NEW Mortgage Exit Fees Discussion

naomi009

Noz wrote: »

Have you read Martin's article? http://www.moneysavingexpert.com/reclaim/mortgage-fees

If you were charged what was quoted then you have nothing to reclaim.

Thanks Noz. m new to this site, I have read the artile but couldnt make sense of the part i wished to know:rolleyes: Thought it was worth a try... Thanks for your reply :beer:

Hannah_Holme

HELP. I bought my house in 2005. my situation has now changed. Im stuck with my fixed rate mortgage untill 2010.
i am planning to move in with my boy friend, but my mortgane company says that i cant rent my house out as i need a 'buy to let' mortgage. However, they will not allow me to change to a buy to let. My redemption fee is about £3000!!!! is there anything i can do about this. Im thinking that i may just have to sellmy house, pay the 3 grand and live with it. please help!!!!

dunstonh

My redemption fee is about £3000!!!! is there anything i can do about this. Im thinking that i may just have to sellmy house, pay the 3 grand and live with it. please help!!!

You entered into a contract that had a special deal. The downside of that special deal is the tie in with penalty and that is quite legal and fair. There is no way to avoid this fee and it is unusual to see a lender write it off.

Parrot

Hey peeps,

I am in the process of looking at options for remortaging but I can’t do it until 01 jan 09 because of the redemption fees. Looking on the MSE website it states it’s possible to reclaim MEAF’s.

I have spoke to Northern Rock about the fee’s I will incur when I finally leave in a few months, the MEAF is £250.

Do you think it wise to claim now that the £250 is unfair and ask them to waive it/ reduce it or wait until I have paid it then claim it back.

I am trying to save as much money as possible so waiting for my fix rate to end in Jan so I do not pay the redemtion fee but I will incur the helper costs which I totally forgot I have but that doesn’t end until 17 May 09, long after I have gone.

Any help would be appreciated as always

MarkyMarkD

Neither. Presuming that you have a 2 year product, then you agreed to the £250 when you took out the mortgage and it was shown (really clearly) in your Key Facts Illustration.

So I'd suggest that you pay it, on redemption, and then don't try to claim it back at all.

If you actually took out your mortgage more than 3 years ago, then NR won't ask you for £250 on redemption, but instead will ask for the correct amount. So once again, there won't be any need for reclaiming.

The only circumstances anyone should be reclaiming are where they redeemed before the start of this year, and hence paid too much compared to what they originally agreed to pay.

Is it actually not worth waiting until 17/05/09, so that you don't need to repay the Help With Costs element? Obviously it depends on the size of your mortgage and how good a rate you can get elsewhere (which is itself very much dependent on your current LTV).

Parrot

MarkyMarkD wrote: »

Neither. Presuming that you have a 2 year product, then you agreed to the £250 when you took out the mortgage and it was shown (really clearly) in your Key Facts Illustration.

So I'd suggest that you pay it, on redemption, and then don't try to claim it back at all.

If you actually took out your mortgage more than 3 years ago, then NR won't ask you for £250 on redemption, but instead will ask for the correct amount. So once again, there won't be any need for reclaiming.

The only circumstances anyone should be reclaiming are where they redeemed before the start of this year, and hence paid too much compared to what they originally agreed to pay.

Is it actually not worth waiting until 17/05/09, so that you don't need to repay the Help With Costs element? Obviously it depends on the size of your mortgage and how good a rate you can get elsewhere (which is itself very much dependent on your current LTV).

It was a 3 year deal not two year, which is near the end.

The only reason i asked about the MEAF is based on Martin's advice about them charging too much, which is not justified.

I was not planning on waiting until 17/05/2009 - there's no point in that, i still need to remortgage otherwise be on a variable rate - no thanks!

MarkyMarkD

My point was that it's not worth paying £1,000 if the interest differential by switching is only (say) £150 per month.

The FSA's ruling on the matter said lenders shouldn't increase the amount, not that any particular amount was too much. Martin's advice also reiterates this. He used to suggest you could be bolshy and refuse to pay because it was "too much" but he's moved away from this view.

iwannavr

dunstonh wrote: »

You entered into a contract that had a special deal. The downside of that special deal is the tie in with penalty and that is quite legal and fair. There is no way to avoid this fee and it is unusual to see a lender write it off.

First of all, its not a redemption fee, from the size of the amount you have quoted its an Early Repayment Charge, commonly abbrievated as ERC. Its usually applicable whilst within the fixed rate period of a mortgage, the fee can be waived but only under certain circumstances, i.e. porting, there are always other circumstances where ERC's are waived, Oakwood Homeloans are currently waiving the ERC's in order to reduce the book size, but thats a completely seperate issue.

If you want to know whats available to claim back, read the FSA's statement about MEAFs, thats all there is to it.

Ian_Griffiths_Halifax

iwannavr wrote: »

First of all, its not a redemption fee, from the size of the amount you have quoted its an Early Repayment Charge, commonly abbrievated as ERC. Its usually applicable whilst within the fixed rate period of a mortgage, the fee can be waived but only under certain circumstances, i.e. porting, there are always other circumstances where ERC's are waived, Oakwood Homeloans are currently waiving the ERC's in order to reduce the book size, but thats a completely seperate issue.

If you want to know whats available to claim back, read the FSA's statement about MEAFs, thats all there is to it.

You won't make your self any friends on here by correcting people's already correct posts!

A 'tie in with penalty' is lay-mans terms for 'Early Repayment Charge'.

It seems to me, that from this and your other posts, that you must be only very new to your Mortgage Complaints Handling job and if you work for one lender, then you may be applying their rules to your posts. For example, some lenders will waive Redemption Penalties/Tie in penalties/Early Repayment Charges if the mortgage is being repaid from the proceeds of a Life Assurance Policy.

Baz_2

Guys, I finish my 5 year fix with abbey in December 08 and I have rummaged through some old papers and found the offer document and some various papers. The offer document doesn't seem to mention an amount for exit fees but I do have a brochure that does mention the £225 charge. Now I have no idea when I received this brochure, it could have been on completion in 2003 or it could have came with a annual statement.

Thisismoney.co.uk say that Abbey's fee changed from £99 to £225 in May 2007 so I guess I should be expecting to pay the £99 rather than the £225.

Has anyone claimed back exit fees from abbey for mortgages prior to May 2007 having been charged a £225 fee?

Also should I wait and see what they charge or write to them now to ask?