NEW Mortgage Exit Fees Discussion

bestteragold

well, I don't have the original Halifax document which states what the repayment charge would be. Does anyone know if I can claim anything back and if so what is the best way to do it?

pineapple

HardSpend wrote: »

is there a minimum you can leave on your mortgage to pay off? e.g. can I just leave £1 in my mortgage which has 7 years to run on variable rate, will I end up just paying £1+interest off for 7 years? I think not but am unsure what the minimum actually is?

Don't really want to pay £195 exit fee (lending fee) from Bank of Ireland earlier than I have to

Did you find out about this? This is exactly my position.
I need to find out:
1) If the lender has any restrictions on lump sum payments
2) The minimum allowable balance
3) If there is an exit fee regardless at the end of the mortgage. Mine was described over the phone as an admin charge - which surely would also apply at the end of the mortgage?

But the other factor for me is that I might want to sell and get something for cash (like a bin liner! :rotfl:). Which could affect the deals available. Also I'm wondering if solicitors fees would be substantially reduced without lenders/repayments to deal with.

baloo

Hi there ......I was flabbergasted and intensely annoyed to find out yesterday that we have a STAGGERING £225 "Deeds Release Fee / Exit Fee" to pay on our NatWest mortgage.
As stated in my title, we are due to complete TODAY:eek: . What was supposed to be simple change of lender has turned into a very long drawn out affair taking 3 months due to a worse-than-useless solicitor used by our new lender:mad: .

Finally we get a completion date from useless solicitor yesterday, stating that it would be today and that we have a £225 fee to pay from Natwest!

I am currently awaiting a call back from the Natwest Mortgage Team after ringing them and giving them a piece of my mind about this fee. Basically I have asked for a £ by £ breakdown of the charges, especially considering that I have the original deeds in my posession. I have also rung the Land Registry and found out that they charge £50 for any electronic alterations. I have threatened to move my whole families Natwest bank accounts, etc, etc.

The big fly in my ointment of complaint however is that their charges are written in the small print of a very lengthy original offer of mortgage:(. Cue naive first-time buyer.

If anyone has any constructive advice (besides "read the small-print") pls post!!!

dunstonh

I was flabbergasted and intensely annoyed to find out yesterday that we have a STAGGERING £225 "Deeds Release Fee / Exit Fee" to pay on our NatWest mortgage.

How come? It was in your Key features illustration and your contract. So, if you think it is staggering, then why did you take that mortgage out in the first place?

Basically I have asked for a £ by £ breakdown of the charges, especially considering that I have the original deeds in my posession. I have also rung the Land Registry and found out that they charge £50 for any electronic alterations. I have threatened to move my whole families Natwest bank accounts, etc, etc.

They have no requirement to provide you a breakdown.

The big fly in my ointment of complaint however is that their charges are written in the small print of a very lengthy original offer of mortgage

Not just in the supposed small print but also in the key features illustration in nice big text along with the other fees that you would incur.

If anyone has any constructive advice (besides "read the small-print") pls post!!!

Sorry, cannot be constructive in the way you want it to be. The charge is considered fair and legal and has been round for about 40 odd years. You were told about it when you took the mortgage out. So, complaining about it now is wrong. The best you can hope for is a goodwill gesture by Natwest.

baloo

dunstonh wrote: »

They have no requirement to provide you a breakdown.

Sorry, cannot be constructive in the way you want it to be. QUOTE]


Actually Dunstonh - according to FSA I have every right to ask for a full breakdown of costs. Furthermore these costs should only cover admin costs.

And there was me thinking this forum was for help and advice and not for crowing....

Thrugelmir

baloo wrote: »

dunstonh wrote: »

Actually Dunstonh - according to FSA I have every right to ask for a full breakdown of costs. Furthermore these costs should only cover admin costs.

Every year with your annual mortgage statement you would received a schedule of current charges. Deed release fees have been imposed on mortgages since their inception. So nothing new. By accepting the offer originally you accepted the fees.

So little point in wasting the FSA's time. As there's no mileage in your complaint.

baloo

On the contrary. The FSA are so interested in the breakdown that they specifically asked me if I would mind forwarding it to them when I receive it! So they obviously do not see it as "a waste of time".

MarkyMarkD

The FSA don't deal with individual customer complaints against banks/building societies, so I'm rather surprised that they are apparently interested in the fee breakdown.

The FSA's own ruling on the MEAF issue is totally clear. The fee must be what it was set at, when you took out the mortgage, OR any increases must be linked to genuine increases in their costs.

There is absolutely no requirement for the originally agreed fee to represent just costs. Neither is there any requirement for your mortgage interest rate to represent just costs - banks are allowed to make a profit!

dunstonh

Actually Dunstonh - according to FSA I have every right to ask for a full breakdown of costs. Furthermore these costs should only cover admin costs.

And they can refuse to give them. You can ask them why they chose the colour of the carpet in their office if you want. Nothing stops you asking.

On the contrary. The FSA are so interested in the breakdown that they specifically asked me if I would mind forwarding it to them when I receive it! So they obviously do not see it as "a waste of time".

The FSA do not get involved in things like this. They have no remit to deal with consumer complaints. That is left to the FSCS or FOS.

And there was me thinking this forum was for help and advice and not for crowing....

It helps when people tell us accurate information.

baloo

Just for a quick update on my Natwest Mortgage Exit Fee.....

Firstly I would like to say that all of the information that I gave on this thread was accurate - Dunstonh.

Today I received a call from Natwest who have refunded the FULL £225 exit fee :beer:!!
Hooray!! Just goes to show, if you don't ask - you don't get.