Mortgage Exit Fees discussion

abwsco

Can anyone tell me what fees were charged by IF in July 2004. Thanks

MarkyMarkD

joe_strummer wrote:

I changed mortgage last year from one A&L product to another. I agreed to, and paid a £500 fee.
I presume this kind of transaction would not be included in the sort of redemption fees you are now reclaiming?

No, as has been pointed out repeatedly in Martin's original article and in several posts in this thread.

Moolah

Hi, I have a question that I do not think is covered in the ‘Mortgage Fees Article’. The post talks about those that are leaving their loan provider or changing their contract early and being subjected high costs / charges.

We did neither. We re-mortgaged and stayed with the same lender.

My situation is a catch 22. I am with Nationwide and took a Fixed Interest 2 year deal with them 3 years ago. This contract allows overpayment to the maximum value of £500 per month.

When the 2 years came to the end, we had to ‘re-mortgage’, or we could have done nothing and the contract would become the Base Mortgage Rate automatically.

Our Catch 22 we discovered is that if we wanted to move to another lender then our overpayments would not be recognised as ‘overpayments’. The problem with that is as we are using the overpayments as our savings account we would then not have any savings if we moved to another lender. We could have withdrawn our overpayments, then changed lender, but that would have increased the loan amount.

The only option then for us was to either ‘lose’ the savings, or to take another Fixed Interest rate contract with Nationwide. Here’s what really annoyed us - Nationwide charged a Reservation Fee of £599 for basically ‘renewing’ our contract and staying with them.

Even though the new fixed interest rate was a fraction lower (4.48% compared to 5.29%), the charge for ‘renewing’ the mortgage meant it would take between 10 & 12 months before we actually benefited from the lower interest rate.

My question to all this is, would we be able to claim back some, or all of that money back from Nationwide?

Thanks,
Moolah

pthompson

WNBRich wrote:

My problem was that it was a joint mortgage with my exOH, so technically he's entitled to half the refund ... I feel reluctant pass the cheque onto him.

Should I do the right thing?

Yes -- it's his money, so you should pass it on to him. With such a spiteful attitude, I'm not surprised he dumped you in the first place.

franbarlow

I have just checked my paperwork on my remortgages, I have 2, and just wondered if someone out there could clarify what I may be able to claim for. On one I have the redemption fee of £100 which is clear but then the penalties for early redemption were worded as "redemption interest of £3,647.57" and then another interest of £379.44, can anyone tell me if I can claim some of the interest back on the penalties? On the second one I have a sealing fee of £85 but then I've got "clawback £330" and "other debits of £50" - and not sure what those 2 are.

badgolfer

I swapped my mortgage with Abbey National and was charged "product related charge" even though I took out a new Abbey National mortgage. Can I claim this back, it seems harsh.

MarkyMarkD

Moolah wrote:

Our Catch 22 we discovered is that if we wanted to move to another lender then our overpayments would not be recognised as ‘overpayments’. The problem with that is as we are using the overpayments as our savings account we would then not have any savings if we moved to another lender. We could have withdrawn our overpayments, then changed lender, but that would have increased the loan amount.

The only option then for us was to either ‘lose’ the savings, or to take another Fixed Interest rate contract with Nationwide. Here’s what really annoyed us - Nationwide charged a Reservation Fee of £599 for basically ‘renewing’ our contract and staying with them.

Even though the new fixed interest rate was a fraction lower (4.48% compared to 5.29%), the charge for ‘renewing’ the mortgage meant it would take between 10 & 12 months before we actually benefited from the lower interest rate.

My question to all this is, would we be able to claim back some, or all of that money back from Nationwide?

OK taking the points in turn.

(1) The issue of "losing" the overpayments

If you switch lenders, you will obviously lose the benefit of the flexible overpayments you've made with the original lender, IF you just remortgage for the net balance.

But if you switched lenders to another flexible mortgage, for the GROSS amount, you could then overpay on the new one and you would be in exactly the same position as before you moved.

(2) The issue of "renewing" your mortgage with Nationwide

Your terminology here is flawed. You take out one mortgage from one lender, which (normally) has an incentivised rate - discounted or fixed - followed by a standard rate.

Nobody has any right to switch products at the end of their incentivised period. If they do nothing, then they simply pay the standard rate.

There's nothing unreasonable about a lender charging a fee to SWITCH you to a new product - it's not "renewing", it's changing the terms of your contract with them substantially to your benefit and their detriment.

The savings you would make by switching vastly outweigh the £599 and the reduction in Nationwide's profit by you switching also vastly outweigh the £599.

So, no, there's absolutely no case for Nationwide to answer and no basis for "reclaiming" this charge, which you chose to pay when you chose to request a product switch.

jburfot

Hi can anyone please tell me where I can find my MEAF figure. I searched on my mortageg offer and it does not appear to be on there. I recently switched from the Halifax and was charged £175.

any help greatly appreciated

mintymoneysaver

Thanks for this thread.I had two mortgagaes, with Halifax and Cheshire. Can't find my details for any of them so have sent off Martin's template letter and hoping for a reply soon.

sibmx

OK, im still confused.
the fee you can reclaim is.... the money you paid in redemption - the fee in the contract?

I took out a mortgage with a certain young lady who changed her outlook toward me a few months after moving in, leaving me with a 90k mortgage to pay on my lonesome.

We took the mortgage out in sept 2004 and i changed lender in Jun 2005, i had to pay £5500 (!!!!) for an early repayment fee.
I was told there would be a fee but i do not know what this fee is.

Does this amount seem a bit steep fo r a 90K mortgage which was based on a fixed rate for 5 years?

or am i just clutching at straws trying to get a few extra bob?

Cheers