Mortgage Exit Fees discussion

JaneB271

Hi, just discovered this site, its fab!

C&G charged us a closing admin fee of £295 a few years ago, no mentioned it in our loan agreement but is it still worth a go for a refund?

Thanks

raeble

djb wrote:

I took out a 2 yr tracker mortgage with abbey nov'04 and having looked through all my original paperwork cant find any reference to an exit fee yet have just been charged £225. Can anyone help?

You are not alone. Several of us seem to have taken out mortgages with abbey in 04 but can't seem to find any mention of this particular fee anywhere in the paperwork(this thread and this thread). It was apparently £95 in '04.

I have recently remortgaged from the abbey and got my redemption fee back after I wrote two letters of complaint. Details here.

MarkyMarkD

I like your reference back to that first post, raeble, as in that first post I presciently predicted that there was no case to answer for lenders who charged higher MEAFs but declared them up-front - and the FSA ruling says exactly that. Lenders can charge any amount they choose, as long as they don't increase it without reason after stating it in the original offer documentation.

isayoldchap

I see that the exit chart table doesn't show Britannia.
I phoned Britannia this morning and was advised that as some people are calling they will call back within 24hours.
Has anyone had a call back.
Their statement showed the discharge fee as £50?So I guess you could challenge it if you had a s1 and sub 2 account.Intrestingly the Statement up to 31/12/02 it has been changed to £50 per account..I had two accounts in 2000/1.They had already charged £50 when I moved house only to charge me £100 again in 2004.

Should we also include the deeds fees?

isayoldchap

GavinGKS wrote:

I read your article on this with great interest and wonder if it applies to me.
I have had a mortgage with the Alliance and Leicester since 2003. I had a 2 year fixed rate that ended in 2005. When searching for a new deal the best offer was again with the Alliance. They offered a 3 year fixed rate at 4.34%. I jumped at this and took it out, good job given interest rates.
I have just looked back the paperwork to see they charged me £395 yes £395 for doing this which they kindly added to my mortgage debt. Is this a fair charge or should I try and claim some of it back based on the FSA's observations?


Cheers


Gavin

Hi Gavin
Just adding to what MarkyMarkD has said this is the Product Switch Fee.
Having just received my A&L statement for 2006 mine PSF was added in the additions column as £499 (5yr Fixed deal at 5.14%).I paid this and mine is show as a deduction of £499.

I trust you have paid your £395 so should be shown as deducted,otherwise you are being charged intrest on it.

annie42

I have the contract details and the tariff from Abbey from 2002 and I can't find any reference to exit fees either. I gather from other posts it was £85 then?

keith234

In regards to increased early redemption fees over the years… my mortgage provider increased their fees from around £25 (only May 2004) when I first transferred mortgage to them to £250 to £275 now. I have only been given choice of ‘take it or leave it’ or should I say ‘pay it’ .Why isn’t It the same rules as per bank charges?….’not individually negotiated…’ therefore not a real contract? My current mortgage is a total of approximately £60 to be paid over about 6 years. The bank (Halifax) keep sending me letters saying ‘…mortgage nearly paid off..pay £275 to clear mortgage…’

I wasn’t given a choice on the amount of redemption fees at any stage… I was told the amount of fees I would have to pay and the rate has risen as time has gone by…illegally??!

[Deleted User]

What is the situation if a lender has since been bought out by another.

I had a Britannic Money mortgage in 2002 but I think they are now part of Paragon?

[Deleted User]

annie42 wrote:

I have the contract details and the tariff from Abbey from 2002 and I can't find any reference to exit fees either. I gather from other posts it was £85 then?

My mortgage quotation from Abbey in 2002 (for the Lifestyle Mortgage) includes

Deeds Handling Fee (charged on Redemption) = £95

annie42

Can anyone tell me what Nat West were charging in 2004 please.