Mortgage Exit Fees discussion

Sweepie

How do you work this one out then. I'm stuck in with a fixed rate mortgage for the next couple of years. I've found another property which I am buying, but keeping with my present lender......no mortgage redemption fees me thinks. Anyway, they still want me to pay £225.00 redemption/sealing fees. I explained that I am not redeeming my mortgage or paying if off, therefore, no exit fee. All I want to do is move my mortgage to another property. So how do they work that one out then....they say it's admin charges/discharging themselves from any interest in my present home, etc., etc,. I'm awaiting a call from the manager at this minute in time to see what he/she comes up with...can't wait to hear their excuses.

Since posting this message yesterday, the bank have now agreed to waive this £225 as it wasn't mentioned in the original agreement. Woohoo !!!!!!

jtotheb

Just been looking through my paperwork for the Cheltenham and Gloucester mortgage I took out in Novemeber 2001 and redeemed in mid-2003. They charged me a £100 'closing admin fee'.

However, I can't find anywhere in my original agreement where it states that there would be such a fee. There's mention of the early redemption penalty but nothing about an MEAF.

Does anyone have or had a mortgage with C&G from this time and can help me with locating where the fee would be mentioned?

jj99_3

this is the first time I have used a forum so don't really know what I am doing. I would like to ask a question. On my paperwork for the mortgage, we have been charged a "closing admin charge" is this a mortgage exit fee? Thanks. jj99

spanky36

I don't know what to do, I re-mortgaged to preferred last year from 5 years with the right to buy people I don't know if I was charged an exit fee so will be sending the letter to ask. On top of this I am also selling up this month from preferred who no doubt will charge a massive early replayment fee but again I don't know about an exit fee so will send them the same letter once I've sold up but as the question above is there anyway of reducing the repayment fees at all?
this is my first post although I do read the tips emails so thanks Martin for all your past advice

Shaunyboy

I think we need some clear guidance here if at all possible.

Although I do understand the whole situation is still in flux

Is the Deeds Despatch Fee to be included in peoples claims? Surely £50 is excessive to be sent a bit of paperwork.

I paid £115 and £50 Deeds Despatch Fee and now Halifax have offered me £75. Should I cut and run? Or be cheeky and ask for the lot??

decisions... decisions.......

Luggworm

Thomas_Crown wrote:

I took out a Freestyle mortgage with Standard Life Bank in 2000 & later remortgaged in November 2003. I was charged £150.00 mortgage redemption fee which was a lot higher than the original fee on the agreement.

Unfortunately I only have the very last statement issued by Standard Life Bank in 2003 & I am not sure whether the fee on the agreement was £NIL or £40.00. Does anyone know what the redemption fee was back in 2000?

I just hope that someone has a good memory or some relevant paperwork to hand.

I've just rung them, there was no charge in 2000. I'm now going to post my letter asking for the full £200 they took off me last month!

regularsaver1

Money_Minor wrote:

If anyone is interested in the Halifax fees, the mortgage admin fees are £175 and £50 for a deeds despatch fee, so when you are looking at reclaiming the fees, it will only be up to the £175, not the £225 that Moneyfacts has provided.

Nothing worse than thinking you will get more than you think you will!

Hope this helps all your claims

:beer:

That is because it is £175 early discharge fee, and then £50 deeds dispatch fee if they held them - so £225

Targetpractice2

Recently looked to closing my Mortgage off with the A&L. I have a no penalty repayment Mortgage. I have it down to £20,000 and wished to pay it off. The A&L want to charge me £295 for this service. (holding the deeds / paper work they say). This is actually 3 times my monthly payments!.. My mortgage documents say no early redemption charges outside the initial 2 year period, ..even though this is a 'paperwork' charge it is still and early redemption charge. I said as was mentioned on this site that I would pay it down to a level and leave £50 on the mortgage until it matured..I was told that they would charge me a fee for taking the Mortgage below £10,000! I asked what would happen at the end of the Mortgage if I left it to pay to maturity and was told that there would be no charge!...Go figure! I argued about the charge and they have knocked it down to £220 but I believe this is still unfair practice and believe I have a case for them to answer....any thoughts out there?

ManAtHome

MarkyMarkD wrote:

The significant increases only occurred in the past 3-4 years. Increases before that were relatively small and likely to be considered acceptable by the FSA.

Most guidance I have seen on the subject talks about redemptions from 2003 or 2004 onwards.

I'd agree on that one - used to be a "deeds release fee", think it was around £50 10 years or so ago.

Main problem is they've all been under-pricing mortgages to nick market share, so have been ramping up "release fees" to get the bottom line back in shape when people find that last years cheapy isn't this years.... tough!

Although it doesn't affect me, I do hope the FSA rules that they can only extract fees mentioned when the contract was signed, anything else would be licensed robbery (although not a new concept for the finance sector).

Skiveg

I too have a question as a newbie poster but longtime lurker. I am buying my wife out of my home that was in our joint names as tenants in common. My lender, Abbey, have a charge of £125 for this. Could I reclaim some of this this as an unfair charge?

In addition, when I rang Abbey to arrange the second additional lending loan, I only agreed to this on the basis they agreed to match the 1.30% discount I had on the original loan. They initially agreed to this but said that the additional loan would need to be taken out at the SVR and I would then have to call them when it was through to get the discount put on. After a fight, I have now had a 1.29% discount agreed (not worth arguing about 0.01%) but they have told me there is a £75 admin charge for that, not something I was told at the outset.

Could I also reclaim this as a unfair charge and what would any experts out there think to be a sensible charge to negotiate on taking into account "reasonable" costs?

I have my own ideas but any experienced guidance would be appreciated.