Mortgage Exit Fees successes and failures

Noz

no worries

mayb_2

Those of you chasing the Mortgage Trust for refund of MEAFs may be intereted in the letter they sent to me today.

"Your request for a refund of fees incurred during the redemption of your loan has been reviewed in light of the recent statement made by the FSA.

The statement made by the FSA, however, relates only to loans regulated by the FSA e.g. loans which completed after October 2004. Unfortunately , your loan does not fall under the jurisdiction of the FSA and, therefore there is no obligation to refund the amount requested.

We regularly review the fee tariffs and the level of fees reflect the administrative and operational costs involved in serviceing mortgage accounts. However, as a gesture of goodwill we will refund the amount of £100 which is the difference between the amont charged at redemtion and the fee tariff in operation at the time the loan was taken out.

Accordingly a cheque will be issued under separate cover."

Now I could do with some help here. How much of the FSA regulation stuff is true? 2004 does not appear to be a significant date in any one else's applications for a refund. Is it not to do with contract law rather than when you took out the mortgage?

I was charged £250 which would make their charges at the time £150 whereas I believe they were £75 in 2001/2/ - although they charge a sealing fee and a deeds release fee so I may have missed one of them. Can anyone confirm that for me? My mortgage was with Britannic Money at the time - now underThe Mortgage Trust.

Sillygoose has posted that the total fees were £100 seven years ago so would they have been £150 in 2001/2 with the Mortgage Trust does anyone know when and if they went up for Britannic Money?

Thanks for any help.

MarkyMarkD

It's not contract law. The FSA, as regulator, have told the lenders how they want them to behave, but they don't have the power to change the law.

I think that Britannic Money mortgages are a special case, as that company was AFAIK NEVER regulated by the FSA as it ceased to be a mortgage lender before mortgage regulation came in. In which case, Mortgage Trust's response is probably valid.

The other lenders can't use this argument as their regulator has not given them dispensation to ignore claims relating to pre-2004 mortgages, and their regulator can effectively tell them to do anything it likes.

But in any case, they appear to have paid up what they consider you would be due if the FSA ruling DID apply to them.

anteater

Just got my cheque for £35 from Halifax. I know it's not much, but it was worth the 5 minutes it took to sort it out. Couldn't find the paperwork, so I gave them a call. They looked up the details on their system (took out mortgage in 1996 when MEAF was £40, but paid £75 in 2001), said they'd send a cheque to my new address (have moved again since then) and it arrived 2 weeks later.

Thanks Martin!

savinglikemad

Hi think I have a sucess, sold my house April 2005, cleared mortgage at same time charged £250.00 exit fee, looked at statement Dec 2004 and clearly states to redeem your mortgage you owe blah and exit fee of £110!!!! Could not find thing on original mortgage papers showing any fee, no figures just lots of words. Phoned and qeried difference and was told figure should have been £175 I asked why when statement clearly said £110 was told ok we will refund you £140, waiting for cheque, whole thing took ten min phone call, half hour of paper searching! Women said "Do you know we have had quite alot of people phoning about this recently" I wonder why!

LovelyLisa_3

Just one 5 minute phone call to Barclays and they are refunding me £161. I was quite disappointed it was soooo easy! Ha Ha! Thanks Martin x

mayb_2

Thanks for the response MarkyMarkD but now I am more confused.

This is taken from the original template letter given on the main site by Martin.

"My contract with you stated a MEAF of [INSERT ORIGINAL MEAF], however, I was actually charged [INSERT ACTUAL MEAF]. I believe this unexpected increase does not reflect the true cost to [INSERT NAME OF BANK] of covering the staff and administration costs involved and I believe I have been unlawfully deprived of the money."

How can something be unlawful if it does not break a law of the land? Are you saying the letter is incorrect? It would mean non regulated meant able to break the law with impunity - surely that can't be right. Wasn't it only after this question of legality was raised that the FSA got involved?

I am happy to be £100 better off than I was before I contacted the company (providing I get the cheque) but I would still like to know what their fees actually were.

orientmad

I sent one letter to Northern Rock asking for £150 they came straight back with an offer of £100 which I accepted money should arrive soon

orientmad

Sorry forgot to say Thanks Martin

tee_pee_2

I would appreciate any advise on this matter. I remorgaged to Halifax in May 06 from The Cheshire. I have just check my redemption statement from the cheshire and I was charged a mortgage discharge fee of £125.00 So can I ask them for the £75 to be refunded. I have no paperwork of the mort from Cheshire as I shredded it when I changed over so I cannot check what the orignal fee would have been!

thanks
tee pee