Mortgage Exit Fees successes and failures

dunstonh

davewalters wrote: »

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

Paperwork does not need to be signed. That is not a requirement and the FOS does not put much weight on signatures anyway.

What you describe is not a MEAF (the subject of this thread). It is an Early Repayment Charge (ERC). These are considered a fair contract term.

Technically, there is no wrong doing here by Santander. You applied for a deal and they have given you that deal. However, I am surprised they were willing to take you on now as the deal may not exist in October. Do, you have a chance? Maybe. Although it would require either a goodwill gesture by Santander or some clerical error to exist for the FOS to rule against them.

sus1

Success with a 2 minute phone call to Halifax. Mortgage redeemed in 2006 & paid £225 sealing fee. After a phone call a cheque is now on it's way for £175.00. :T
I'm now looking at all other paperwork from banks!

kenny62

i paid my mortgage with national & provincial early. but carried on with the endowment with legal and general that ends next year , if i remember they were took over n&p . and cant remember if we paid an early exit fee or not ?
Just done a quick search N&P were taken over by a abbey national 1996 then abbey national was taken over by Santander in December 2004 .
Who do i go for about early exit fees ???

superspudking

Can someone please help me as I'm a little confused.
Iv had a read of the exit fee article and it has a table showing pre and post 07.

I took out my first mortgage in oct 2007. If was with abbey who later changed to Santander. In oct 2011 I changed lender and Santander charged me a redemtion fee of around £250.
Am I able to reclaim this fee? Or not as mortgage was after jan 2007?

Many thanks

dunstonh

I took out my first mortgage in oct 2007. If was with abbey who later changed to Santander. In oct 2011 I changed lender and Santander charged me a redemtion fee of around £250.
Am I able to reclaim this fee? Or not as mortgage was after jan 2007?

If your last agreement signed with them said £250 and they charged you £250 then you paid what you should have done. Its only when you pay more than the agreement that they have to refund the difference. The actual dates are irrelevant.

RonsealGirl

Hi, I used your template to write to the Woolwich who charged £275 redemption fee. They wrote back within a week to say they should only have charged £195, so they refunded the £80 difference, plus interest and as a gesture of goodwill to apologise for their mistake they added a further £100. Thank you very much MSE :T

peter_conisbee

I'm a simple soul and only just starting to understand a bit about mortgages, but need advice.
Having redeemed a mortgage some years ago I was charged the following,
£120 redemption fee and....
£10,897,17 early repayment charge.

I'm assuming that the FSA ruling only covers the redemption fee, and the early repayment fee is just tough on me?

Secondly is an early redemption fee the same as an exit fee? I'm wondering as I have also been charged £2,441.48 for an nearly redemption fee also on a previous mortgage a few years ago.

cthecliffs

I approached Santander regarding our previous Mortgage with Abbey and the MEAF paid on exit of £225. in 11/2008 I sent your template and also requested the interest at 8%.= £335. I have had a phone call today from Santander CS who offered £99. but I rejected it stating that I requested the above. She stated they as a Company have decided that they don't pay interest, and would come back to me in 24/48hours. I thought it was a court ruling and if so how do I enforce it. Where do I go from here if they continue to refuse the full amount.

dunstonh

cthecliffs wrote: »

I approached Santander regarding our previous Mortgage with Abbey and the MEAF paid on exit of £225. in 11/2008 I sent your template and also requested the interest at 8%.= £335. I have had a phone call today from Santander CS who offered £99. but I rejected it stating that I requested the above. She stated they as a Company have decided that they don't pay interest, and would come back to me in 24/48hours. I thought it was a court ruling and if so how do I enforce it. Where do I go from here if they continue to refuse the full amount.

The FSA ruling was a return of any difference in the fee. I don't believe it mentioned anything about interest (although not 100% as it was a long time ago). You are not entitled to a full refund. Just any difference.

cthecliffs

So why does Money saving expert template letter have a paragraph requesting the 8% interest as per the court ruling then?? There was a £0 charge on the original mortgage and closing was £225 so it is the difference + 8% int per annum! This web page was the first time I found out about MEAF's last week.