NEW Mortgage Exit Fees Discussion

kingstreet

That's what they are supposed to do. They should add up the balance and any fees due and show you what the redemption figure was on the day your statement was issued.

If you've actually paid these fees, ask the lender why that's the case.

FWIW, some lenders do actually debit the exit fee during the course of the mortgage, rather than as a lump sum at the beginning or end of the account.

Matilda1983

Mortgage fee is a joke, I can't believe banks charge product fee. They got stick from the government about high interest rates, so now they lowered the rates but charge product fee when you take it out, works out to be same

absolute joke it is

dunstonh

Matilda1983 wrote: »

Mortgage fee is a joke, I can't believe banks charge product fee. They got stick from the government about high interest rates, so now they lowered the rates but charge product fee when you take it out, works out to be same

absolute joke it is

And given your considerable knowledge, how would you set your charges up if you were offering such products?

Planahead

2004 remortgaged from interest only deal - £76k. Was chgd Admin/redemption fee of £195 but also more importantly INTEREST DUE of £3,175.66.
I wondered whether this 'interest' charge falls within the reclaimable fees portfolio? Summary:

01.10.03 balance £ 76,094.36,
16.10.03-16.06.04 INT only payments of £ 3,352.00
Balance £72,742.36.
Admin fee charged £ 195.00
INTEREST DUE £3,175.66
New Balance £76,113.02

I know I should have asked this question at the time but it was a difficult time for us with parents with Alzheimer's and having to travel long distances to visit/look after them as well as both of us working full time [shift work] and bringing up children [with special needs] so life wasn't straightforward....... I'm only now looking at this sort of stuff as we add to our mortgage and re-mortgage. As the above mortgage was interest only - and payments made regularly how they can charge us interest again? And if this is correct then what is the breakdown/explanation?
If anyone can assist or point me in the right direction then I would be very grateful.
Many thanks in anticipation.

Thrugelmir

Planahead wrote: »

As the above mortgage was interest only - and payments made regularly how they can charge us interest again?

All you paying was the interest..........

Did it ever occur to you to pay the debt owed ?

dunstonh

I wondered whether this 'interest' charge falls within the reclaimable fees portfolio? Summary:

Interest is interest. it is not a fee.

You borrow money and you pay interest on it. Simple as that.

As the above mortgage was interest only - and payments made regularly how they can charge us interest again?

Did you buy a tied in deal and repay it early?

Minnimoo

I rang the Halifax regarding the £625 exit fees I have to pay because I'm due to pay my mortgage off early. When I questioned the advisor on the phone, she stated that it was due to my fixed rate mortgage! Makes me sick!

dunstonh

Minnimoo wrote: »

I rang the Halifax regarding the £625 exit fees I have to pay because I'm due to pay my mortgage off early. When I questioned the advisor on the phone, she stated that it was due to my fixed rate mortgage! Makes me sick!

Why does it make you sick? You entered into the contract knowing there was a tie in period. The deal you got was funded by similar tie ins for Halifax. So, why should you get out of paying them?

Sounds like you want to have your cake and eat it too.

fabfor

Hi, I've just paid off my mortgage one year early and been charged a "final repayment charge" (not exit fee) of £275.00 by the Woolwich. Can this still be challenged?

kingstreet

fabfor wrote: »

Hi, I've just paid off my mortgage one year early and been charged a "final repayment charge" (not exit fee) of £275.00 by the Woolwich. Can this still be challenged?

If it the same as when you took out the mortgage, or changed to the latest rate option, no.

If it has been increased from what you were told, you may be able to claim back the difference between what you are being charged now and what you were told you would be charged at the outset.

BTW it is an exit fee, otherwise known as a deeds release fee, account closure fee etc. It is not an early redemption penalty.