Mortgage Exit Fees discussion

quayley_woman

I phoned Birmingham Midshires Building Society and logged a request for a refund of exit fees for my mortgage which I redeemed two years ago, and within 2 weeks I received a cheque for £150.00. This was the full amount I paid when I vacated the mortgage!! They did not admit they were wrong to charge this amount, but paid it as a gesture of goodwill!

Thanks Martin: - more money saved!

:j :j

twicer

Is there any news on the decision by the lenders on how much they will charge. I understood that it was due on the 28 Feb. Thanks

MarkyMarkD

You might think that the FSA would publish some sort of update, but I don't think that it's likely they are going to list each lender and what they have agreed with them TBH. The lenders also don't seem to be publicising their individual approaches.

Doshback

Has anyone tried asking for interest on the MEAF refunds? I've had a success with MEAFs from Abbey and wondered if this was worth a go?

Beate

Anyone else tried to get Abbey to tell the MEAF amount when taking out the mortgage? OH just phoned and was told they are totally swamped as gazillions of people asking for this information and they will send it out to him within 4 weeks. FOUR WEEKS! Why don't they just look it up in a table, would cost no time at all! Is this a delaying tactic? Should he follow up his phone request with the template letter asking for the info?

bury-bird

Hi All
I am an avid reader and promoter of this site but this is my first time of writing. Wish me well!

We had a mortgage with Yorkshire Building Soc since 1998 which we changed to a different Yorkshire building soc one in 2003 (no charge for changing). We changed again in Dec last year but moved to A&L incurring a £200 exit fee.
My q's are:
1, Are Building Socs included in these repayment of MEAFs?
2, If yes can I claim from 1998 MEAF or only from my last exit fee for the 2003 mortgage?

Any help would be appreciated.
Elaine

Bernard_Coleslaw

bury-bird wrote:

We had a mortgage with Yorkshire Building Soc since 1998 which we changed to a different Yorkshire building soc one in 2003 (no charge for changing). We changed again in Dec last year but moved to A&L incurring a £200 exit fee.
My q's are:
1, Are Building Socs included in these repayment of MEAFs?
2, If yes can I claim from 1998 MEAF or only from my last exit fee for the 2003 mortgage?

Any help would be appreciated.
Elaine

Hello and welcome.

Yes, this does apply to building societies - in fact it applies to all mortgage lenders.

However, as you will have signed up to new terms and conditions when you changed your Yorkshire BS mortgage in 2003, you may only be able to claim if there was a difference between the MEAF quoted to you then, and the MEAF you actually paid in Dec last year.

The point made is that when you changed your mortgage arrangement you were agreeing to whatever MEAF was in place at that time - this would have superceded the MEAF that was in place when you originally took out your mortgage.

This is how many lenders are dealing with this - it might be worth giving the Yorkshire a quick call to confirm this, though.

MarkyMarkD

Bury-bird's circumstances are very similar to mine, actually. We took a further advance with YBS in October 2004 and then redeemed in June 2005 to remortgage to A&L. We got charged the £199 in June 2005.

This page on This is Money shows that YBS changed the MEAF in Jan 2004 from £100 to £150 and then in March 2005 to £199, so you should be eligible for £99 (difference between £199 and £100) whilst I should be eligible for £49 (difference between £199 and £150).

tiggers_2

Hi,
Wonder if you can help have a mortgage with northern rock 2002,first it was a repayment then had to switch intrest only last year.Which I was charged a fee can they do this even though I am still with them ? Also my main concern is now I need to come out of my deal to go for a 3 year fixed step deal where my paypments come down but they want to charge me £295 for closure of excisting deal and £995 for fees that will be added can they do this?????????????????????????????

MarkyMarkD

Yes, yes, and yes. Fees for change of repayment method or fees for change of product are entirely legitimate. "Can they do this?" - YES because in each case you have chosen the change of basis/product and the fee was part of the deal you CHOSE. I think that the £295 is actually a product review fee (not a closure fee), but it makes no difference.