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NEW Mortgage Exit Fees Discussion

edited 30 November -1 at 1:00AM in Mortgages & Endowments
1.5K replies 338.2K views
MSE_MartinMSE_Martin MoneySaving Expert
8.3K posts
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edited 30 November -1 at 1:00AM in Mortgages & Endowments
This discussion relates to Martin's updated
Mortgage Fees Article
(see old discussion thread here)

To discuss or ask a question about the article: click reply

To report your experiences go to the Mortgage Exit Fees successes and failures thread


Extra Note - We have had lots of comments about what is and isn't included as a MEAF. The article has been updated to include the following text:

What a MEAF isn't.... don't get it confused

This is a strict ruling and only applies to exit fees. Application fees and others that are paid when originally getting the mortgage aren't included.

Also while MEAFs sound similar to ‘early repayment fees', commonly known as 'redemption penalties' again they're not the same thing. Early repayment fees are charged if you repay or switch mortgage during a special deal, such as a fixed or discount rate (see the Mortgage Guide / Remortgage Guide for details) whereas exit fees apply at all times.

For full details, see the Mortgage Fees Reclaiming article.
Martin Lewis, Money Saving Expert.
Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
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Replies

  • We have re-mortgaged so many times in the last 10 years i don't have the contracts or redemption breakdowns from any of the lenders. what should iask them to send me when i call?

    we could have bought a new house with all the fees we have been charged over the years! :mad:

    i am determined to see if i can get anything back, but i don't really understand what a MEAF is and what other name it could have? Could it be the £175 mortgage repayment administration fee from the Halifax in 2006?

    or the £225 repayment fee from the Abbey in 2005?

    we have also had mortgages with EGG and Nat West but no paperwork from them anymore.

    please help. We are desperate, desperate, desperate for a little extra money and this could potentially be the answer to my prayers.

    sally xxx
    SUCCESSFUL CLAIM OF UNFAIR CHARGES £1400 FEB 2007:T

    STRUGGLING AND LEARNING TO LIVE WITHIN MY MEANS

    SOLD HOUSE TO HALVE MORTGAGE...:D
  • BeateBeate Forumite
    3.5K posts
    Thanks for the update. I am not quite sure about asking for interest on top though. The table states that only 3 of all the lenders will pay interest, and none of them at 8%, so why trying to twist their arm? As I understood from the bank charges forum is that interest can only really be claimed when going to court, so why go to court for a few pounds of interest?
    Reclaimed thanks to this site:
    £175 Abbey Mortgage Repayment Fee, £170.03 Capital One Bank Charges £418.07 Lloyds TSB Bank Charges, £2,671.55 Mis-sold Endowment Policy, all for OH
  • PHOEBE_2PHOEBE_2 Forumite
    12 posts
    mortgage discharge fees

    Hello
    I am wanting to confirm if I have a case to reclaim any fees from my last morgage lender?
    I redeemed the morgage early.

    I repayed £64630.56 of £126,117.28 (10 year mortgage taken out in September 2001) to Northern Rock 1.8.03 , re- morgaged £65,000 with the Halifax.

    The paid up date with Northern rrock for full mortgage repayment should have been 2008 with 'no penalty clause' applicable after two years.

    the final statement from Northern Rock lists charges as follows, and as I am not sure what is reclaimable, I would like some advice ?-

    1. Deeds despatch Fee £80.00
    2. Discharge Fee £95.00
    3. Help with costs £400.00

    thanks for any advice you can give

    PHOEBE
  • Hi Pheobe

    You can request a refund for the difference between the original charge quoted in your contract and the actual charge paid, for the Deeds Despatch Fee and Discharge Fee but not the 'help with costs'. Some lenders are treating the deeds despatch as a separate fee but others treat as one, so ask for both and see what they say.

