NRam £200 exit fees!

jimbo5661

Good evening,
I've currently got a mortgage with NRam that will soon be settled by the sale of my house. We're moving into rented for a bit prior to buying elsewhere once we've saved more for a deposit.

I rang NRam and they gave me the current settlement figure, then told me there was a discharge settlement fee of £200 on top of this... Excuse my ignorance but isn't this what people are claiming back? can i just say to them don't add it in the 1st place?! Anyone have any recent experience of actually getting them to drop the charge prior to redemption rather than claiming back?

Thanks,

James

roonaldo

you need to check your original mortgage offer, if its less and they are now charging £200 then complain. thats why people are claiming theirs back.

If its states £200 in your original offer, then nothing wrong. they are allowed to charge this, as long as its in your original t&c of mortgage.

dunstonh

Excuse my ignorance but isn't this what people are claiming back?

No. The FSA ruling was that you should only be charged what your contract said you would be charged. People are claiming back the difference. Since the FSA ruling, the lenders started charging what was agreed. So, the £200 is almost certainly what you agreed to you when you took the mortgage out (or the last deal you bought if later).

jimbo5661

Thank you. It's clearer now! They're charging £225. I can't find the original paperwork. Is it worth ringing them to ensure the amount is the same as originally agreed or have all now just made sure customers are being quoted the fee originally agreed?

I'm sure i read somewhere that the fees were being challenged if they were too high as they were 'punitive', rather than a general reflection of the costs involved? is this the case or have i dreampt it?

Thank you, James

jimbo5661

Further to above, my GF had and finished her mortgage with Bank Of Ireland in 2009. She paid a exit fee that was higher than originally quoted. Can she claim her money back or is BOI not covered (i noticed it wasn't in the list of contacts) Thanks, James

dunstonh

re Bank of Ireland; yes she can claim back the difference.

'm sure i read somewhere that the fees were being challenged if they were too high as they were 'punitive', rather than a general reflection of the costs involved? is this the case or have i dreampt it?

There has been no challenge to the fees and none that is known about. Martin did an article on them where he said he thought they were unfair but the article was not great and it was just his opinion and not one of fact.

Some of the lenders used to push some of the front end cost on to the back end. Mortgage advisers would look at going in costs, coming out costs and what you paid in between. However, a lot of consumers not using advisers would only focus on going in costs and ignore the charges at the end. So, deals started to get cheaper up front but more expensive at the end to compensate.

JohnP51

I have recently been diagnosed with a potential life threatening illness and contacted NRAM to discuss paying off my mortgage ,just under £3000. They insist that despite my circumstances they are not prepared to waive a fee of £250 (exorbitant) as that charge was in my mortgage offer. They told me they have a duty to taxpayers and must charge this fee. I did tell them I have been a taxpayer for 44 years and thought they were being unreasonable under the circumstances. I spoke to their customer services people and they insist the fee is payable regardless of a customer's circumstances.

lincroft1710

JohnP51 - the poster "dunstonh" knows far more about this than I do. But his post at #3 seems fairly clear, if the exit fee charged is the same as agreed in your mortgage offer, NRAM are doing nothing wrong but could be considered to be unsympathetic in the circumstances.

Your only option would be to escalate your query above customer service.

Thrugelmir

JohnP51 wrote: »

I have recently been diagnosed with a potential life threatening illness and contacted NRAM to discuss paying off my mortgage ,just under £3000. They insist that despite my circumstances they are not prepared to waive a fee of £250 (exorbitant) as that charge was in my mortgage offer. They told me they have a duty to taxpayers and must charge this fee. I did tell them I have been a taxpayer for 44 years and thought they were being unreasonable under the circumstances. I spoke to their customer services people and they insist the fee is payable regardless of a customer's circumstances.

So your heirs are going to be £250 worse off. Yet still inherit a property. Why should other taxpayers subsidise them.

_Andy_

" £250 (exorbitant)"

If you felt it was 'exorbitant' (which it isn't) why did you agree to such a fee when you took the mortgage out?

dunstonh

they are not prepared to waive a fee of £250 (exorbitant)

Why did you buy it in the first place then?

I did tell them I have been a taxpayer for 44 years and thought they were being unreasonable under the circumstances.

Why is it unreasonable for you and not anyone else?