NEW Mortgage Exit Fees Discussion

Sinonthenet

Q. I have a mortgage with Abbey for 3 years (flexible mortgage), but I am moving in with my partner and looking to rent out my house. i have asked abbey for a right to rent condition on my mortgage and they have advised me I have to either pay just over £2000 (non refundable), or change it to a buy to let mortgage with transfer fees etc. Is this a reasonable amount to ask from me? I do not want to remortgage, but would hate to think they are bumping up the cost due to the current conditions. Is there any point in me trying to negotiate with them?

Thanks
Lyns

keen0

I have a current mortgage with the Alliance & Leicester, my current 2 year fixed rate period ends June 30th 2008 and my MEAF (or Redemption Adim Charge as they call it.!!!) is £295 at this point. Basically I know I can try claiming it back when / if I exit the mortgage, but as I signed up to it...what are my chances? and is it possible to have the charge cancelled before I exit.

Please help.!!!

MarkyMarkD

Sinonthenet No there's no point negotiating. You don't have any right to let under the agreement you signed up to. You have the choice of redeeming the mortgage (and paying any ERCs and remortgaging) or paying whatever they choose to ask to make a significant change to the terms of your deal with an increased risk to Abbey.

keen0 We have been over this ground about 100 times in this thread. Welcome to MSE, but it would help if you read the thread (or even the last few pages) before repeating questions. You agreed to pay £295 when you took your current rate; that's what you should pay. They won't refund anything and nor should they. Stick to the terms of what you signed up to, the same way you expect your lender (or anyone else you deal with) to.

tiamaria

Nationwide would like claims in writing so i've been looking at the sample letter.

I have no idea of the original Meaf or what I actually paid so how should i word this letter with no information? I've scoured my deeds and documents to no avail.

house was bought in 1983

TIA

MarkyMarkD

The Thisismoney article here: http://www.thisismoney.co.uk/mortgages/article.html?in_article_id=417037&in_page_id=8 lists the fees charged by each provider at each point in time. So using that you can see (a) what you should have paid and (b) what you would actually have been charged.

Only if (b) is greater than (a) are you due anything.

tiamaria

Trust me to get a difficult one:rolleyes:

Nationwide BS -Till May 2005 there was no fee. Then a fee of £90 was introduced, with a letter to all borrowers clearly announcing the fee.

I actually paid my mortgage off IN May 2005, but I can't find any letters relating to this so I guess I wasn't charged a fee?

BTW that looks like a really interesting site, will have a browse around when I get some time:T

MarkyMarkD

As you are "on the cusp" it would probably be worth asking Nationwide whether you incurred a fee or not, and to refund it if so.

Degs45

Hi all , anyone had any luck with Birmingham Midshires ? I moved mortgage last september and forgot about the exit fee just about to shred the paperwork for it and I read £150 early redemption charge is this the same , and if so whats the best way to contact phone or mail.

regards Degs

MarkyMarkD

Degs If you could read back all of three posts, you'd see a link to a site which shows what each lender charged, and when they changed it. So you could check if you've been overcharged. You haven't given us enough information to work it out anyway.

hock79

I am coming to the end of my fixed rate with Northern Rock and my redemption statement lists a discharge fee of £250. Whilst this was probably listed on my agreement, I can't help thinking that it's a bit steep considering they're practically turfing me out, yet I have to pay to leave. They are not offering me a competitive product to stay, they want rid of me, so why should I have to pay to leave? They obviously need the money but does anyone think I can get them to reduce/waive this fee, has anyone had any luck with similar recent discharge fees?