NEW Mortgage Exit Fees Discussion

itsnotfair_2

My daughter got married in July, new hubby had house and mortgage guaranteed by his dad. They thought they could take dad off add daughter to deeds and mort etc but no Cheltenham and Gloucester said they had to start al over exit fees, solicitors fees, valuation fees, new mortage fees etc. they have had to pay out hundreds. Is this all correct. The payments were up to date, they only got married.

MarkyMarkD

MSE_Wendy wrote:

Borolee – your case would be harder but you could try the militant approach mentioned in the mortgage exit fees article. Alternatively, lenders may reduce their fees in the next few months and you could ask to be charged this reduced fee, if and when the BIM decide to do this.

Even if a lender decides to charge a lower fee in future (and there is little evidence that there's any likelihood of this - why would they, when the FSA has explicitly said they can charge anything they like as long as it was disclosed up front - the reduced fee wouldn't apply to people whose fees were stated as a HIGHER amount up front.

The fee is part of the offer and attaches to that mortgage product. The fact that an earlier or later product had a different exit fee is irrelevant.

DaveO

Hi,

We are about to re-mortgage away from Yorkshire Building Society and the current redemption fee is £199 whereas when we first became a customer of theirs in 2000 it was £55.

I have two questions.

1. We have had two mortgage products with YBS. The original mortgage for four years and then we transferred to a new one which we are now switching from to another lender. As YBS have steadily increased the fee over the years am I entitled to ask for the difference between £55 and £199 back or the difference between whatever their fee was two years ago and £199?

2. As we are in the process of re-mortgaging our new lenders solicitors will be asking for a redemption statement which will of course include the redemption fee. Is there any way to get YBS to include the lower redemption fee in the redemption statement or must I wait to be charged the £199 fee and claim it back later?

Thanks,

Dave

MarkyMarkD

itsnotfair wrote:

My daughter got married in July, new hubby had house and mortgage guaranteed by his dad. They thought they could take dad off add daughter to deeds and mort etc but no Cheltenham and Gloucester said they had to start al over exit fees, solicitors fees, valuation fees, new mortage fees etc. they have had to pay out hundreds. Is this all correct. The payments were up to date, they only got married.

It sounds like C&G are being OTT.

In most lenders' eyes, this would be treated as a transfer of equity. It would require the borrowers to pay some sort of fee (maybe £250 or so); it would require the involvement of solicitors which the borrowers would have to pay.

It wouldn't involve the payment of mortgage product fees or mortgage exit fees, unless at the same time as the transfer of equity the borrowers were CHOOSING to switch products.

I'm not sure that you clearly understand:

(a) what she's been charged for; or
(b) what the previous situation was.

If the mortgage was merely GUARANTEED by his father, as you've stated, the removal of the guarantee wouldn't be as big a deal as the removal of him from the property's title deeds and the mortgage. I wonder whether actually the property was jointly owned by him and his father, with a joint mortgage?

Actybod

Hi

I have remortgaged with the same provider 3 times and the fees have gone from £95 to £195 to £395. I cannot see how they can justify the increase.

Can I ask for the charges back on the basis that I think I have been treated unfairly?

Thanks

justocker

Hi,

I remember seeing an exit fee on my final paperwork from IF when I remortgaged last year and thinking it was suspect. However I cannot locate the paperwork in question. I think the amount was about £165 - can anyone help who might know the exact amount?

Many thanks

Julian

MarkyMarkD

DaveO wrote:

Hi,

We are about to re-mortgage away from Yorkshire Building Society and the current redemption fee is £199 whereas when we first became a customer of theirs in 2000 it was £55.

I have two questions.

1. We have had two mortgage products with YBS. The original mortgage for four years and then we transferred to a new one which we are now switching from to another lender. As YBS have steadily increased the fee over the years am I entitled to ask for the difference between £55 and £199 back or the difference between whatever their fee was two years ago and £199?

2. As we are in the process of re-mortgaging our new lenders solicitors will be asking for a redemption statement which will of course include the redemption fee. Is there any way to get YBS to include the lower redemption fee in the redemption statement or must I wait to be charged the £199 fee and claim it back later?

Thanks,

Dave

1. As Martin's article says, it's the fee when you last switched product or took a further advance that counts. So it's 2 years ago (£199) vs now (£199) i.e. nothing due. The fee increased to £199 on 1 March 2005 - if you switched before 1 March in 2005 the original amount due would be £150 so you'd qualify for £49.

2. It depends whether they've updated their redemption quotation systems - probably not. In which case, your redemption will go a lot more smoothly if you simply pay the amount requested and then seek a refund afterwards.

itsnotfair_2

itsnotfair wrote:

(I'm not sure that you clearly understand:

(a) what she's been charged for; or
(b) what the previous situation was.

If the mortgage was merely GUARANTEED by his father, as you've stated, the removal of the guarantee wouldn't be as big a deal as the removal of him from the property's title deeds and the mortgage. I wonder whether actually the property was jointly owned by him and his father, with a joint mortgage?

As I understand it son in law and dad on mortgage, dad as guarantor. The dad died 1 year prior to wedding, son in law just carried on paying as always not knowing he had a problem with mortgage (only 20, knew nothing about finance). After wedding they had to have the original mortgage stopped and start as if applying for new mortgage and everything. My daughter queried it at the time but they said they payments were compulsory.[/QUOTE]

Pipkins

I have just been through the complete details relating to a Northern Rock mortgage that I took out in March 98.

I have the agreement and a booklet with Ts & Cs. The only mention of any charge is on the back of the agreement but does not specifiy what it would be. 'Full details available on request'

I was charged £195 'disbursement' when I paid off the mortgate six years later.

If I call them they can just say that the charge in 1998 was £195.

As the charge was never stated where do I stand?

Thanks,

Terry

Bekkie1980

Hi...firstly WAHOOOOOOOO! Thanks to this site £150 refunded by RBS in the next 5 days with one phonecall....so THANKS! :T So now I have another question...Second charge mortgages! Does this count? We have literally just moved house and took out a completely new mortgage to pay off both previous mortgages (main and second charge) with a lot of fees in the process....RBS sorted out now but GE Money was the second charge with similar higher fees...is it possible to get this back too?

Any ideas greatly appreciated....and good luck to the rest of you:-):beer:

Bekkie