Mortgage Exit Fees discussion

regularsaver1

Halifax's transfer of equity fee is £175. their further advance fee is £299

is mortgage on same property? if not then it is a redemption

topfoz

The table to compare the meaf's 10 years ago with now is a great idea because, like a lot of other people, we can't find our original terms but (sods law) Yorkshire Building Society isn't on the table. Anyone got any ideas what Yorkshire's meaf was in January 1996?

topfoz

Answering my own question! After trawling through the answers on this thread, found a reference to another website with old meafs on it, and found out that YBS were charging £45 up to May 2003, which sounds much better than the £199 that they charged us! Here's a link if anyone else is having trouble remembering their original meaf.
http://www.thisismoney.co.uk/mortgages/article.html?in_article_id=417037&in_page_id=8

MarkyMarkD

regularsaver1 wrote:

Halifax's transfer of equity fee is £175. their further advance fee is £299

is mortgage on same property? if not then it is a redemption

The OP was definitely talking about the same property. I suspect (as I already did) that the fee they are talking about is the ToE fee, not an MEAF, and therefore completely reasonable and acceptable.

RJDH

Information on Woolwich and Alliance & Leicester

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I posted this in the other thread....

Can anyone help me ??

Does anyone know what the exit penalty fees were for Woolwich in January 2000? The threads seem to suggest £95 but cannot be sure. I would like to speak to Woolwich soonest with at least the fees charged at that point as they charged me £275 last year.

Boy am I looking forward to calling their little help line !

Also, the Alliance and Leisdter exit fees around CY 2000 and what they were around 3 years previous in 1996/7

Thanks to all and look forward to hearing from someone

fortyeight_2

my mother has mortgage with halifax since 1985, she is 82, has a good pension and savings, she wants to pay off mortgage early, i reckon she will save about £1000 + in interest? she owes 3,800 over remaining 4 years, halifax want £175 admin fee and £50 to discharge deeds early, I heard martin on radio saying pay off most of balance and leave a small amount on loan which will accrue a fraction of interest in relation to above charges until mortgage term finishes. but then what happens to deeds and charges etc?

Also by leaving mortgage account open and extended beyond original term can she use the mortgage to buy another house say a bungalow if she is no longer capable of climbing stairs etc at her existing house (sell) even at her age?

MarkyMarkD

Some lenders require the payment of an MEAF even at the normal term's end, so there's no benefit (with them) in not paying the loan off early.

Others let you off the charge if the loan runs its full term, in which case Martin's advice holds.

You need to ascertain which approach your lender takes before deciding what to do on this.

There's no real benefit keeping a mortgage open with a view to being able to move house, but maintain a mortgage with the same lender. I wouldn't see this as a reason to delay paying it off.

lantboss

Hi,

In 1994 I bought a house and mortgaged it with NatWest Home Loans at about 75% on a 10 year fixed rate of 8% which seemed attraactive at the time, as I have been used to mortgage interest rates well above that figure in the past.

I could not have foreseen how the rate of inflation was set to fall, which included the bank rate, and throughout the term of the mortgage I continued to pay above the odds at 8% whilst those on variable rates were enjoying much lower rates of 6% and less.

My mother went into a nursing home in 2000 and offered us her house, which we naturally accepted and sold our house. However NatWest Home Loans insisted on charging us a massive 9 months Early Redemption Interest Charge, which amounted to an additional £5401.64!

Whilst I am preparee to accept the gamble I took on a fixed rate was my own responsibility, and therefore have no claim against the bank rate falling, I do feel I was doubly penalised by this early redemption charge.

Under the current climate in banking, do I have any grounds for claiming these early redemption charges were unfair and disproportionate? Or since these were in my original contract, are there no grounds for a claim?

I would appreciate any comments on this.

MarkyMarkD

No, you DO NOT have any such grounds.

When you borrowed that money from NatWest in 1994, they effectively fixed the rate THEY were paying for the funds at 8% (or something similar).

When rates fell, they didn't save any money, and nor did you.

When you settled early, they either had to continue paying 8% (or similar) for the remainder of the original 10 year term, or pay the equivalent amount to remove that liability.

The 9 months' interest penalty you had to pay was nothing compared to that.

If rates in 2000 were around 6% (say - and I can't remember) the cost for them to close out their liability would be about 2% (8%-6%) x 4 years (the remaining term) = 8%.

All you had to pay was 6%.

You got off lightly.

This thread is about MEAFs, not ERCs (Early Repayment Charges) in any case; ERCs are not subject to the FSA ruling and are not (generally) recoverable unless they differed from the amount specified in the original mortgage terms and conditions, which they didn't in your case.

gozza

just to let you know that Halifax have automatically charged me the original fee of £100 when i leave them Thursday 1st. Did'nt have to nag them afterall! nice one!::j