Mortgage Exit Fees successes and failures

tansitoo

Birmingham Midshires have sent me a cheque this morning for £150. When I took out my mortgage there wasn't a fee for paying off your mortgage. So to say the least I was very cross at being charged 18 months ago when I paid off my mortgage. After reading about these charges on this site, I telephoned with my old mortgage account number, (although I don't really think I needed it) a few days later I had a letter and very simple form in the post. The letter explained what the charge was for, but in this instance they would refund the whole amount (yeah right). Within 10 days of my phone call I have a cheque in my hand. It's brilliant when the underdog wins, so anybody reading this who has been charged or over charged contact the lender, the money is better in your pocket than theirs.

MarkyMarkD

To reply to the posts on this page:

@ gettinonwithit - I think your figures are slightly wrong and you were refunded £145 (as you say) as the difference between £295 which you paid, and £150 which you should. Slightly academic I know, but just for others' benefit.

@Financial_Savvy - A&L used to charge both a deeds production fee and a sealing fee, which totalled £150 when we redeemed in 2000, were merged together and increased to £160 at some later point, then increased to £195 in January 2004 and £295 in August 2004. I'm 99% sure that the £85 you are quoting is not the whole equivalent of the £295 current MEAF, probably because you are missing the deeds production fee element. Indeed, just to evidence that, here's a very old post on another forum breaking down the £160 exactly as I suggest: http://www.themoneybag.com/vb/showthread.php?t=25618

@Gilean - yes, of course. The original MEAF for you is almost definitely less than the £295 you've been charged.

@Elainer - the FSA have NOT said that lenders cannot increase the fee. As Kensington are saying, if their terms say that they can increase the fee and they have good cost reasons for doing so, they can justify this to the FSA (and indeed, they must already have done so, as the 28 February deadline has passed) and then charge their customers accordingly. I don't believe that you'd get anywhere with the Ombudsman in these circumstances, i.e. where a company is operating in accordance with what it's agrees with the FSA as OK.

Hope those comments are helpful.

2girlsmum

:money: :money: Started Halifax mortgage in 2001, and ended it in 2004. Had no idea what Dispatch fee they quoted on original agreement. Found paperwork which said we had paid £100 mortgage discharge fee and £50 Deeds despatch fee. Rang helpline number told instantly that we had been overcharged by £25 for the discharge fee. Not a huge amount, but better than nothing!! Very helpful lady explained that at this particular moment in time Mortgage lenders did not have to include Deeds despatch fee, but this could change in the future. Have to say it was very easy, the Halifax were extremely helpful and no fuss or forms to complete. Have been told cheque will be with me anytime between now and 28 days. Just wish I could find the paperwork for the bank we had a mortgage with prior to the Halifax!!!

MarkyMarkD

Halifax are talking rubbish about deeds despatch fees. The MEAF ruling states that any fee which is charged at the end of a mortgage's life is deemed to be part of the MEAF, and the comparison between what SHOULD be charged and what IS charged should be based on the total of everything which could be considered MEAF at each point in time.

That isn't to say that the deeds despatch fee for Halifax hasn't changed - I don't know whether it has or not - but the explanation that they are giving is not correct IMHO.

PennyPurple

I got £25 back from Birmingham Midshires. My original contract said it would be £75 and they charged me £100.

Very grateful to Martin for highlighting this, and it's going straight into my current mortgage as an overpayment - Every little helps!! :j

Gail_Elias

Thanks to this site I have just recieved £242.00 early mortgage exit fees from TSB PLC. My original mortgage was taken out over 10 years ago. I used one of Martin's letter stating that the original exit fee was £50, in fact when I recieved their quick reply they informed me that I would get back the whole of the £225 exit fee and interest. I received the cheque the next day.
I have a further request to West Bromwich.
I have also about to put together a request to Bristol & West.
I will update you on the responses

This is my first post and would like to say I have found this site very helpful.

DonGrunbaum

A simple letter to our mortgage provider (Norwich & Peterborough BS) using Martin's template and we got £105 back from a fee of £160, within a week. We paid the money off our outstanding mortgage.

isayoldchap

MarkyMarkD wrote: »

Halifax are talking rubbish about deeds despatch fees. The MEAF ruling states that any fee which is charged at the end of a mortgage's life is deemed to be part of the MEAF, and the comparison between what SHOULD be charged and what IS charged should be based on the total of everything which could be considered MEAF at each point in time.

That isn't to say that the deeds despatch fee for Halifax hasn't changed - I don't know whether it has or not - but the explanation that they are giving is not correct IMHO.

They are looking into this for me.Thanks

cch100

If I ever meet Martin face to face I really do owe him a beer or 2. After reading the related article on the weekly email, we wrote to Bradford & Bingley and less than a week later we have a cheque for £160!!

This on top of the £1804 compensation from an endowment provider (Countrywide) after following Martin's advice and using the template letter from "Which"

The guy's a hero!! Cheers Martin!!:beer:

grecophile

Thank you so much for your website/radio advice. I've changed mortgages 3 times. I rang the Halifax and heard that my agreed mortgage exit fee was £45 and I'd paid £45 so no money back there..I wasn't disheartened, just kept going. I rang Bradford and Bingley and was asked to send my 'complaint' (their word) in writing which I did. I soon had a letter back telling me they were sending a cheque for £115! How brilliant! I've now only the Newcastle building society to try.......
:j
And I did! I got £95 back from them with no fuss! Oh I love this web site