NEW Mortgage Exit Fees Discussion

contractor

dunstonh wrote: »

That doesnt sound like an ERC. ERCs are only chargeable (nowadays) if you are within the deal period. So, unless you bought another deal after that, it is more likely that it is a MEAF. It is inline with their MEAF charges.

Another redemption statement arrived today. It's now 65 quid rather than 225. Much better.

dunstonh

contractor wrote: »

Another redemption statement arrived today. It's now 65 quid rather than 225. Much better.

Its good that its gone down but dont you just hate that sort of inconsistency. (although I suspect that £65 was the original contract charge and £225 is current - a quick google check seems to indicate that £225 is there more recent level but older Abbey National ones had £65 for a period).

contractor

dunstonh wrote: »

Its good that its gone down but dont you just hate that sort of inconsistency. (although I suspect that £65 was the original contract charge and £225 is current - a quick google check seems to indicate that £225 is there more recent level but older Abbey National ones had £65 for a period).

I still can't find any mention of an exit charge, redemption fee, or admin fee or the like in any of my documentation. I'll leave it for now and wait for the dust to settle and then challenge Santander to provide the relevant paperwork.

kingstreet

Going back to when I started in the 80s, fees were set out in a booklet issued with the offer. It would normally be titled "Mortgage Terms & Conditions" or something similar. In those days, a mortgage account had a passbook, similar to a savings account though.

The FSA/FCA position on this is that the lender can charge you;-

- the amount shown at the time the mortgage was arranged, or

- the amount applicable from a change to the account, such as a new product being chosen.

It can't increase the fee to reflect inflation, or charge you its current fee. Lenders who tried that (Northern Rock being the example IIRC) were slapped down by the FSA and had to repay anything charged over and above the original amount notified to the customer, as above.

peterae

I just got my Britannia statement and there's 2 charges added i dont understand,

it says # The above redemption amount includes an early Repayment charge applicable and an exit fee of £30.00 per mortgage plus a £39.00 deeds release fee.

We are on a life tracker and on the 4th year, the mortgage has no early repayment fees in the contract. they charged a total of £69.00.

The thing i dont understand is how they can charge a deeds release fee and an exit fee when i have not exited or got my hands on the deeds.

Can anyone make any sense of why they charged these.

Cheers

jacques_chirac

peterae wrote: »

I just got my Britannia statement and there's 2 charges added i dont understand,

it says # The above redemption amount includes an early Repayment charge applicable and an exit fee of £30.00 per mortgage plus a £39.00 deeds release fee.

We are on a life tracker and on the 4th year, the mortgage has no early repayment fees in the contract. they charged a total of £69.00.

The thing i dont understand is how they can charge a deeds release fee and an exit fee when i have not exited or got my hands on the deeds.

Can anyone make any sense of why they charged these.

Cheers

The redemption amount is a representative figure for if you wanted to pay off your mortgage now. The £30 is an exit fee and the £39 self explanatory.

peterae

I dont understand sorry, they have charged for these fees and added them to my mortgage total yet i dont want to exit or pay off my mortgage.

kingstreet

You haven't been charged them.

The lender is required to show what you would have to repay if you wished to repay your mortgage. These fees will have been shown in section 8 of your original KFI and mortgage offer and the lender is simply reiterating them.

peterae

It would appear they have charged me, my owed balance went up by £69.00 and they placed a # buy that new total, then looking down the page there the text i posted above with another #, so it would appear they have indeed charged me.

I better give them a ring today then, it obviously is not correct for them to charge for these things unless i sold.

peterae

OK maybe they are just showing me what my balance would be if i exited, it's not very clear. sorry for wasting everyones time.

Thanks