Mortgage Exit Fees discussion

rooo

I saw the Money Tips email come in last night and decided to check the details on my last Re-mortgage which was with The Chelsea.

In my original Mortgage Offer (2004), and Terms and Conditions Booklet, the Sealing Fee was £100. However, when I switched last April (2006), they charged my £175. It's not a huge amount of money, but I would rather it be in my pocket than theirs, so I am definitely going to give this a go!

toonfish

lavinia wrote:

I'm still trying to get my head around this one. Please you can advise me as to whether this includes claiming for an Early Repayment Charge?

In April 2002 I had a mortgage with Cheltenham & Gloucester (named sub account 1) and a home improvement loan (named sub account 2). After coming into some inheritance, we paid off our sub account 1 (main mortgage). We were however charged £2,196.27 as an 'Early Repayment Charge' plus £1,647.33 in interest, even though we still had the second sub account running with them.

In C&G's mortgage handbook, it didn't state an exact amount - it reads "Any early repayment charge (sometimes referred to as early redemption charge) helps cover our costs if you end or change the agreement, or you repay all or a significant part of the outstanding balance, during the early years of the loan)"

I can't see that it needs over two thousand pounds to cover their costs, but some advice as to whether you think we could attempt to claim any/all of this back, would be greatly appreciated.

Many thanks

it doesn't cover early redemption penalties, just increased closing fees.

kt

michaels wrote:

Martin
I always think you should credit some of the people on the forums who have already 'blazed a trail' with respect to this. My first experience was over a year ago with A&L who had put their charge up from 150 to 295 during the 2 years I was locked in. I got a refund as reported on the threads but with help I think from lisy_loo (I think) who was probably the first - plus I seem to remember there was a reference to a newspaper article with a standard letter.
Michael

I too would like to thank existing moneysavingexpert - dfarry for his help in assisting me to reclaim back in full my final repayment charges from the Woolwich. It took me 5 letters (using dfarry's as a template) but it worked. MarkyMarkD was also helpful in advising us to reduce our mortgage to virtually nil whilst we were in negotiations. Carry on the good work and THANKYOU

seletar

I presume this also covers when you get to the end of a mortgage and you
are charged an extortionate amount before the mortgage is closed ?
I think the Halifax charged me £225 when I finished paying for my mortgage
a few months ago.Does anybody have a clue what the mortgage closure amount
with the Halifax was 18 years ago !!!

toonfish

seletar wrote:

I presume this also covers when you get to the end of a mortgage and you
are charged an extortionate amount before the mortgage is closed ?
I think the Halifax charged me £225 when I finished paying for my mortgage
a few months ago.Does anybody have a clue what the mortgage closure amount
with the Halifax was 18 years ago !!!

2 shillings and sixpence

MSE_Martin

To the trail blazers.

Absolutely thanks does go to them and well done to them; I am constantly thankful to the amazing contributers to the forums.

My reason for doing it this way though. is the FSA announcement has fundamentally changed the game. By announcing that it expects companies to give the money back, it adds a great strength to all claims and will hopefully turn this from a 'flight' to a 'flow'

prudryden

1998 January

Just checked. For anyone's info. Abbey charged £55 (not chargeable in Scotland or Northern Ireland) for discharge of morgage at the end of its term. This included preparation and sealing of the deed and reassigning life policy (if necessary) AND forwarding of deeds to you by recorded delivery.

However, in addition, there was a deeds handling charge of £65 which applies upon redemption of your mortgage. The fee covers the cost of holding your deeds in a secure storage facility for the life of the mortgage and allowing solicitors to borrow them during the mortgage and when you redeem.

What is the difference between the two charges? Sounds similar to me.

SOURCE: Abbey two page brochure of charges. Couldn't find any reference to this brochure or exit charges in loan offer.

nmunday82

Hi there,
I was after some advice please...
You may curse me when i say this but... 14 months ago i got a Northern Rock "Altogether" mortgage (5 years fixed over 30 years), my girlfriend and i put everything on it, fees,charges,home improvements,a debt i had left over, solicitors etc. (Obviously thinking we'll be very happy together etc etc)

The girlfriend has now decided shes "unhappy & shes changed" and has move back with her parents and whilst we are still talking i cant afford to pay the mortgage alone and she is going to pay her half of the mortgage but we want to sort the situation out asap, decorate the house neutrally etc... Anyway, Northern Rock want £3294 early repayment fee, along with the closure fee of £250 and they also chuck in £1000 (bonus incentive) that has to be repaid if the mortgage doesnt last over two years?

Ideally we will sell, i will rent fresh and let it be a very hard (emotional & financial) lesson learnt, what im wondering is there anyway of avoiding the £3294 fee? After shelling out £4544 to northern rock and estate agent fees etc we'll be over £7k down off of any potential profit. (will get house valued to see impact,when we've tidied it up a bit)

Thankyou for your help/or listening to me rant ;-)

jonbg

Hi, I have 4 mortgages that have been redeemed over the last few years

Halifax start Dec 95 end Feb 04 (paid £75)
Natwest start Feb 04 end July 05 (got this one it states £50 and I paid £225)
Skipton start Jan 00 end May 01 (paid £45)
Abbey start May 01 end Dec 04 (paid £225)

I have most of the paperwork and can tell what I paid to redeem them all but don't have the original listing that stated the charge at the start.

I'm not actualy clear on which start figure I should be comparing to.
Are the original figures for 10 years ago in martin's table right for me to compare to even though some of my mortgages started later than that or do I need to ask the building societys?

Bernard_Coleslaw

Does anyone know what the situation is if you've changed your mortgage arrangment partway through?

I will have signed up when the MEAF with my lender was less than £100, 11 years ago. But two years ago I changed products, (same property, same lender, etc) but signed new terms and conditions that quoted a new (higher) MEAF of £195 as part of the deal.

All the guidance from Martin talks about being able to claim back the difference between the current MEAF and the original one. However, I wonder if, by agreeing to a new MEAF in-between, I can only claim any difference between the current MEAF, and this interim one?

Am I making sense?