Redemption rip off

A1GOLFER

In 2005 we remortgaged our property with Brittania BS whom we had been with for 13 years. 12 months later we decided to move and approached Brittania to arrange our new mortgage. After several meetings with our local branch, Brittania informed us they could not agree to lend us the amount we were looking for. Because of time scales, we had to persue other avenues quickly, and found a new mortgage with RBS one account (for the same amount as we had asked the Brittania). We ended up paying approximately £3000 in redemption fees and feel that we were forced into this, as we had made every effort to stay with Brittania BS in the first place. Do we have any chance of recovering these fees?

Fairdo_2

IMOH I'm afraid not.

You would have ReMortgaged to a different deal that Brittania could have bought on the money markets. They impose penalties on these preferential deals because they do not want to lose out on the money they should have made and paid for the privalege. It may have cost them and they will not be able to use those funds again at that level. Therefore, they would want to recoup their money from you.

It is set up as a contract and you have renegged on it by asking for a change to the borrowing and/or security. If you had kept it on the same terms by staying where you were and paying the premiums, they would not be able to charge you or impose any levvy. However, as you have requested a change, they have the right to take the penalty.

I would understand the point that you gave them the opportunity to retain your business, but at every change of terms they have a right to accept or refuse. Because they have refused does not make them liable to repay the penalty. Lenders differ on how much and on what security they lend, so they would not be obliged to lend to you on the same terms as another lender has offered I'm afraid.

I have put my point across rather bluntly, but it is not meant as a "tough luck" comment, but a frank reponse about rights.

Wish I could hold up your argument, but I can't.