Mortgage Exit Fees discussion

MarkyMarkD

kyra595 wrote:

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

I don't think that you were charged a penalty charge. I think that the value of your PEP/ISA investment was £1,500 less than you'd paid into it and hence you'd lost that money.

I don't see any reason why you should be able to claim that back.

donal_f

Hi - I wrote to my old lender Abbey - about 3 weeks ago - after reading the article in the FT about the FSA's original ruling. Abbey charged me £225 exit fee in 2005 - even though the original contract said £99.

Abbey sent me a form to fill out - and about a week later (today), I received a cheque for £126. I suspect I could hold out for interest on the difference or maybe even claim the original £99 fee wasn't equivalent to the costs Abbey incurred in redeeming the mortgage. However, I'm very happy with the £126 and am leaving it at that. :T

Thanks for all the help and advice on this site! And good luck to everyone in getting their refunds!

Regards,
Donal_f

sakamuka

Hello,
I was also charged £225 by Halifax when i paid off my morgage with them in March 2006. This was broken down into a "RepaymentFee" of £175 and a "Deeds Despatch Fee" of £50. i would also be grateful to know what this figure was 10 years ago, but would also like to ask "are talking about the increase in both these fees collectively, or is just the repayment fee?
Many thanks.

ajk_2

Hi Sakamuka,

I remortgaged to nationwide from Halifax in November 2006 and was charged £175 exit fee. I couldnt find this charge on any paperwork at the time of taking the mortgage and telephoned halifax to complain. I was refunded the whole amount immediately. I would also question the deeds despatch fee, im sure the banks just come up with a random figure with most of their charges.

The £499 fee to set up the mortgage was also a rip off and i wonder how they can justify this.


akhtar

pittcity

donal_f wrote:

Hi - I wrote to my old lender Abbey - about 3 weeks ago - after reading the article in the FT about the FSA's original ruling. Abbey charged me £225 exit fee in 2005 - even though the original contract said £99.

Abbey sent me a form to fill out - and about a week later (today), I received a cheque for £126. I suspect I could hold out for interest on the difference or maybe even claim the original £99 fee wasn't equivalent to the costs Abbey incurred in redeeming the mortgage. However, I'm very happy with the £126 and am leaving it at that. :T

Thanks for all the help and advice on this site! And good luck to everyone in getting their refunds!

Regards,
Donal_f

:rotfl: :rotfl: I did exactly the same and received my £126 cheque this morning too!!:rotfl: :rotfl:

polly_2

Have finally dug out the relavent docs my Closing Admin Charge was £225, but we had an Early Repayment Charge £534.67 we were out of the fixed interest period which is why we switched. so should we have paid for this early repayment charge?? its tantermount to being charged for taking your business elswhere.
the mortgage was with Cheltenham and Gloucester. so can some-one please advise as to which we should claim back the £225 or £ 534.67 or both
thanks Polly

Mike_PH

I am in a similar position having moved from a standard Abbey Mortgage to a offset Abbey Mortgage and they charged me `599 pounds for setting up the new mortgage. In one sense I cant complain because i knew what the cahrge was going to be but can they do that .......?

AHAR

polly wrote:

Have finally dug out the relavent docs my Closing Admin Charge was £225, but we had an Early Repayment Charge £534.67 we were out of the fixed interest period which is why we switched. so should we have paid for this early repayment charge?? its tantermount to being charged for taking your business elswhere.
the mortgage was with Cheltenham and Gloucester. so can some-one please advise as to which we should claim back the £225 or £ 534.67 or both
thanks Polly

The fixed rate may have ended at the time you switched, but for some mortages the early repayment charge period can last beyond the fixed rate period. I guess you'll have to search through your documents to see what the terms were.

amygray

Hi,

I have a query. I took out a First Active fixed rate mortgage in April 2005. This comes to an end this April. I may wish to remortgage with another lender, and wanted to know whether I had exit fees to pay. I hadn't heard of them until now. I phoned First Active and they advised that I have £225 exit fees as stated within my offer document under section 10. I wanted to know whether this was right, as section 10 in my offer document reads as follows:

Early Repayment Charges - If you repay your mortgage in full before the end of your agreed 22 year term, there is an administration fee, currently £195.

There is no other reference in my offer document or the fees and charges leaflet supplied by First Active to indicate about exit fees.

Please advise whether First Active are correct and that I have to pay the £225 if I wish to find a better remortgage with another lender.

ajk_2

polly wrote:

Have finally dug out the relavent docs my Closing Admin Charge was £225, but we had an Early Repayment Charge £534.67 we were out of the fixed interest period which is why we switched. so should we have paid for this early repayment charge?? its tantermount to being charged for taking your business elswhere.
the mortgage was with Cheltenham and Gloucester. so can some-one please advise as to which we should claim back the £225 or £ 534.67 or both
thanks Polly

most people have been successfull with claiming closing admin charge/exit fees so i would claim this.

Perhaps you were tied to the mortgage for some time after fixed interest period, if so i doubt you'd be successfull with this claim.

I got the exit fee refunded after a 5 minuite phonecall.

Good luck and let us know how you get on

ajk