Mortgage Exit Fees successes and failures

dunstonh

scoper wrote: »

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?

It is tough luck. You are being charged an ERC (not the subject of this thread). If you buy special terms, you agree to a tie in. That is because the lender has to finance those special terms. Usually by investors, depositors and money markets. They still have to be paid their terms if you decide to repay the mortgage early. So, they charge is passed on to you rather than it being passed on to other customers.

missammie

Thanks MSE, browsing this site for info on claiming PPI on bank loans and seen info on claiming mortgage exit fees. Just phoned C&G for claiming back the difference that was in my agreement at time of mortgage 2003 (my statement 2004 said £180) but I paid £225 on exit in 2006, and after about 20 mins on phone they said they would refund £225 by cheque in next 2 weeks!!:j I even asked for interest but they wouldn't as they said it wasn't an error even though I said it was, but hey I'm so happy as I was only expecting the difference. Didn't even cost me a phone call as I used saynoto0870.com to find landline number instead of 0845. Just phoned Santander to see if I could have a partial refund on the £225 they charged me in 2010 but as that was on my mortgage agreement I had to pay it so have put a complaint in about the amount they charge when it should only be about £50 and some banks/BS don't even charge exit fees now. Don't think I'm going to get anything off them but worth a try.

dunstonh

missammie wrote: »

Thanks MSE, browsing this site for info on claiming PPI on bank loans and seen info on claiming mortgage exit fees. Just phoned C&G for claiming back the difference that was in my agreement at time of mortgage 2003 (my statement 2004 said £180) but I paid £225 on exit in 2006, and after about 20 mins on phone they said they would refund £225 by cheque in next 2 weeks!!:j I even asked for interest but they wouldn't as they said it wasn't an error even though I said it was, but hey I'm so happy as I was only expecting the difference. Didn't even cost me a phone call as I used saynoto0870.com to find landline number instead of 0845. Just phoned Santander to see if I could have a partial refund on the £225 they charged me in 2010 but as that was on my mortgage agreement I had to pay it so have put a complaint in about the amount they charge when it should only be about £50 and some banks/BS don't even charge exit fees now. Don't think I'm going to get anything off them but worth a try.

There has been no FSA ruling on the size of the charge. The FSA ruling also stated that it was only the difference. So, Santander havent actually done anything wrong. However, I wouldnt be surprised if they offered you a goodwill gesture as its often cheaper to settle than to argue.

Dont mistake the fact that some lenders have renamed their charge or removed it from the back end to mean you are not paying it. Typically, they have absorbed it into other charges.

missammie

I am hoping that they will give me an offer maybe but if not no worries. Looking back at charges yrs ago they were very low for doing the same thing so maybe they will see my point. My current mortgage with C&G has no exit fees now I am out of the 2 yr fixed rate so but wondering if the cost of taking it out was higher because of this. I have for the last few yrs been hounded by people asking me to claim PPI and charges but just couldn't be bothered but thanks to this site everything is easy and a few claims have gone in.

dunstonh

missammie wrote: »

I am hoping that they will give me an offer maybe but if not no worries. Looking back at charges yrs ago they were very low for doing the same thing so maybe they will see my point. My current mortgage with C&G has no exit fees now I am out of the 2 yr fixed rate so but wondering if the cost of taking it out was higher because of this. I have for the last few yrs been hounded by people asking me to claim PPI and charges but just couldn't be bothered but thanks to this site everything is easy and a few claims have gone in.

If you look at the current fixed rate deals, they are either £995 upfront fee, £1995 up front fee or no fee but higher interest rate. The old C&G fixed rate deals used to be £99 or £199 (or thereabouts depending on date). This is the point I was making about them shifting the exit fee to being paid up front.

alan192

I called Santander they said to write in as old Abbey Account so thought being awkward wrote letter with no hope of getting anything back and low and behold today received phone call from them agreeing overcharged and refunded the whole Mortgage Exit Fee direct to bank by Friday. Oh moved Mortgage in 2007 so pays to ask no matter how long ago :-)

Romorrison

Update - I was awarded interest on this payment of £190 gross, plus a £50 compensation award. Worth pursuing if you are in a similar situation!

Romorrison wrote: »

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:

ropa

I wrote to both Abbey National (now Santander) whom I redeemed a mortgage with in 2001, and also to Alliance & leicester whom I redeemed mortgage with in 2004. Did not have any account or ref numbers, so just gave them my address details and dates.
Anyway I did not expect much, and indeed Abbey (now Santander) wrote to me. and said that without account numbers they could not progress things.
However I have today had a letter from Alliance & Leicester with a cheque for £195 which was the amount that I was originally charged, on basis that they could not find reference to me being made aware of charge at the time I took out the original mortgage agreement.
They did however say they could not pay 8% interest on the £195 a year from 2004, as the refund of £195 is a "goodwill gesture relative to Statement of good practice of mortgage exit admin fees, and no judicial ruling has been made in relation to MEAF's.
Would be interested to hear any views about this......
Is it worth hassle of pursuing through financial ombudsman???
Anyway I am still broadly pleased with overall result......not a bad return for the time to write 2 letters, and cost of 2 postage stamps!:j

[Deleted User]

ropa wrote: »

.
Is it worth hassle of pursuing through financial ombudsman???

The bank have offered you a goodwill gesture without admitting any liability or wrong-doing. If you go to the Ombudsman, the Bank can withdraw their goodwill offer completely and it's hard to see FOS siding with you in the circumstances (as the Bank says, there is no judicial ruling regarding Exit fees). In addition, an Ombudsman referral takes around eighteen months..

dunstonh

They did however say they could not pay 8% interest on the £195 a year from 2004, as the refund of £195 is a "goodwill gesture relative to Statement of good practice of mortgage exit admin fees, and no judicial ruling has been made in relation to MEAF's.
Would be interested to hear any views about this......
Is it worth hassle of pursuing through financial ombudsman???

This is a goodwill gesture. So, interest is not required. You are getting lucky. You won't get more from the FOS as the regulator requirement is that you get the difference, if there is one. You are getting the lot. Push it and they may find the record and see you paid exactly what you should have done and decide to withdraw the goodwill offer.