Mortgage Exit Fees discussion

Burty

Hi, I've been charged a £499 "conversion fee" by the C&G, my fixed term mortgage came to an end so we renegotiated another deal, the C&G say this fee is payable to cover the difference in the bank rate and their rate and the fact they have to "buy" their rates from the Bank of England. Am I having the wool pulled over my eyes?
I am new to this forum and would love some help on this one!

suhail_2

Hi everyone!

I have a mortgage with MAS (Mortgage agency services) and am paying a high level of interest (Around 7.25%) as I could not get a better deal due to a poor credit rating that I have. As interest rates are ever increasing I am having to bear the burden of paying more money which, quite frankly, I dont have. Why is it that I have to pay a higher level of interest for someone who has a poor credit scoring when there's a potential risk of me getting an even worse credit scoring if i dont keep up payments????? I cannot get out of my contract as I am having to pay a high cancellation fee which amounts to 3% of the load should i wish to change!!! Can anyone advise how i can switch mortgages without having to pay the cancellation fee????

thanks

EverDecreasingCircles

My husband and I are in the process of remortgaging with Northern Rock. We will pay off our previous mortgage with C&G. This morning we received the annual statement from C&G which states they will charge us a closing administration charge of £224.98 if we pay off the mortgage. This statement was correct as at 31st December 2006 (as stated in the statement).

So, does anyone have any advice as to how to proceed with this?
Do we wait and see what C&G charge us - being that it won't actually be paid off until after the 28 Feb deadline, or contact C&G now to contest the charge? I have no idea what they were quoting as the closing admin charge when we took out the mortgage 5 years ago.

Thanks,
Jen

leafton

Hi,
I have successfully claimed £100 from Halifax. I am now looking into this for my mum. She took out a mortgage with Natwest at some stage ion the 1990s and paid it off in May 2001. From the chart in Martin's article it seems that she is owed £20 by them. IN May 2001 she took out a mortgage with IF, which was paid off in May 2005. I am finding it difficult to find any information on how she stands with this one. Any help would be gratefully appreciated.

regularsaver1

gozza wrote:

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

As from 28th Feb Halifax customers will auto be charges the fee that appeared on their original mortgage offer at beginning- or most recent offer (if had further advance or product transfer since)

plzhelpmesave!

my sister purchased a house in 1997, and i took out a mortgage for her in my name as i was working full time back then. She sold it in 2001, and we had the mortage with lloyds tsb. Does anyone have any idea of the fees we would have been likely to have been charged in both years?
nothing about lloyds on martins notes, and not sure which dept to contact if lloyds direct??
many thanks for any help!

kyra595

Could anyone tell me if the penalty we paid to Nationwide to exit from a pep/isa mortgage qualifies to be claimed back?

We were sold this in 1998 by Nationwide (they provided us with 3 possible outcomes as to what the market did - 2 showing a profit, and 1 just paying off the mortgage, so this is why we chose this product) and stayed in it for about 3 years (we were fixed for 5), but realised it was doing SO BADLY so opted to come out to a repayment mortage.


From memory, i think we had to pay a penalty charge of about £1500 to come out. Could we claim this back?

We feel No. 1 we should never have been sold this product by Nationwide, and No. 2 we certainly should not have been charged to leave it!!!!!!

Any advice would be of great help.

thanks

JimLFixit

I've written to the C&G relating to 3 accounts I had with them between 1997 and paid all off in 2004. However, 14 days past, and no communication from them. What do I do next?

MarkyMarkD

Burty wrote:

Hi, I've been charged a £499 "conversion fee" by the C&G, my fixed term mortgage came to an end so we renegotiated another deal, the C&G say this fee is payable to cover the difference in the bank rate and their rate and the fact they have to "buy" their rates from the Bank of England. Am I having the wool pulled over my eyes?
I am new to this forum and would love some help on this one!

That explanation is a bit muddled but there's no reason why they shouldn't charge you £499 if you want to switch products.

What they mean (or maybe said) is that they have to cover their fixed rate mortgages with a swap (whereby they pay fixed rates to the market and receive variable rates); the swap rates are probably higher than the rates they are charging you and the £499 covers some of this gap.

But honestly, it's irrelevant why they charge the fee. They offer you the product switch with the fee, you either accept or decline. End of story.

MarkyMarkD

suhail wrote:

Hi everyone!

I have a mortgage with MAS (Mortgage agency services) and am paying a high level of interest (Around 7.25%) as I could not get a better deal due to a poor credit rating that I have. As interest rates are ever increasing I am having to bear the burden of paying more money which, quite frankly, I dont have. Why is it that I have to pay a higher level of interest for someone who has a poor credit scoring when there's a potential risk of me getting an even worse credit scoring if i dont keep up payments????? I cannot get out of my contract as I am having to pay a high cancellation fee which amounts to 3% of the load should i wish to change!!! Can anyone advise how i can switch mortgages without having to pay the cancellation fee????

thanks

You can't. You signed up to a mortgage with an Early Repayment Charge and you are liable to pay that fee if you redeem during the penalty period.

You are paying a high rate because you are higher risk. If the payments themselves cause you to default, that's just how it is - you can only improve your credit score (and reduce your credit costs in future) if you improve your payment behaviour.