NEW Mortgage Exit Fees Discussion

mayb_2

Can't help with the contact numbers but the main site has a template letter that might be useful if you follow the links from reclaiming mortgage exit fees section.

tee_pee_2

hiya

I am trying to find a contact address for the Cheshire Buliding society any one help me.

Thanks

MarkyMarkD

Tee pee - look at their website. They aren't exactly hard to find.

kat1234_2

Hi everyone good news abbey have sent me a cheque today for £126 so keep going everyone +++++

Clare11

Northern Bank.
Briefly.........closed mortgage with Northern Bank in 2004 on a mortgage taken out in 1995. They charged us £100 in "solicitors fees". Wrote to them complaining etc....
Received the following response.
"£100 was applied in accordance with the terms of the mortgage contract and in line with published tariffs. The charge is not an "Exit Administration Fee" as you state but a LEGAL FEE. I enclose a copy of the relevant section of the Mortgage Charge Document and have highlighted clause 3.3 "Once all the Secured Amounts have been repaid or paid to the Bank in full, the Bank will, at my/our request, release the security created by this Charge. I/we will first pay all costs in connection with the release of this charge."

I wrote to them again saying I was still not happy .....and then received the following response
"The release of your mortgage required the Bank to execute a legal deed. This is not merely a "handling" exercise as you suggest. The legal deed referred to can either be a release of the Bank's charge if the land is registered in the Land Registry or a re-conveyance to the mortgagor if the premises are registered in the Registry of Deeds or have otherwise been demised to the Bank. All such legal deeds have to be prepared and executed by the Bank's own in-house solicitors. Until this legal deed is executed by the Bank clear title to the premises does not re-vest in the mortgagor. This is therefore a legal requirement, and not an arbitrary exercise by the Bank, when a legal mortgage is redeemed by the mortgagor. The fee charged is not excessive for legal work of this nature and we do not intend to refund the fee."

I feel they are fobbing me off.
On THREE occasions I have requested a breakdown in costs/time for the £100 and they have refused. I still maintain its excessive.
It still sounds like an MEAF to me......although they say differently.
What would you do?
I would greatly appreciate any advice
Kind regards
Clare

Noz

You need to be careful here Clare11, MEAFs are not directly linked to reclaiming bank charges - the issue isn't whether they are excessive or not or whether they represent the costs involved, but if the lender charged what they said they would in original documentation - was this cost outlined in any original documents?

I have to admit, I not sure whether the next step is as the Northern Bank dispute it is even a MEAF.

mayb_2

Are Deeds release fees not part of MEAFs?

Clare11

Hi NOz
In the original contract NO specific amount was mentioned. Only the term "I would be agreeable to pay all costs incurred by the Northern Bank....".
Yes......its very vague. I think it was a license for them to print money..smiles

And yes Mayb........quoting Martins article on MEAFs.......
Pay off a mortgage and you'll be charged a fee, technically known as mortgage exit administration fee (MEAF). It's supposedly to cover staff, legal and admin costs e.g. changing the registration of the property at the Land Registry. MEAF's are known by a variety of other names including 'deed release fees', 'sealing fees', 'final administration fees', 'discharge fees' and 'final redemption fees'.

So you understand my confusion....

I still feel they are bluffing me....

I truly need advice on this matter.

Kind regards
Clare

mayb_2

Clare11 was the £100 the only fee you paid or was this just part of it?

Clare11

Hi Mayb
It was the only fee they charged as far as I know with regard to the mortgage.... I do recall them sending a letter that they required £100 but we ignored it. We figured they were not entitled to the £100 because the solicitors of our new bank would have done all. Didnt see why we would have to pay TWO solicitors fees.Then they went and took the £100 from a small account we held, without our authority. I dont know if they were entitled to do so without our permission. We had actually forgotten about that wee account and there was near to £300 in it.
Infact this info about "sol.fees" (dated 20 May, a day after the other bank gave them full payment for our mortgage) only came to our attention 4 months later (SEPT) when we received a statement from our former bank showing they had taken £100 for Solicitors fees on 20 May. The balance was £290 and they had the cheek to charge us £8.66 for keeping the account open! So we duly went into the bank and withdrew the remainder in CASH!
I hope this answers your question
Kind regards
Clare