NEW Mortgage Exit Fees Discussion

roofer

I was charged a fee of £16,000 sixteen thousand pounds to pay off my mortgage early, we only had the mortgage for seven months, we new we were in for a fee of some sort but no that much, we only paid off the mortgage after fallin very ill, i have since proved that the advice given to me by the mortgage broker was very poor,
Help, where do we stand ??

_Andy_

You agreed to the fee when you signed the mortgage contract. Nothing to claim back.

MarkyMarkD

That's a bit harsh, Andy. If the advice given by the broker was wrong, there is potential for a claim against the broker. No reason for a claim against the lender though.

(E.g. if you told the broker you might have to redeem very quickly, they would be incorrect to advise a product with an ERC unless they were very clear about the risks this imposed).

dunstonh

If the broker advised repayment of the mortgage that caused the £16k to be incurred then they have a liability for that advice. If the alternative they offered could clear that £16k and more in the time of the replacement deal then its justifiable. If it cant be cleared in that period then it could well be a mis-sale.

However, if the deal was taken out as most deals are and a later unforeseen event occurred that led to you choosing to redeem the mortgage early, then there is nothing to complain about.

_Andy_

Fair point MMD - agree the advice may well have been duff - still don't concede that the posted didn't know about the fees though, given they would've been in the KFI and offer letter etc.
Would be good to know if they have initiated any form of complaint.

jd87

Provider: Bradford and Bingley
Amount charged: £200 (2004)
Amount on contract: £75 (1998)
Amount refunded: £125

We sent a letter to B&B only about 2 weeks ago basically saying "we don't know our account details and we don't know how much we paid, but could you please tell us all we need to know, and refund us if we have overpaid."

They initially responded with a generic letter saying "sorry to hear about your complaint, we are investigating it and will contact you soon". A few days after that we have received a letter saying that we paid £200 and the fee at the time we signed up was £75. They said that they are within their rights to increase the fee, but as a "good will gesture" they will make an exception and refund the difference. They forgot to include the statutory interest I asked for on top but I suppose you can't have everything. Kudos to B&B.

miss_jones_is_confused

Can anyone help.....??

here's my situation...

House bought in 2007, mortagage is approx 60% of the total value of the house. Bought into a 5 years fixed rate of 5.9%. All the mortgage calculators seem to say that adding my exit fee (£2477) and any arrangement fee to my mortagage, remortgaging will save me money in the long run.

Does anyone have any advice of what to change to? can i arrange a base rate as a new customer with another company?

Surely i cannot be the only on paying more than i should be, and will be for the next 3 years!?!

Any help much appreciated!!!!!!

MarkyMarkD

You aren't "paying more than you should be". You are paying the amount you signed up to pay.

Having said that, because ERCs are generally too low at the moment (i.e. do not cover the cost to the lender of your redeeming early) there are some opportunities for those who are prepared to pay the up-front cost, and save money over the term.

Make sure that in any comparison you are comparing a new fix, for the remainder of your current fixed term, with your current fix.

And also make sure that you understand what the revert rate is - your present fix may seem unattractive, but revert to a low margin above BBR, whilst the product you are considering may revert to a far less attractive rate.

Who is the existing mortgage with, and what does the KFI say will happen after year 5?

VIGILANT22

wrong post

tabskitten

Ok i would be really thankful for some advice:

I have 3 properties, two which have been renting out and 1 we live in, we have decided to move to the states and i want to sell up in this country but i am very confused as to what happens should i sell, i.e if i terminate the mortgage early i think i get charged is this right?
looking through the paperwork it looks like this.....
1. In Tidwoth, empty at present ,BIM mortgage and early termination charge I think is past- am putting on market.
2. In Bristol, rented out but i want to sell it BiM mortgage if I terminate early stand to be charged £3850 but still really want to sell it, although only just out of -ve equity!
3. Near Manchester , took out mortgage may last year and stand to be charged £7614 if terminate early

So is there any way that I can not pay these charges as it is the difference between being able to sell the properties or not as i am only just out of -ve equity as it is.......