    Good Luck,
    Wendy
    *** Get the Martin's Money Tips Free E-mail at www.moneysavingexpert.com/tips ***
  • foolsgold99foolsgold99 Forumite
    403 posts
    Part of the Furniture Combo Breaker
    ✭✭
    Hello, I'm in the same boat as Funny-about-munny and would really apprecaiate some help and advice. I took out my forst mortgage with the Halifax in Dec 2004. I just remortgaged (to Nationwide) in Jan 2007. I noticed that on my final Halifax statement it says "Repayment Admin Fee = £175.00". I don't have the original Halifax document which states what the repayment charge would be. Does anyone know if I can claim anything back and if so what is the best way to do it?
    Thank you very much in advance. Your help would be greatly appreciated.
  • PHOEBE_2PHOEBE_2 Forumite
    12 posts
    Wendy thanks for
    your help. sorry about all the messges but not sure how the site works?

    Thanks anyway - very helpful
    PHOEBE
  • MarkyMarkDMarkyMarkD Forumite
    9.9K posts
    Part of the Furniture 1,000 Posts Combo Breaker
    ✭✭✭✭
    I have to disagree with this section in the updated article:
    MSE_Martin wrote:
    It's arguable that MEAF fees aren't justified, much like with reclaiming bank charges the basic concept is that under UK contract law, you can't fine someone for breaking a contract, you can only charge them an amount proportionate to the cost of the breach.

    The actual administration cost to a mortgage lender of closing down a mortgage isn't thought to be much more than £50 so it's arguable that you needn't pay more than £50, regardless of what your contract says. Therefore writing to your lender, asking it to justify the charges with a full breakdown, and if it refuses asking for a full refund, can work.

    If you want to adopt this more militant approach then the following template letter should help, though if your lender refuses you may then need to threaten small claims court action.
    There is absolutely no logic in this "arguable" position.

    Redeeming your mortgage is NOT a breach of contract. It is an option for every mortgage borrower to redeem their mortgage at any point in time. The fact that there is an exit fee associated with the end of the contract doesn't make it a penalty - it's a payment that is only due at the end of the contract.

    Therefore the unfair penalty charges angle is completely irrelevant.

    The fact that some people have "succeeded" by threatening small claims court cases using this "angle" doesn't prove anything other than the fact that the cost of defending the cases (which the lenders would definitely win) is uneconomic. It isn't moral, IMHO, to take people (or companies) to court to recover amounts of money which you are not entitled to, just because the third party is economically likely to cave in.
  • smigger15smigger15 Forumite
    38 posts
    MSE_Martin wrote:
    This discussion relates to Martin's updated
    Mortgage Fees Article
    (see old discussion thread here)

    To discuss or ask a question about the article: click reply

    To report your experiences go to the Mortgage Exit Fees successes and failures thread


    Extra Note - We have had lots of comments about what is and isn't included as a MEAF. The article has been updated to include the following text:

    What a MEAF isn't.... don't get it confused

    This is a strict ruling and only applies to exit fees. Application fees and others that are paid when originally getting the mortgage aren't included.

    Also while MEAFs sound similar to ‘early repayment fees', commonly known as 'redemption penalties' again they're not the same thing. Early repayment fees are charged if you repay or switch mortgage during a special deal, such as a fixed or discount rate (see the Mortgage Guide / Remortgage Guide for details) whereas exit fees apply at all times.

    For full details, see the Mortgage Fees Reclaiming article.


    I rang Abbey National and they send out a standard form to fill in with your dets on and return it. Only one sheet so relatively easy. I'll post if i hear anything.;)
  • boroleeborolee Forumite
    5 posts
    I arranged a mortgage in June 05 with BIM, and had the contract stated a release fee of 195. When i remortgaged last year i was indeed charged 195. Can i still claim back any fees as i still think this fee is high for the work involved??

    Thanks
  • boroleeborolee Forumite
    5 posts
    When i arranged my mortgage, the fee quoted was 195, and this is what i was charged when i remortgaged. However, I still feel that this charge is not reflective of the costs incurred, and when i have written to the bank, they say they will not refund, as i sighned up for this fee.

    What else can i do???
This discussion has been closed.

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