What about fees connected to lock ins?

Jue_2

Hi

This may be a diferent thing from the actual claiming of mortgage exit fees but. I originally had a fixed rate mortgage which carried penalty fees if I moved during the 'lock in' which I understood it to be for 3 years. During the next 2 years I switched to a new lender and then found out that I still had fees to pay. The main problem I'm faced with is not having any literature regarding any of these proceedings. Any ideas on where to actualy start? Do I have any right to ask my first lender for information and do they have to provide it?

millsy1980

Yes you can ask the lender for information, however you should be able to find it in the copy of mortgage offer your received and signed that stated the original terms and conditions of the mortgage to you.

Jue_2

Thanks for that. But me being me, I havn't got the mortgage offer from that particular mortgage, the one before this one. Will they let me have a copy of this information?

Antj29

if they still hold it, technically they should have a copy of it for old Mortgage Code Compliance reasons as when you took thaty one out it would not be FSA regulated. Under Data protection you are allowed to request copies of all information held about you on any media. So they should have a copy of your original offer and quote,

Depending on the lenders policy you may have to pay a Data requisition fee, which are usually no more than £10, But i stress you should have to go down this route if they don't play ball. You will probably find they will let you have a copy if you are polite to them.

That is the only way of knowing what you roigonally signed up for,

dunstonh

It would pretty much be a waste of time though as early redemption penalties are valid and acceptable.

Antj29

not if he was charged wrongly, before my move to the enlightened world of indepndance I worked for a large lender for many years. You would be surprised at how many people got wrongly charged ERC's when they should'nt have. Some of the systems lenders used to use were very out of date, its only the last few years due to Basle that lenders have had to sort it out and get fully computerised. Now it is rare, but before 2005 its feasable.

I have a lovely complaint going through at the moment of a wrongly set up rate.

I also saw a case once, this was a biggy, a guy took out a mortgage in 1982 on what he thought was repayment basis, his quote said repayment, the original offer said repayment, anyway he leaves it going for 20 yrs comes in to the branch and asks why even though repayment his balance has never gone down. Turns out when the loan was set up processing had set it up as an interest only even though paperwork clearly said repayment. Customer ended up getting his mortgage payed off in full plus compensation for over charged interest element, So yes mistakes do happen.

Thats why i suggest checking the paperwork first to see what he signed up for.

sandy1951

Is there any chance that fixed rate lock in fees could possibly be refunded? My husband was made redundant and we decided to pay off the mortgage with his redundancy. We had always paid a higher rate of interest anyway as we had a 5 year fixed rate.