NEW Mortgage Exit Fees Discussion

bank8er

Good work trifled,

I had a Abbey mortgage from Jan 00' and remortgaged June 07'.
Now I haven't got my original documents but when I remortgaged I have paper work reading that the repayment fee of £225 which I paid.
Does this mean that I agreed these terms by going ahead with the remortgage or have they done me good and proper?
I have wrote to Abbey about this and filling out an application form for my refund but I had a reply reading that "due to a conversion of a new mortgage product the terms of that product specified a repayment fee of £225.00 ?

Any help would be great.

THE_SN1PER

Hi there, sorry to but into peoples conversations however I have a slight dilema which I cant work out. I am new to the site however I dont know if I ve got this worng or whether I am being swindled so to speak.
I have had a mortgage with Leeds Building Society for the past 5 years and recently just switched lenders to the Woolich (via a broker - Mortgage Monitor). I was on a fixed repayment mortgage tied-in until July 31st 2008 with LBS. During July I searched for a new mortgage deal (as I was going to be switched to there variable rate) and the Mortgage Monitor came up with the woolich as there were no arrangement fees and seemed the best for my cicumstances etc. Anyway all the information was given to the MM in which they basically sorted everything out.
However I have received a statement from LBS with Early Redemtion Fee of £134 and Deeds dispatch fee £65 - can this be correct???
My direct debit is on th 28th of July and I thought this would be the last payment however I was debited a month on the variable rate for August.
Woolich are to receive first debit 16.09.08 and additional cost for interest in August.
I rang LBS and they said they would refund me for August (but I dont know where that month has gone unless it is to be added at the end of the term)
Am I right in requesting to be refunded for £134 ERC? or have I got this wrong????? Please dont tell me its because my direct debit is on the 28th of the month surely the solicitor via MM would have accounted for the 3 days
Thank you anyone in anticipation

_Andy_

If £134£+65 are the fees detailed in your offer with Leeds then yes that's correct.

THE_SN1PER

But surely this is either worded wrong as, am I right in saying that you only get charge and "earley redemption fee" for redeeming the mortgage inside a discounted or fixed period of time - where as my fixed rate has seized on 31 July.

_Andy_

THE_SN1PER wrote: »

But surely this is either worded wrong as, am I right in saying that you only get charge and "earley redemption fee" for redeeming the mortgage inside a discounted or fixed period of time - where as my fixed rate has seized on 31 July.

Two different things. Discharge fees are payable whenever. Early repayment charges are only applicable (usually) inside the fixed/discounted deal period. The company hasn't done anything wrong here and the charges would have been detailed on your original mortgage offer.

Noz

olddad wrote: »

Will there be a problem reclaiming now that the banks are changing ownership????????

Wouldn't have thought so. Where banks have changed hands before, the new owners are respecting the FSA guidelines where refunds are applicable.

djpaulc247

I had a mortgage with SPML (Southern Pacific Mortgage Ltd) which I paid off in 2006 when I sold my house, i have contacted them to find out how much I was charged for my mortgage exit fee and they cannot tell me, apparently they do not know how much it was nor can they tell me how much my contract said it should be.

I have moved house twice since I sold the house and cannot find any paperwork except for one letter with my account number so they are going to send me out a copy of my original mortgage offer but if they cannot tell me the amount I was charged, or the amount I should have been charged, how can I find out?!?!

Thanks in advance for any help

MarkyMarkD

bank8er I don't exactly understand your situation. If you switched product whilst with Abbey, then the MEAF will have changed at the time of the switch to the, then current, MEAF.

But I'm surprised if you switched product as recently as June 2007 and have since redeemed and hence been charged an MEAF.

djpaulc247 The solicitor who dealt with the redemption of your mortgage would be able to tell you the amount of the MEAF charged and should have a copy of your original mortgage documentation - so both sides of the question would be answered.

cheddarbob

Hi All. Im after some advice about claiming money back on a 'Closing Admin Charge'.

Me and my girlfriend moved home last October and as such we needed to increase our current fixed mortgage with C&G. We were informed that we would need to port our existing mortgage to the new property and take out another mortgage with them for the additonal amount. The 'early repayment charge (ERC)' on the fixed mortgage was paid when the old house sold but it was reimbursed to us when we completed on the new purchase. But when I saw the redemption statement I noticed that there was an 'Closing Admin Charge' of £225 which we paid but was never refunded. I looked at our old mortgage offer and it was listed as a fee but I thought I'd ask about it anyway.

I rang C&G to enquire about this and the woman on the phone said that because we had repaid the mortgage on the old home, that fee was payable. I explained that we had not cleared this mortgage but just simply transferred the balance to a different property. She said that it had to be paid and there was nothing that could be done. I thought this was a bit unfair as our mortgage had not been repaid, our mortgage was still with C&G and we had actually increased our borrowing. But I went along with it anyway.

I have only just noticed that when we come to repay this mortgage (we are looking to remortgage soon) we will have to pay another £225 as an admin charge. I think this is unfair that they can charge me twice?! Is it?

Although it has been a year, does anyone think I may get some sort of refund? And if so what is the best way to go about it?

Any advice would be greatly appreciated.
Many thanks.

MarkyMarkD

No, it's not wrong and it isn't due to be refunded.

The Closing Admin Charge is the MEAF that this thread is about. It's due in respect of each mortgage that you redeem - you will have redeemed two mortgages.

You do NOT transfer a mortgage from one property to another. You in fact redeem one mortgage, and take out an identical mortgage (same rate, amount, whatever) on a different property. Porting means taking the rate, amount, etc.; it does not mean that you haven't redeemed the first one.

Interestingly A&L do NOT charge an MEAF in the case of ported mortgages, but AFAIK all other lenders do. Woolwich certainly do.