Mortgage Exit Fees discussion

toonfish

jw08668 wrote:

We am repaying our mortgage 9 months early (with Cooperative Bank) as we are emigrating to Australia. We are being charged £6,597. Unfortunatly a repayment penalty clause of 3% was in the contract. Is their anyway we could claim that this amount is unfair ? I have called the Cooperative Bank twice but they have stated that we signed the contract with this clause and as such we have no right to expect a refund.

they are right I'm afraid, it was an inherent condition of the loan

l1brarian

New here -

Does anyone know what the redemption charge for the fee free long term flexible mortgage with the alliance and leicester was in 2005.

I paid mine off and was charged £500

mrs_bunny

first message - bear with me!! Need advice from those in the know please; started abbey mortgage in 93 with (then) husband. Split up 98 but his name was never removed from mortgage. repaid abbey 2005 when me + new hubby moved + switched lenders. What are the chances of getting any exit fee refund paid to me, even though 2 names were on mortgage?? Any help greatly appreciated.
Ps have tried 0800 0320617 for abbey contact - was told the correct number is 08456 000346.

MarkyMarkD

l1brarian wrote:

New here -

Does anyone know what the redemption charge for the fee free long term flexible mortgage with the alliance and leicester was in 2005.

I paid mine off and was charged £500

I think you need to check the breakdown of that £500. A&L are well known for having charged £295 as an MEAF, but not any more than that.

I'd be surprised at a flexible mortgage product having a penalty over and above that, but I'm willing to be persuaded. You need to look at your redemption statement to get the breakdown.

Probably (and this is educated guesswork) the other £205 was actually interest for the final part month?

MarkyMarkD

mrs_bunny wrote:

first message - bear with me!! Need advice from those in the know please; started abbey mortgage in 93 with (then) husband. Split up 98 but his name was never removed from mortgage. repaid abbey 2005 when me + new hubby moved + switched lenders. What are the chances of getting any exit fee refund paid to me, even though 2 names were on mortgage?? Any help greatly appreciated.
Ps have tried 0800 0320617 for abbey contact - was told the correct number is 08456 000346.

Two points:

(1) The Telegraph today states that the ruling doesn't cover mortgages advanced before 1995 - I'm not sure where they get that from, as I've never seen that mentioned anywhere else.

(2) What you are proposing about the fee refund is theft from your ex-husband and I can't see why you think you should get away with it. You should ask them for two separate cheques to the two separate addresses, as a joint cheque is going to be a problem for you.

musicman100

MarkyMarkD wrote:

Two points:

(1) The Telegraph today states that the ruling doesn't cover mortgages advanced before 1995 - I'm not sure where they get that from, as I've never seen that mentioned anywhere else.

.

Yes it only applies to mortgages taken out after 1995- if you read martins article it says:-

'These laws were introduced in 1995 so only apply to contacts that have been signed since then. Yet remember, the FSA ruling is to do with whether the fee has changed since you signed your contract, for most lender that’s only really happened in the last four or five years though.'


Nigel

taffys

i have a 6% early redemption charge on my morgage in total around £7020.00 that they want to charge me is there anyway to get this lowered at all.

Bernard_Coleslaw

taffys wrote:

i have a 6% early redemption charge on my morgage in total around £7020.00 that they want to charge me is there anyway to get this lowered at all.

taffys - can I politely ask you to read some of the earlier postings on this thread?

You'll see that the early redemption charge you're referring to is nothing to do with the redemption admin fees people are reclaiming.

Your early redemption fee is a part of the cost of your mortgage and I assume you were told abnout it upfront. As such you cannot reclaim it.

leafton

jw08668 wrote:

We am repaying our mortgage 9 months early (with Cooperative Bank) as we are emigrating to Australia. We are being charged £6,597. Unfortunatly a repayment penalty clause of 3% was in the contract. Is their anyway we could claim that this amount is unfair ? I have called the Cooperative Bank twice but they have stated that we signed the contract with this clause and as such we have no right to expect a refund.

Hi,

I hope this works for you:

Earlier on in this thread, there was someone in a similar position to you, who was paying their mortgage early and being charged a fee for doing so. If I remember correctly, they were charged just £10 to change the term of their mortgage from 10 years remaining to one month and thereby saved the exit fee by effectively paying off the mortgage in the correct time.

Sorry if I got the wrong end of the stick, but thats kind of how I understood it. It might be worth a try...

The other option, that I seem to recall reading somewhere on here, is to pay the majority of it off, but leave say £50 outstanding. The amount of interest added will be minimal, compared to the thousands you will be charged for paying off 9 months early.

Good luck and lucky old you! Let us know how you get on...

MarkyMarkD

Leafton, as jw's post was not about MEAFs, your comments won't work.