NEW Mortgage Exit Fees Discussion

want2bmortgage3

i called up 'bank of scotland' a couple of weeks ago to claim back any fees i over paid when i re-mortgaged a year ago. they told me they would look into it and be in touch with me via letter. however i have not heard anything yet. do you think this is a delay tactic and they arent planning to look into it? by the way it is just bank of scotland and not royal bank of scotland (natwest).

thanks for any input

Noz

want2bmortgage3 wrote: »

i called up 'bank of scotland' a couple of weeks ago to claim back any fees i over paid when i re-mortgaged a year ago. they told me they would look into it and be in touch with me via letter. however i have not heard anything yet. do you think this is a delay tactic and they arent planning to look into it? by the way it is just bank of scotland and not royal bank of scotland (natwest).

thanks for any input

Just ring and ask for an update

MarkyMarkD

Laini A cash back charge is probably a form of ERC (early repayment charge) where you have to repay a cash back you were given, if you redeem within a particular time period. ERCs are never reclaimable.

So your claim, if any, would be based on £99. And you'd only be eligible if that £99 was more than quoted at the start of your mortgage. I don't expect you to be able to claim anything worthwhile but it depends when your mortgage started.

Sweets2 I can't imagine why Mortgage Trust would stop using the "not regulated by the FSA" argument, given that it's true and they aren't. So they aren't going to pay up.

K-lo

on a mortgage offer i received back in august 2002 from northern rock. they state the following:-

Risk Charge

"We would normally only lend £97,496 on the security of the property but are prepared to lend £123,495 subject to the payment of a risk charge fee of £2,326. This non-refundable fee will be added to your mortgage account on completion of the loan"

Can I dispute this ?

MarkyMarkD

No. It's not an MEAF. It's a fair charge for the extra risk of lending you more than 90% of the value of the property. And it was in the offer, and you knew about the charge before you accepted the offer.

Flummox

Hi. I have two properties - a rented house plus my own home - so I have racked up about 6 remortgages in as many years. Although I wrote to each bank merely requesting the details, one (Alliance & Leicester) sent a cheque for £110 which included interest!
Others, I'm still waiting for, but Bank of Ireland have outlined the original MEAF (or 'Sealing Fee', as they call it) at £145 in 2003 and the actual fee I paid (£195 in 2005). As a "gesture of goodwill", they have offered me a £50 refund, which seems a bit measly since that is the exact amount they overcharged me 3 years ago. On the other hand, it hardly seems worth risking them withdrawing the offer altogether for the sake of about £10 of interest.

Advice, anyone?
Thanks,
David

MarkyMarkD

The FSA ruling doesn't obligate the payment of [STRIKE]insurance[/STRIKE] interest, so most lenders don't.

A&L don't either, so I'm surprised that you believe your £110 includes interest.

There's no good reason to chase after trivial amounts of interest IMHO.

Flummox

Insurance? No, MEAFs.
A&L's letter stated "this cheque includes an interest amount of £35.20". Also, in the BoI case, I'm not just thinking of the interest, but the fact that Martin Lewis advises that “the actual administration cost ...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”.

MarkyMarkD

Sorry for the typo - now amended.

Martin has back-tracked from that position, if you've watched his Channel 5 programme, and stated that he's not convinced by that "ultra-bolshy" position.

I don't agree with it either. If you agreed to pay £295 (say) then that's what you've agreed. Costs are completely irrelevant because it's not a penalty; it's a contractual payment due at the end of your mortgage.

It's no different to the lender charging a fee up front - which you agree in the contract.

Indeed, some lenders (one or two) have changed the name of their MEAF to "deferred application fee" or similar, to reflect this logic.

Flummox

Fair enough. I'm going to accept the £50 refund. I just wanted to see if I should hold out for a greater refund or even the whole fee. Problem is I don't have a copy of the original offer or terms, so I have to take the bank's word that the original fee agreed was £145. It's still £50 I wouldn't have had otherwise. Thanks for the help. D