NEW Mortgage Exit Fees Discussion

mjgiorgianni

Great Thread!

dhilink

I dony know if this is relevant but I have just been charged £999 as a product fee for a mortgage I have only agreed to in principle, for a house we haven't bought yet! Does anyone know if this is correct? I fully understand that once we buy the house and commence the mortgage we would have to pay this fee but what if we are unsuccesful in buying the house and the mortgage is never undertaken? Could somebody please advise! Cheers Dhilin

MarkyMarkD

It's not relevant to this thread, but the answer is that it's up to the lender whether they charge such fees on application or on completion. Some let you choose whether to pay it on app or on completion, in which case you'd be mad to pay it up front for precisely the reason you state.

MSimms

I am confused as to what is a MEAF fee.

I was with Market Harborough.

I was charged Mortgage Discharge fee of £75.00 - not on original fees and charges list to check.

Also Redemption statement fee £60.00 - on list as £35.00.

Which if any of these is the MEAF fee?

Can anyone help? Mary

shamrock7

My sister and her partner have a mortgage with Northern Rock. They have had the fixed rate mortgage for 2 years now. My parents are selling a property which they wish to buy and their mortgage won't increase by much at all.
This is the problem....The house belonging my parents has had subsidence problems. This has been thoroughly investigated and work is being done to rectify the problem. As a precaution my parents had a more in-depth investigation done so as my sister would not inherit futher problems on purchase of the property.
The report was positive and given to Northern Rock by my sister (being very honest!) but advised a year before the mortgage should be put in place incase of further setbacks. After then all is well. This further report was very in depth and going with the original report the mortgage can be put in place straight away. Obviously Northern Rock want to do the latter now they have this further report. My sister could get a mortgage with another lender straight away but Northern Rock will charge her an exit fee of 3.5k which she does not want to have to pay. My mum has also read that Northern Rock are trying to raise funds of over 20 billion and are therefore trying to discourage re-mortgages at present. Is there any way she can avoid this fee??

MarkyMarkD

Sorry, Shamrock, but I can't understand your question.

I think you are saying:

- your sister has an NR mortgage and wants to port it, to buy her/your parents' house.
- your parents' house has had subsidence problems which have been substantially rectified.
- a surveyor has recommended waiting a year to see if the problems recur or whether they are fully sorted.
- Northern Rock don't want to lend whilst the survey situation is outstanding.

If that's the situation correctly summarised, then your sister is stuck. She can't buy the house until the survey problems are resolved. But equally well, nor can your mother sell to anyone else realistically. Why is there a rush?

The fact that NR are trying to reduce the size of their mortgage book doesn't mean that they are waiving ERCs and nor should it - this is taxpayers' money we are talking about!

shamrock7

MarkyMarkD wrote: »

Sorry, Shamrock, but I can't understand your question.

I think you are saying:

- your sister has an NR mortgage and wants to port it, to buy her/your parents' house.
- your parents' house has had subsidence problems which have been substantially rectified.
- a surveyor has recommended waiting a year to see if the problems recur or whether they are fully sorted.
- Northern Rock don't want to lend whilst the survey situation is outstanding.

If that's the situation correctly summarised, then your sister is stuck. She can't buy the house until the survey problems are resolved. But equally well, nor can your mother sell to anyone else realistically. Why is there a rush?

The fact that NR are trying to reduce the size of their mortgage book doesn't mean that they are waiving ERCs and nor should it - this is taxpayers' money we are talking about!

Sorry for being so vague!! There is no rush its just that the mortgage would have gone through okay with the first report and my sister is keen to get their house sold before next year due to the credit crunch incase they lose value as they are needing the full amount on their house. They can get the money from another lender no problem with the original report as this has been checked. Its just that they cant get away from NR without paying 3.5k and wondered if their was a way round it. Thanks!

keeryhome

I used a broker to get a mortgage in 2006. They sold me a mortgage through First National. The first national was bought over by GE Money. I wanted extra money and went through our broker who said that GE Money, who we were with will give us the extra but will have to end our current mortgage contract, charge us for leaving a fee of £1995 and open a new account with them. Is this what i am able to reclaim?

gordon542

Hi,
I have recently paid off my mortgage and was presented with the repayment fee of £225. I have been with the Abbey since I took out my mortgage but swapped it to another of their mortgage products in Sep 2006 which cost me £175. I contacted them trying to get them to reduce or waive the repayment fee but they have declined stating:

The fee reflects the admin costs involved in maintaing an account for the duration of the mortgage, as well as, the admin costs they incur in closing down the mortgage. For example, they state that they retaining staff and computer systems, which enables them to answer any queries I may have and for sending out statements, notifying me of interest rate changes and paying off the outstanding balance etc.

My question is, should I refer my complaint to the financial ombudsman or just pay the £225?

Thanks for your help and a great site.

Rachel_M

I've just received a cheque from Abbey for 175.00, having used Martin's form letter to contact them about my redemption fee

thanks martin !!!