NEW Mortgage Exit Fees Discussion

smogen

Hi,
My fixed rate deal ran out on the 1st of January. I have rung NR to ask about the fees i would be charged if i change my mortgage( seeing as they cannot offer me anything). The fees are as follows...

Early repayment charge: £3,542.10
Helps with costs repayment charge: £1,000( this applies up to June 19th 2009)
discharge of mortgage fee/mortgage review fee: £250.00

Its the ERC i want to check, does this sound right? The loan amount was only £46,000.

a1i

I have switched mortgages 4 times in the last 10 years. I no longer have the paperwork. How can I find out if I was charged an exit fee from the companies I held mortgages with?I am selling my property now, so can I confirm, I'll be charged a penalty fee (as I'm still in my fixed term) which I can't reclaim, but I should not be charged an exit fee?Thanks

_Andy_

gordon542 wrote: »

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.

If the £225 was on the KFI/offer letter then this is what you agreed to thus you can't claim anything back.

gaznat13

Hi

just wondering if anyone been in same position and had any luck. In Jan 07 we added £10000 to mortgage with G&C, this came with a £225 exit fee (although was not aware of this when agreed, should read the small print!!!). We are now in process of moving mortgage to HSBC but C&G wont budge on this fee even though they charge £0 for mortgages taken after Aug 07. They wont let me keep £1 in the mortgage account to escape the fee and wont match the HSBC offer. I feel they are holding me to ransom and have asked for this fee to be waived as I have banked with them for over 20yrs, but it is falling on deaf ears. Anyone had any luck in getting the fee back in circumstances like this.

Thanks for any replies

Gaz nat13;)

_Andy_

Well if £225 was what you agreed to then I don't see where the issue is. You agreed to it as part of the T&Cs (which you admit you didn't read) so they're quite within their rights to ask for it. The fact you've banked with them for 20 years is of no relevance.

ng6fxat

Hi all,

recently moved (last month)from NR to Nationwide. Was charged £195 by NR but not sure this is an exit fee? I assume they are no longer charging this...?

Around 5 years I changed product within the NR - would they possibly have charged me an exit fee in that instance, or would there just be a transfer charge which is not refundable?

Sorry if these questions have been asked many times, new to the site, my sister (successful claiment!) put me on to this.

Cheers,

Al

BillyBlue_2

I recently wrote to Northern Rock to reclaim my MEAF using the fgures from the Lender by Lender table. I opened my mortgage on Feb 99 nd closed in Jan 07. They have said their DOM fee has not changed in this time - £140, therefore I am not entitled to anything.

Is there anything further I can do?

Noz

BillyBlue wrote: »

I recently wrote to Northern Rock to reclaim my MEAF using the fgures from the Lender by Lender table. I opened my mortgage on Feb 99 nd closed in Jan 07. They have said their DOM fee has not changed in this time - £140, therefore I am not entitled to anything.

Is there anything further I can do?

If you have no reason to suspect that this information is incorrect then there is nothing to pursue.

a1i

I contacted First Direct this morning, they're never heard of MEAF's! :mad: But looking on their web site, they do mention "closure administration fee". I am taking this to be the same thing.

I can not see what the fee was back in 2001 for First Direct for this fee. I want to claim. I took the mortgage out in 1997, and moved it in 2001. If the exit/closure fee has changed between those dates, then I can claim. See how that goes.

RyanP_2

Ok I dont mean to be rude but please Let me explain why Martin needs to change his No Fee ethos in the curent climate.

Times are changing rapidly within the mortgage market and also changing for mortgage brokers. There are alot of mortgage advisors going out of business becaue the customer can get cheaper deals going direct. The public can go onto price comparison sites and find the best deal for themselves, alot of the time these deals take longer to go through, you talk to sales staff rather than advisors and the public make there own decisions based on their knowledege. This is fine and alot of people are doing it.

Whole of Market brokers have always had a sourcing system which gives them access to the whole of the market enabling them to find the most competitive deal. However over the last few months the banks offered better deals for the customer direct, these deals are not sholwing on the sourcing system. Brokers Do Not Get Paid A Commision If the deal is not on their sourcing system and the customer goes direct.

There are two key things happening in this transitional stage.

1. Mortgage brokers are giving up on the mortgage market because they feel that they cant provide the customer the best deal because the customer is better off going direct. Thus brokers they are not getting paid.

2. Customers are blindly navigating themselves through the mortgage decision and been sold mortgages rather than making an advised decision.

The only way for both parties to benefit is for a mortgage broker to research the Whole Of The Market including the direct deals and to advice and reccommend the most suitable product. If the most suitable product is a direct deal then he or she should be able to Charge A Fee for the research, advice and time that they have spent ensuring the customer makes the right decision for themselves.

This fee may not be as much as what brokers once received in commission but it ensures that the customer is getting the advise and the broker is getting paid for his or her services. I would charger a fee of £200. There is hardly any profit been made out of this £200.