Mortgage Exit Fees successes and failures

ailurophile_2

Best of luck this time,KTF-hope that cheque for(hopefully!)lots of dosh will soon be in your hot little hands!!

mark3923

I sent the template letter from the Money Saving Expert.com site asking Alliance & Leicester what the exit fee was when I took the mortgage and when I moved the mortgage to another company.They sent me a letter on the 6th March stating that the fee was originally £195 and was increased to £295 and enclosed a cheque for £100 to refund the difference. Thanks Martin and the Money Saving Team.

GeorDai

I wrote to Halifax about my exit fee and asked them to justify the fee using an adapted std letter (sorry can't remember where from) but quoted below:

"My contract with you stated a MEAF of £50, however, I was actually charged £175. I believe this unexpected increase does not reflect the true cost to Halifax plc of covering the staff and administration costs involved and I believe I have been unlawfully deprived of the money.

I am therefore writing to ask that you justify your increase in costs in response to this letter or refund me the total fee paid. Additionally, I have calculated £18.67 interest at the statutory rate since I paid the fee and am asking that you add this to my claim, making a total amount of £193.67.

I look forward for a full response to this letter within 14 days."

I got a standard letter reply offering to refund the £125 after I filled in the enclosed acceptance form but no justification of the charges. Wrote back to again (using the prepaid envelope they thoughtfully provided) to ask them to justify the increased charges today I recieved a letter with a cheque for the FULL FEE of £175.

Looks like the banks / building societies are running scared on this and it pays to press them on the initial offer.... haven't decided yet whether to press them for the interest as well (nothing to lose I suppose).

dragontalon

Hi all, phoned Abbey about mortgage exit fee, received template form 3 days later , duly filled in required details and sent back , received £49 cheque in post 7 to 10 days later. First result i have ever had. Thanks Martin.

MarkyMarkD

GeorDai wrote: »

Looks like the banks / building societies are running scared on this and it pays to press them on the initial offer.... haven't decided yet whether to press them for the interest as well (nothing to lose I suppose).

I don't agree.

The lenders aren't "running scared". But they are subject to an unfair Ombudsman charging system which means that it's more expensive for them to take a case to the Ombudsman than to pay up to the customer, even if the claim is completely unfounded.

For what it's worth, I don't see anything worthy in claiming more than you are entitled to, just because the other party will cave in for financial reasons.

GeorDai

MarkyMarkD wrote: »

I don't agree.

The lenders aren't "running scared". But they are subject to an unfair Ombudsman charging system which means that it's more expensive for them to take a case to the Ombudsman than to pay up to the customer, even if the claim is completely unfounded.

For what it's worth, I don't see anything worthy in claiming more than you are entitled to, just because the other party will cave in for financial reasons.

Immediately offering me £125 then upping the offer to £175 when I ask for an explanation / breakdown of the charges suggests to me that they are looking for this to go away quickly / quietly.

As to claiming more than I am entitled to... i think that Hailfax (or any other financial organisation) would be quick enough to reclaim any monies that I owed them (including interest !).

sillygoose

+++++ B*R*I*L*L*I*A*N*T*! +++++

About to switch from MORTGAGE TRUST who wanted to apply:
£150 sealing fee (original £75)
£88 deed release fee (original £35)
some inflation rate over 7 years eh?

Anyway one letter and charges are back to original, so £125 quid odd stays in MY pocket.

The annoying thing is if I hadn't asked they would have happily pocketed the extra without owning up. To me its exactly like a shop owner sneekily double scanning something on the checkout, if he gets away with it he keeps your money, if he gets caught - "oops! sorry it was an accident of course" and gives it back. Unbelievable behaviour from a bank.

Holly_Golightly_2

I took out my C&G mortgage in September 2002 and closed it in November 2005.

C&G refunded the difference between the Closing Administration Fee applicable when I signed the mortgage contract (£90) and the Closing Administration Fee applicable when I repaid my mortgage (£225). I was sent a cheque for £144.55 (£135.00 plus £9.55 interest).

MarkyMarkD

GeorDai wrote: »

Immediately offering me £125 then upping the offer to £175 when I ask for an explanation / breakdown of the charges suggests to me that they are looking for this to go away quickly / quietly.

Nope, I think it suggests that it isn't worth their time arguing about £50 to be honest. Still doesn't make it right to demand more than you are due.

MinMoz

Yorkshire Building Society - mild success!

After waiting a number of weeks for YBS to get back to me they have confirmed that the amount I paid when I left to go to another provider in 2004 was too high (£125).

Got a cheque today for £31.50 - better than a stick in the eye.