NEW Mortgage Exit Fees Discussion

dunstonh

Quite a few lenders have started showing the closure amount and they include the redemption charge and Early repayment charges on their statement. You are not the first one to mention it and initially think they had actually been charged at this point. Although this is now beginning to sound like something different.

kingstreet

Is it possible it was there before but was included as a total with the early redemption penalty for the fix?

For example, it could have been;-

Year 1 = 2% of amount redeemed + £90

Year 2 = 1% of amount redeemed + £90

Year 3+ = £90?

You'd need to check the ERP amount for the first two years to confirm.

aleenajoe

I accepted from the coffer accuse appointment is that absorption can alone absolutely be claimed if traveling to court, so why go to cloister for a few pounds of interest?

kamiii

Hi All,

i took out a mortgage with Bristol & West in 2006. I'm now about to switch mortgage but have found out i have to settle the £195 Exit fee. Will i be able to claim this back?

many thanks

kingstreet

If it was explained to you in 2006 and stated on the KFI and mortgage offer, no, you can't claim it back.

The FSA ruled that any increase between inception/new product and redemption could not be charged, but it did not stop exit fees being charged if they were what was originally agreed.

kamiii

kingstreet wrote: »

If it was explained to you in 2006 and stated on the KFI and mortgage offer, no, you can't claim it back.

The FSA ruled that any increase between inception/new product and redemption could not be charged, but it did not stop exit fees being charged if they were what was originally agreed.

Ok i see, I will have to check what price it was on our original offer. thanks for your help.

kingstreet

The discharge admin fee was £195 on the B&W February 2006 KFI I've just looked at to check.

hasikhushi

Some lenders are treating the deeds despatch as a separate fee but others treat as one and its a nice conversation

pichaerl

It's all about 'mortgage exit administration fees' or paid when closing a mortgage account (including shifting to a new lender). It's supposedly to cover staff, legal and admin costs.

ravenk

I have also just been stung with a Mortgage discharge fee of £105 by the Newbury Building Society.
I'm about to finish my mortgage and figured I might leave a £1,000 outstanding to keep a relationship open with them. When I discussed this , I was told nope ...we want all the money paid back at mortgage end (29th of March).
To be honest they don't understand the word customer ot relationship. your just a number on a Database.
They then informed me of the £105 discharge fee !
A final sting in the tail.
After 15 years with them , this what they think of my custom.
Never missed a payment in 15 years.

Tempted to cause them misery by underpaying amount due by £10 and let them generate paper work and hassle chasing me for it :-)