NEW Mortgage Exit Fees Discussion

Once_bitten

Congratulations. However, we live in troubled times and credit is scarce. The question is, why would anyone do business with you in the future?

julieclav

:question:Hi. I am totally new to this posting forum so please accept my apologies if I am doing this all wrong - been getting emails from this site for months. My husband and I took our fixed rate mortgage out with Northern Rock in 2007, and took a 10 year fixed rate mortgage of 5.69%. The interest rate is so high now in comparision with other companies and we want to move to another company. I am not sure if we are now with Nram or Northern Rock PLC as their answerphone message contradicts what I am told over the phone by staff. Answerphone states I am with Nram, gives me a number to ring, then they tell me I am with Northern Rock PLC when when I say why I am ringing them. Does anyone know or can anyone advise me if we wanted to move our mortgage to a different company to a much lower interest rate, would we still have to pay the £5000.00 + £250.00 early repayment and discharge fee? and are we Nram or Northern Rock PLC
Please help
Many thanks, Julie
[EMAIL="juedumdum38@hotmail.com"]juedumdum38@hotmail.com[/EMAIL]

dunstonh

The interest rate is so high now in comparision with other companies and we want to move to another company.

The rate isnt too bad for certainty of payment. Indeed, in a 3-5 years time, you could easily find that rate is lower than current rates.

would we still have to pay the £5000.00 + £250.00 early repayment and discharge fee?

Yes unless your are NRAM.

julieclav

H, It seems that Nram took over 90% of Northern rock morgages and we are not one of them (I have just found out as our ref. no is not on Nram's system so stil with northern rock PLC) so we will have to pay the full fee to move our morgage:(. But then again, we would be paying that amount in interest anyway if we stay with them so may as well move and know we will have paid the mortgate off in 10 years time. Thank you again, Julie

dunstonh wrote: »

The rate isnt too bad for certainty of payment. Indeed, in a 3-5 years time, you could easily find that rate is lower than current rates.



Yes unless your are NRAM.

simonpowel

Due to a change in circumstances, redundancy from work, I had to sell my house.
My plan was to buy a cheaper house and port part of my mortgage over but, being unemployed, had no way to show income so had no choice other than to redeem the entire mortgage early by about 8 months on a 2 year fixed deal.
I was charged over £14,000 on a £430,000 mortgage, is there any way that fee can reflect realistic admin costs to the lender, can I reclaim any of it?
Are there any companies that carry out this kind of claim on a no win no fee deal?
Cheers

_Andy_

simonpowel wrote: »

Due to a change in circumstances, redundancy from work, I had to sell my house.
My plan was to buy a cheaper house and port part of my mortgage over but, being unemployed, had no way to show income so had no choice other than to redeem the entire mortgage early by about 8 months on a 2 year fixed deal.
I was charged over £14,000 on a £430,000 mortgage, is there any way that fee can reflect realistic admin costs to the lender, can I reclaim any of it?
Are there any companies that carry out this kind of claim on a no win no fee deal?
Cheers

It doesn't have to reflect the admin costs to the lender. There is nothing to 'reclaim' here, you were charged early repayment charges as per what you agree to when you took the mortgage out.

dunstonh

I was charged over £14,000 on a £430,000 mortgage, is there any way that fee can reflect realistic admin costs to the lender, can I reclaim any of it?

That charge isnt what this thread is about. However, what makes you think it isnt realistic?

Deals are financed by investors typically. So, if you pull out early, the lender still has to provide what it agreed to the investors. Or they try to repay money early themeselves, they could be hit with a penalty.

Are there any companies that carry out this kind of claim on a no win no fee deal?

The charge is considered fair, valid and legal. Its similar to mobile phone tie ins, sky tv tie in etc. If you dont like the terms of the tie in then you dont buy it. However, it is too late to complain after the event.

carlw

Hi,

My remortgage away from NRAM to First Direct has just completed on 09/01/2012. I was due to pay a MEAF (Mortgage Exit Administration Fee) of £250 on leaving NRAM, however i have had confirmation from First Direct and the solicitor that my morgage has now completed but have not yet paid this fee, or been asked to pay it. When is it normal to be asked to make this payment.

Im pretty sure that this Fee has not just been added to the new mortgage as the Opening Figure with First Direct is what i had expected to be outstanding on my NRAM mortage and there is no mention of it in the letter from First Direct or Enact (the solicitor appointed by First Direct) informing me of completion.

dunstonh

When is it normal to be asked to make this payment.

It handled by the solicitor at the point the mortgages changeover. Normally they ask for the money in advance of completion.

kimmi11

Hi all. I am new to this forum.
happy new year all