Mortgage Release Fee

silvercar

There is a whole sticky thread on this topic here:

https://forums.moneysavingexpert.com/discussion/394543

Basically they can only charge you what they informed you they would charge when you first took the mortgage or agreed to a change in terms/ conditions. So if you have kept with the same product for 25 years, they can only charge you what they said originally.

we had a Halifax mortgage from 1992 to 2000 and they had to refund some of the charge we had paid. It dropped from £50 to £15. SO I imagine the release fee set in 1987 would have been around £15, as it was only in the mid 90s that they started increasing them.

sheenaread

Fingers crossed! I'll let you know what the terms and conditions say when I get around to reading them

They have sent me a "Title Document Release Authority Form" to complete and sign. If I sign this am I agreeing to the £85 charge added to the amount of the two monthly payments I have still to make or is this purely to give them authority to release the title deeds to me?

Another query. Sorry! My last mortgage payment is due on the 28th of the month and is paid via direct debit. The paperwork states I may incur "Early Repayment Charges" if I redeem before 30th April 2012. Does this mean that they will add this extra charge because my direct debit payment will arrive 2 days early?

Thrugelmir

sheenaread wrote: »

What I want to know is if they stated 25 years ago that the exit fee was for arguments sake say £25. Why should I pay £85 now?

Costs have increased in that time frame.

Did your income remain static over the past 25 years, or did your employer increase prices to cover the cost?

cr1mson

Get the docs out. Slightly different but was charged £250 admin fee when sold old house to redeem mortgage. Paid it at the time due to time constraints but after complained as mortgage offer said £50. Got cheque back for £250 representing overpayment and compensation.

C

DVardysShadow

dunstonh wrote: »

They can refuse to release the charge on your property and place the default on your credit file preventing you from getting credit for some time.

Really? I would have thought that they might refuse to release the mortgage by removing the charge on the property. But a default seems very wrong.

Edited to add: If they don't do the release, then how is there a debt for a release fee to be defaulted? Really, this does not hang together as a fair application of a default.

silvercar

The FSA statement on the subject. Read it and send a copy with a note and the release document.

http://www.fsa.gov.uk/library/communication/pr/2007/012.shtml

sheenaread

Thanks silvercar. That'll make good bedtime reading along with the original terms and conditions.

sheenaread

I've had a look at the original paperwork I have but there is no mention of the release fees. This mortgage was part of a divorce settlement and it looks like my ex may have the paperwork concerned. I have contacted Bank of Ireland and they are going to send me copies of the original terms and conditions which are currently held on microfiche in their warehouse. I should have them within 5 days. So we shall see what they reveal.

Thanks for everybodies help and advice so far.

The_J

1. Find out what the deeds release fee was when you first got the mortgage.

2. You know what it is now. Pay the £87. Get the mortgage paid off.

3. Deduct what it was originally and write to them, according to the compensation templates, for the difference.

In the original T&Cs I expect there would be something that says the fee can change, you can still complain as per the template.

vivaciousvic

vellum wrote: »

santander charges even more, £250 for exit fee, it was stated in the contract, no way out unfortunately.

I'm about to pay off Santander mortgage, and have to pay the £250 exit fee. Shocking that it costs £250 for admin charges! Unfortunately ex hubby did everything so was unaware. Is it worth challenging for such a dis-proportional fee?