Mortgage Exit Fees successes and failures

cthecliffs

yes I have recently had an offer but holding off for more, if your original mortgage agreement said less- write to them Abbey (Santander) POBOX 287 Stockton TS17 6QQ, quoting your Mortgage No.

dunstonh

So why does Money saving expert template letter have a paragraph requesting the 8% interest as per the court ruling then??

Just because MSE says something, does not mean it is right. For example, there has been no court ruling. This is not a legal issue and never saw the courts. Some firms may add interest, which is why MSE says ask for it. However, it doesnt mean you will get it.

I just read the FSA publication on this again and there is no mention of interest being required to be paid.

http://www.fsa.gov.uk/pages/Library/Communication/PR/2007/012.shtml

Past customers: The FSA expects lenders to treat past customers who complain about the level of the MEAF they were charged when they exited their mortgage contract in the same way as the firm will be treating comparable current customers. So, for example, if a firm will only charge its current customers the original MEAF, then if a past customer who has paid a higher MEAF to exit complains, he or she can expect a refund of the difference between the actual MEAF paid on exit and the original MEAF.

The FOS will enforce FSA/FCA regulation and findings.

Sally4

Although I agree with dunstohn that you are not entitled to a refund if you paid the exit fee stipulated in your original agreement, I have just successfully reclaimed from C&G in precisely those circumstances. The message must surely be that it is worth asking?

I redeemed my mortgage in 2010 and paid an exit fee of £225. It had not occurred to me to try to reclaim the fee because I knew I had agreed to it.

However, when browsing the MSE newsletter I noticed that the exit fee for C&G mortgages was reduced to £50 in 2011 - so I wrote a very polite letter to C&G asking whether they would consider refunding all or part of the fee on the grounds that the reduced fee more accurately reflected the true cost to them of closing the mortgage.

To my surprise I received an equally polite letter back - and a cheque for £225.

dontgivein

check your mortgage offer and read the small print if their is no mention of discharge fee then you don't pay. i have just beat nram to a pulp.
after a two month battle . their customer service was shocking so i recorded every call i made. i was ready to go to go to the ombudsman and then they admitted they could not find any mention of a discharge fee.
so don't assume everybody pays the discharge fee as they will have you believe, and don't.. let them bully you.

Romorrison

Just to say a thank you to MSE for making me aware of this. I had a mortgage with Alliance & Leicester from 2004 and by the time I left in 2006 I was charged a MEAF of £295. I was browsing the site recently and noticed about reclaiming the fees.

I printed out the template (including the request for interest) and sent it in to Santander thinking I wouldn't get anything. After about five weeks I got a letter asking me to phone a case officer. I did this today and on the phone the advisor said was no mention of the MEAF in my documentation (either that or they couldn't find the agreement) and they agreed to refund the full amount. Happy days :j

Now as they offered me the full amount straight away I completely forgot about the interest. Should I go back and ask for the interest or is that a waste of time?

In any case thanks MSE :beer:

dunstonh

Now as they offered me the full amount straight away I completely forgot about the interest. Should I go back and ask for the interest or is that a waste of time?

They dont have to offer interest. They are already paying more back than they are required to do so. You can ask but be aware that they can withdraw an offer if they feel the amount is going to take them above their floor limit for an auto payout.

wheeze

Coventry Building Society, mortgage taken out 2001 when MEAF was £95, redeemed in 2005 and was charged £195.

Used the template letter and within 6 days received a cheque for £100, being the difference, very impressed with their service and thanks :money:

HAVEFAITH

Hi is it possible claim back MEAF from a lender that dates back more than 6 years.

My lender B&B say the following: " In line with the timescales set by the FCA we are only obliged to consider fees and charges applied to a mortgage account within the last 6 years "

Can i get clarification on this please out there?

Thanks

dunstonh

Hi is it possible claim back MEAF from a lender that dates back more than 6 years.

The ruling from the FCA was to refund the difference only. Not the MEAF itself. This means having the details of what you should have paid and what you actually paid, if different.

The 6 year guideline is because of data protection act and guidance from the regulator that suggests 6 years is a suitable timescale to retain data. If the lender no longer had details, there are required to act on copies of details you may have. So, if you have information on what you paid and a copy of the mortgage offer letter/key features document showing the fee as it was when you bought the mortage (or last deal you bought - as it is that which matters) then they can go by those to see if you paid more than you should.

scoper_2

My current mortgage is only £58k yet they want over £6k to repay it early.

My current lender won't lend to me again, so I'm having to move, despite not wanting to.

£6k down the toilet is a lot for me. At the time I took it out I had no intention of moving but I was a husband, dog and small person lighter then.

Is there anything I can do or is it just tough luck?