Mortgage Exit Fees successes and failures

jayneg_2

Rang Halifax last night and gave mortgage number - got a reply back that they are sending cheque for 125 pounds! Couldnt have been easier! No letter required. Used the telephone number on your web site - Thank you so much (wish the banks were as forthcoming with reclaiming bank charges!!!!!!)

MarkyMarkD

@ Rob2007 - not one thing you have stated is correct (well, apart from the bit where you state that you've been refunded £149).

It's also very bad forum etiquette to post three consecutive posts on the same subject - use EDIT if you have to add more to a post you've already made.

Dunfermline's fee is not illegal. It doesn't breach the Unfair Terms in Consumer Contract regulations. It's not a penalty for breach of contract.

The FSA have ruled that companies which they regulate must comply with their best practice guidelines. In general, this means that companies must not increase their MEAFs from the amount they tell you when you take out your mortgage. Just because the FSA has made this ruling doesn't change the law or make MEAFs illegal.

In particular, it does NOT mean that fees have to reflect their costs. To state that they must is COMPLETELY WRONG.

Your ideas about product switch fees are also completely misguided. Lenders make next to no money during the time borrowers are on discounted/fixed products; they rely on customers paying the standard variable rate at the end of the incentivised period in order to make a decent profit. If you CHOOSE to switch products, lenders are perfectly entitled to charge a fee and it's completely reasonable for them to do so. If you don't want to CHOOSE a product switch, then redeem and remortgage, or pay the SVR - it's your choice.

almond

are going to try to reclaim with leeds and holbeck bs but I rang yesterday
to ask for figures was told I needed to put it in writing.
I have no paperwork we took out the mortgage about 15years ago and
I changed to abbey three years ago after getting divorced.
any ideas what I need to put in letter.

frogeyesimon

One call to Halifax for mortagage that was redeemed in 2004 - £100 on it's way to me. Didn't need anything other than name and address. Easiest £100 ever ! - don't dither - just do ut !!!

justocker

Hi

I received an official letter from Intelligent Finance after me asking for my exit fee back. The letter stated that datails of the fees were included in the initial documentation I signed. Therefore - nothing - will be refunded.

JS

tilburykaren

We took a seven year mortgage out with Abbey in November 1998. The exit fee then was £65. When the mortgage ended we were charged £225. A quick phone call to Abbey got a really easy form sent to us to fill in. Less than a week after sending it back a cheque for £160 arrived. Dont delay do yours today !!

MarkyMarkD

almond wrote: »

are going to try to reclaim with leeds and holbeck bs but I rang yesterday
to ask for figures was told I needed to put it in writing.
I have no paperwork we took out the mortgage about 15years ago and
I changed to abbey three years ago after getting divorced.
any ideas what I need to put in letter.

Just write to them saying that the fee they charged three years ago was more than the amount they stated when you took out the mortgage. They will work out what's due.

Unless you stayed on the same product throughout the 12 years, your refund isn't likely to be as much as you might think - you are only entitled to be refunded down to the fee level at the time of your last product switch (or further advance, if you have taken one of them).

SusanD_2

SusanD wrote: »

The early exit admin fee with Dunfermline BS was £75 when I took out my mortgage in 2001 and I was charged £150 when it was redeemed in Jan 2006. I sent in the completed template and was disappointed to receive a letter saying that they don't consider that a refund is due and that they are "confident the current amount properly meets the cost to the Society".

Having read all the success stories in the forum here, I wanted to pursue this further. I called their Customer Support only to be told that it was a decision the Society's Board of Directors had taken and that they would not be paying out any of these claims. The only option I have been given is to contact the Financial Ombudsman.

Has anyone got any advice? Or had similar experience?

On a brighter note, a previous mortgage product from the Halifax was dealt with promptly and fairly (as illustrated in numerous posts here).

I've just had a call from the Financial Ombudsman who contacted the Dunfermline Building Society after I complained about their refusal to refund the difference. Lo and behold, Dunfermline have now agreed to pay the £75 difference. Success. Thanks for the advice.

andylou_2

Mortgage exit fee successfully reclaimed from Alliance & Leicester PLC. I used Moneysavings template and 6wks later received a cheque. Only £25 but not bad return for very little effort.

LXGB

Nationwide Fixed Mortgage, 2 year term 2005 - 2007:


1. Originally no fee on Mortgage Offer.

2. Letter received in 2006 saying £90 charge being introduced.

3. Paid £90 upon redemption Jan 2007.

4. Saw the MEAF article, wrote a letter last week.

Result: Recieved a letter back with a Cheque for £90 today!

THANKYOU MARTIN! :beer:


LXGB