Mortgage Exit Fees successes and failures

magpiecottage

chall2 wrote: »

I reclaimed my mortgage exit fee successfully with the Halifax but they made me sign something saying I would never claim anything from them again. At the time I was not aware that I had PPI with them and just signed it. They are now refusing to refund my PPI because of the form I signed. Surely this is not good practise, I feel well and truly conned by them, the refund was for around £100 but the would have owed me so much more in PPI..

In 2006, the Financial Services Authority (as was) introduced something called Treating Customers Fairly (TCF). This seeks six outcomes and is still operated by the Financial Conduct Authority.

The last of these is "Consumers do not face unreasonable post-sale barriers imposed by firms to change product, switch provider, submit a claim or make a complaint" (my emphasis).

Attempting to bar you from making a complaint about PPI because you complained about an exit fee seems to me to be an unreasonable barrier.

I suggest you go to FOS and make a complaint that this is a breach of Treating Customers Fairly outcome 6.

This does not mean the policy was missold or that you will win any redress (there are good reasons for having PPI on a mortgage) but it should be properly investigated.

chall2

Thank you Magpiecottage for your good advice, I will be taking it.

msw201

Hi,

I have a mortgage with Mortgage Trust which is part of the Paragon Group. I am currently in a position to pay off the outstanding capital balance one year early due to the maturation of an endowment policy so I asked for a redemption statement.

There is a fee called 'Redemption Sealing' of £150 and another named 'Deeds Release Fee' which is £90.

Although I've done some reading on this matter, I am still a bit confused about it. For example:

"The redemption fee, also known as a discharge fee, deeds fee, exit fee or sealing fee, is basically an administration fee that you will have to pay when you repay your mortgage or move your mortgage from your existing lender."

Also, I read that penalties can be levied if you end your mortgage whilst it has a special deal in effect, ie. lower than normal interest rate or similar such thing.

Well in my case, as I stated, I am paying off my outstanding capital balance just because I can. So would the 'Redemption Sealing' of £150 be a penalty for doing so?

And the 'Deeds Release Fee' is (as in the text I quoted) often lumped in with discharge and sealing fees, but to me seems to be a separate fee for giving you your deeds.

Anyway, does the 'Redemption Sealing' fee in my case look it's a penalty for paying off my mortgage early? And does it seem too high? I can't find my original agreement just at the moment but I suppose I could ask them for a copy of it. And likewise with the 'Deeds Release Fee', does that seem too high or about par for the course? It's just that £240 seems to be a heck of a lot of money for a bit of administration...

Thanks.

dunstonh

Also, I read that penalties can be levied if you end your mortgage whilst it has a special deal in effect, ie. lower than normal interest rate or similar such thing.

That is known as an early repayment charge (ERC). Neither of your charges is one of those.

Well in my case, as I stated, I am paying off my outstanding capital balance just because I can. So would the 'Redemption Sealing' of £150 be a penalty for doing so?

its not a penalty. its a charge.

Anyway, does the 'Redemption Sealing' fee in my case look it's a penalty for paying off my mortgage early?

no.

And does it seem too high?

its in the typical range.

And likewise with the 'Deeds Release Fee', does that seem too high or about par for the course? It's just that £240 seems to be a heck of a lot of money for a bit of administration...

its in the ballpark again.

msw201

Thanks for your reply.

I just want to clarify this:

dunstonh wrote: »

its not a penalty. its a charge.

So if it's not a penalty for paying off my mortgage early, then is it an admin charge for wrapping everything up and would have been incurred anyway if I had let my mortgage run to its full term? Because if the fee is a 'charge' incurred because of early redemption, that, in my mind, is a penalty.

dunstonh

So if it's not a penalty for paying off my mortgage early, then is it an admin charge for wrapping everything up and would have been incurred anyway if I had let my mortgage run to its full term?

Correct.

Because if the fee is a 'charge' incurred because of early redemption, that, in my mind, is a penalty.

As its not an early repayment charge (ERC) then it doesnt really matter. However, if it was an ERC then that would be a penalty for requesting to break the contract terms. Although technically, as the contract allows you to cease it early as long as you pay the early repayment charge then its not really a penalty but a chargeable contract term.

msw201

Thanks very much, dunstonh. That's very useful.

ktjcrosbie

Hi, Please can you advise, I had greAT SUCCESS WITH THE BANK CHARGE REFUND THROUGH THIS SITE YEARS AGO !

I've just gone through 5 years of separation and divorce after several years of that of ongoing debt through ex, I've checked my mortgage fees having sent off fro full list since taking out in 2004 and they reach a staggering 6,504.60

Including, Arrears charge, late payment fee, Formal notice fee, litigation pack fee, unpaid cheque fee, unpaid direct debit fee, solicitor fee, arrears interest debit, Im proud Im now back on track financially and no late mortgage payments however will I be able to claim all of these back if not which are eligible.

Many Thanks

KJ

AmbassadorBamber

Gained refunds going back over ten years
However the approach the different Building Societies have for dealing with it is amazing - some make it a simple process - others..... well??
I thought I was late spotting this on your site but perhaps worth a refresh in terms of raising it's profile with people?
Thanks

sorryitsme

Over the holidays I reclaimed my MEAF of £150 from Barclays including interest, this goes back to 2003. I also did this for my mum.


I complained to Santander about my Abbey mortgage paid up in 2005 and they have refused as they said it time barred so off to the financial ombudsman I go!