Mortgage Exit Fees successes and failures

MarkyMarkD

deemac06 wrote:

Yes you can.
Did you agree to the £90. In writing.
Always follow up a second letter with one of your own and DON'T cash the first cheque.
Ask them to justify the £90. If not, go to the OFT


Good luck

deemac, please don't post such misleading nonsense, especially in your second post ever.

"Did you agree to the £90 in writing". By accepting a mortgage offer which referred to standard mortgage conditions, which in almost every case (except Nationwide's) will have referred to paying an exit charge of some sort, and the amount of which will have been stated in a fees leaflet provided at the time of offer, anyone who has accepted a mortgage has accepted their liability for the attached exit fees.

"Ask them to justify the £90". Cobblers. The FSA have said that there is no reason why exit fees, like any other up-front agreed mortgage fee for that matter, needs to bear any resemblance to costs. Lenders exist to make a profit and they are just as legitimately able to make it on exit fees as on application fees, valuation fees, or any other fee they care to choose.

"If not, go to the OFT". The OFT don't deal with individual customer complaints. The FOS do, but they will just laugh at you if you complain about being refunded your fee back to a level which the FSA have declared, in their opinion, to be both legally acceptable and acceptable from their perspective as a regulator.

MarkyMarkD

lpb60 wrote:

Redeemed my mortgage with C&G last year after my husband died - was a bit shocked to pay £225 to pay it off. However following the Moneyexpert advice I phoned them today and was told I should have paid £90 so will get £135 back plus interest. Thanks Moneysavers.:

It's common practice for lenders to waive Early Repayment Charges (ERCs) in the event of the death of a borrower. I'm surprised that they don't apply the same approach to MEAFs. Were you very clear that the reason you repaid the mortgage was a direct result of the death of your husband?

pompey

tcannabellarose wrote:

Just received a letter from Northern Rock, offering me a refund of £35, from when I exited my mortgage 4 years ago. I was charged £195 to leave, and I have original documentation informing me that it would cost £85 to leave. Are they trying to fob me off? Should I take the money OR should I hold out and push to get the difference? Suggestions on a postcard to.....

I don't have the details with me at the moment but I think Northern Rock had 2 fees that are now amalgamated together. Cannot remember the names but the exit fee would have been the £85 you quote plus another for £75 = £160. They have offered the difference of £35.

Probably worth going back to them to check.

lpb60

MarkyMarkD wrote:

It's common practice for lenders to waive Early Repayment Charges (ERCs) in the event of the death of a borrower. I'm surprised that they don't apply the same approach to MEAFs. Were you very clear that the reason you repaid the mortgage was a direct result of the death of your husband?

Yes C&G had been informed of the death of my husband and when things were sorted out a couple of months later was when I paid off the mortgage...do you think they should have waived the exit fee then? I could go back to them and ask for the whole amount, you think?
Thanks

happycookie

Just got off the phone to the Halifax and they have agreed to refund £100 of my mortgage exit fees. Took 5 minutes max. So much easier than I imagined it to be .:beer:

That combined with the notification that my council tax has been rebanded down makes for a very good money saving days work. :j

Thanks Martin!!!

mcguire6078

How easy was that!!!

Woolwich/Barclays
Called the number published in the Guardian 08000 234 180, gave them my old account number, name & postcode. Advised of refund £145 + £10.17 interest. Took my bank details and cash is now in the bank. Thank you very much.

If only everything in life was this simple....(no men or women jokes)

(Original Mortgage started in 1994 and repaid in Jan 2005)

Greenie67

Result! Closed my mortgage with A&L 2 years ago for which they charged me £295. Contacted them recently to complain and they immediately sent me a cheque for £100. However, I rejected this and they have today sent me an additional £35. So for a few minutes work I'm now £135 better off:beer:

Now what can we claim back next?

MarkyMarkD

lpb60 wrote:

Yes C&G had been informed of the death of my husband and when things were sorted out a couple of months later was when I paid off the mortgage...do you think they should have waived the exit fee then? I could go back to them and ask for the whole amount, you think?
Thanks

I think that they may not have linked the redemption to your husband's death and that they may have waived the fee, had they realised the reason for redemption. I would certainly think it worth asking. Good luck!

debhemsley

can someone just confirm that you can only claim for redemption fees and that the set up fees when you take out a mortgage offer such as fixed/capped you cannot claim those fees

debbie

janeC_4

Thankyou Martin -by chance I read an article in the paper about exit fees and your website and had a look at our paperwork. We paid off our mortgage last August and costs were wrapped up in the solicitor's bill. We asked Lloyds TSB for a final account and there was the exit fee off £225. The original contract mentioned £50 so I rang Lloyds and immediately was told I shouldn't have paid any exit fee and the £225 + interest would be put into my account within 10 days. Within 5 days I was £233 pounds better off.
:j :j