is). Or if it is a condition of lending but not part of a packaged deal, they cannot force you to buy their insurance.

I am not sure where you are getting your information from but it is wrong in nearly all cases.

Babooshki

We are buying a house and transferring the mortgage that we have on our flat as part payment on the new property (and getting a new mortgage to cover the rest with the same lender). Barclays-Woolwich as well as adding the unbelievable 'arrangment fee' have stated that we are also being charged £150 'redemption fee' to move the existing mortgage onto a new property. However, I fail to see how this is a redemption charge or an exit fee since we are not ending the mortgage simply transferring it. I want to know if we have a case to ask them to deduct this (the costs of moving and stamp duty are crippling as it is!) Any advice and thoughts welcome. Thank you.

auntsally40

Just contacted my mortgage provider to find out about my mortgage exit fee. They are checking all 4 mortgages that I've had with them since 1996. Will find out in next few weeks if I have a claim.

Lizbetjane

Just called Barclays and as I Havent any details of our old mortgage with Woolwich. They require me to go into A barclays to prove who I am ??????

dunstonh

Lizbetjane wrote: »

Just called Barclays and as I Havent any details of our old mortgage with Woolwich. They require me to go into A barclays to prove who I am ??????

That seems fair enough. They are required to identify you to a sufficient level before giving out info. If you cant provide those details then going to the branch with documents makes sense.

pd1956

JUST TO SAY SENT OF TEMPLATE LETTER TO HALIFAX, ONLY DETAILS WE HAD WAS CURRENT ACCOUNT NUMBER AND OLD ADDRESS THAT THE OLD MORTGAGE WAS ON. 4 WEEKS LATER CHEQUE FROM HALIFAX FOR £200 AND APOLOGY LETTER.
RESULT.
THANKS TO FORUM FOR INSPIRATION.
:j:money:

susie65

Hi, can anyone advise if I may be entitled to a refund of my NatWest "sealing fee" of £225. My paperwork from when I took out the mortgage in 2005 does say that the fee is applicable on repayment of the mortgage. As the fee is now considerably less am I due a refund of all or part of it. I only paid it off last week. Many thanks

dunstonh

susie65 wrote: »

Hi, can anyone advise if I may be entitled to a refund of my NatWest "sealing fee" of £225. My paperwork from when I took out the mortgage in 2005 does say that the fee is applicable on repayment of the mortgage. As the fee is now considerably less am I due a refund of all or part of it. I only paid it off last week. Many thanks

You are required to pay the fee agreed at your last mortgage deal purchased. If your last mortgage deal was 2005 and said £225 and you have just paid £225 then you have paid the correct amount and are not entitled to any refund.

Magsmedic

Hi Just called NRAM today re closing my mortgage. They wanted £195, for the pleasure. Quoted Martin and after being put on hold for 2 minutes told fee would be waived. Thank you Martin going to put this towards a holiday :beer:

davewalters

I have an interest only mortgage for 15 years. 2 years have nearly gone, which was on a deal, ending in Oct. I have already contacted them for a new deal in readiness, and they have offered a new one, which actually reduces the payments from £340 a month to £300. Great. They sent me the paperwork which was stamped 'no need to sign' as we had verbally agreed it over the phone. Since then, I have just agreed sale of the house, with no further borrowing needed, so I will not need to START the new 'transition' mortgage in October. I phoned to say I could pay it off when the 2 year period ends in October. Fine but 2% early redemption charge will apply. That's nearly 3K! The paperwork says this. UNSIGNED. But too bad as the 14 day cooling off period has ended. The new period of a further 2 years has not even started, and I don't want to it to!!! Do I have any chance? The FOS have started to write to them, Santander. I repeat - I will only pay it off as the current one ends...BEFORE the new one starts.
Thanks, David