NEW Mortgage Exit Fees Discussion

katfishh

I've had a mortgage with Halifax for nearly 25 years (Yes - shame on me and fool that I am). Anyway, It due to be paid off in 6 months and on calling for a final settlement fee they have the check to tell me that I have to pay a MORTGAGE EXIT FEE (£75) and a deeds despatch fee, £110.
Surely they are the same thing?

Incidentaly a few years back they sent me a letter saying that as a long standing customer I no longer had to pay the Mortgage exit fee, (I've lost the letter) but they tell me they can change the terms anytime they like. Is this really true?

MarkyMarkD

They can charge you the fee which was agreed by you at the outset or, more likely, the time you last switched product. If your original terms showed two separate fees, then they can charge two separate fees.

If they in the interim suggested they would waive the exit fee, they can change their mind about that unless you paid something to them for that change in terms, IMHO.

jd87

What do you do if your incompetent parents have thrown away all of their paper work and don't even know their account number of anything? This is for the Bradford and Bingley. Mortgage taken out in 1998 and exited around 2004.

MarkyMarkD

Stop interfering with your parents' finances?

jd87

MarkyMarkD wrote: »

Stop interfering with your parents' finances?

Haha. Probably a good idea yes. No don't worry I'm just asking on here because they're not the type to use forums themselves.

But seriously, the chart on the reclaiming guide just says "tbc" for Bradford and Bingley. What should we put on the template letter if we don't know they amount charged, the amount we should have paid, or the account number. Can we call them to ask? Any particular number we should ring?

MarkyMarkD

The template letter is rubbish. You don't need to know the correct amount. All you need to say is "I think I might have paid too much when I redeemed my mortgage in 2004; can you check please".

shropmilo

Hi, Just wondering if anyone can give me any advice.

I currently have a mortgage with Bank of Scotland at a 0.64% above base fixed until Feb 2010, I have been keeping my eye out for a new house for the past few months and have now found it. I contacted the bank to find out my options they are:

• Pay £3000 to wind the mortgage up early

• Port my mortgage (and rate) over to the new house and take a new product out for the difference in price (they would only offer my a 5.19% fixed for 2 years product with £999 product fee and all the usual other charges even tho I have a 73 % LTV on the new purchase.. This is because I'm an existing customer taking out a new additional product.. Hideous or what!)
• In Feb when my first tracker finished I'll go onto their SVR at 4.59% (or there about)

I feel the £3000 charge is ridiculous as if I ride the term out they will only be getting £1500 out of me in Interest & Repayment!

BoS are just not competitive in price as they are not taking on new customers (only Halifax products sold I'm lead to believe) so I'd like to get a much better rate with another bank (FD are looking favorable to me at the moment) but really don’t want the hit of the early repayment charge.

Does anyone know if I could just pay the amount of fixed payments to them and walk away? It seems excessive to charge me more than what they are duly entitled too should I finish the term.

Does anyone have any advice on what is the best thing to do??

Many thanks in advanced.

Milo

dunstonh

I feel the £3000 charge is ridiculous as if I ride the term out they will only be getting £1500 out of me in Interest & Repayment!

They still have to repay the investors that funded the mortgage though and you dont know what those penalties are.

Still, you agreed to have a special deal and tie in so you dont really have a lot to complain about.

Does anyone know if I could just pay the amount of fixed payments to them and walk away? It seems excessive to charge me more than what they are duly entitled too should I finish the term.

No. ERCs are considered fair and legal.

ka7e

I have just received my mortgage Redemption Statement from Abbey as my mortgage will be paid to term on Monday. It's an old one - taken out in 1986!

Included in the breakdown is a figure of £50 for the Mortgage Account Fee (formerly the MEAF). This would indicate that Abbey is acknowledging, and charging what was on the original contract.

MarkyMarkD

As they should do. It is unlikely that any lender is NOT charging the correct fee now, as they have all had to promise to the FSA that they will do so. That is why most of the discussions on this thread relate to people who redeemed their mortgages years ago.