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NEW Mortgage Exit Fees Discussion

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  • smreynard
    smreynard Posts: 45 Forumite
    Part of the Furniture Combo Breaker
    My son took out a mortgage in July 2001 with Royal Bank of Scotland, he has just moved house and paid off that mortgage and taken out a new one with Nationwide. RBS charged a MEAF of £250 (I think it was about £80 when he took out the mortgage). He phoned the number provided on here and he was told that as he took out the mortgage in July 2001 he isn't entitled to reclaim anything. Is this true?
  • Noz
    Noz Posts: 3,869 Forumite
    Part of the Furniture Combo Breaker
    smreynard wrote: »
    My son took out a mortgage in July 2001 with Royal Bank of Scotland, he has just moved house and paid off that mortgage and taken out a new one with Nationwide. RBS charged a MEAF of £250 (I think it was about £80 when he took out the mortgage). He phoned the number provided on here and he was told that as he took out the mortgage in July 2001 he isn't entitled to reclaim anything. Is this true?
    If your definitely sure that there is a difference, then their wrong.

    Either ask him to ring back to see if he speaks to someone who is fully informed or ask him to sent on of template letters.
  • We're about to change lender at end of a 2 year deal with the Abbey. I've checked the small print and unfortunately it does state a £225 exit fee. I didn't spot this at the time - the mortgage was arranged by a broker and although I asked about redemption penalties if I changed after the 2 years (and was told there weren't any) I did not know to ask separate question about exit fees.

    My queries are:

    Can I question Abbey about £225 fee being too high, even though it is written in the contract?

    If not, can I question the original broker for not giving me a full explanation?

    Thanks for advice.
  • Do these only apply to Mortgages or can we ask for a refund of these charges for a loan from G E Money which was secured on the property? Have had the difference refunded from our previous GMAC Mortgage, so thank you.
  • solo504
    solo504 Posts: 1 Newbie
    According to the Moneyfacts table, Northern Rock charged £75 for an exit fee 10 years ago.

    I took out my mortgage with them in 1999 and looking at my contract it does not stipulate the cost of an exit fee other than mentioning a note in small print which advises that the information can be produced upon request.

    I was charged £175 by N Rock when I remortgaged to Nationwide in 2003 and have contacted N Rock to reclaim the difference between the original fee and the amount paid.

    N Rock claim that the charge in 1999 was £140 and I am therefore only entitled to the £35 difference.

    The exit fee quoted (£140) seems rather exorbitant when 2 years earlier the amount was £75??

    Can anyone provide any alternative details to the figures provided by N Rock?
  • littlejaffa
    littlejaffa Posts: 2,251 Forumite
    1,000 Posts Combo Breaker
    THANK YOU!!

    I was wandering about this site a little bored to be honest and somehow (still not sure how!) stummbled on this.
    I called both previous mortgage providers who promised refunds in a few weeks, it was all sooo easy and pain free. So in about 15 minutes start to finish i've a few hundred pounds coming my way.

    For anyone who'd like the details - I paid £175 to halifax aug 06, they're refunding £100 & paid £100 to lloyds in 03 and they're refunding £75 + interest.

    In each case the banks told me what i paid and how much i was due and even offered to pay interest, i didn't know the dates i'd taken out the mortgage, the mortgage numbers or anything and they did all the work with a smile. I was very carefull to say i would accept the refund but NOT as a final amount as i wanted to look into it further.

    I LOVE YOU MSE! :iloveyou:
    Don’t ask what the world needs. Ask what makes you come alive, and go do it.
    Because what the world needs is people who have come alive.
  • solo504 wrote: »
    According to the Moneyfacts table, Northern Rock charged £75 for an exit fee 10 years ago.

    I took out my mortgage with them in 1999 and looking at my contract it does not stipulate the cost of an exit fee other than mentioning a note in small print which advises that the information can be produced upon request.

    I was charged £175 by N Rock when I remortgaged to Nationwide in 2003 and have contacted N Rock to reclaim the difference between the original fee and the amount paid.

    N Rock claim that the charge in 1999 was £140 and I am therefore only entitled to the £35 difference.

    The exit fee quoted (£140) seems rather exorbitant when 2 years earlier the amount was £75??

    Can anyone provide any alternative details to the figures provided by N Rock?
    I took my mortgage out with NR in 1998 - they state the MEAF was £140 then and they charged me £195 in 2003 when I exited - they quickly offered me £55 but I sent a second letter explaining that I wasn't satisfied - I wanted to know why it was so high and for them to detail the costs associated. Asked for the whole £195 (!) + £65 interest (3.5 years interest) - they wrote back saying £55 and no interest! I wrote back again a couple of weeks later and said I wasn't happy on 3 fronts: 1 - transparency - they hadn't detailed their costs despite being asked twice; 2 - reasonableness - their costs were significantly higher than my solicitor for doing the matching work; 3 - fairness - the inland revenue pay (and charge) interest on outstanding amounts so why shouldn't they? They wrote back and offered me £245 which I have now received.
    every-expense-spared :j
  • Glpark01
    Glpark01 Posts: 202 Forumite
    I had a mortgage with skipton bs which i took out in april 2003 but i don't have any of my old mortgage documents, do i write to them asking for my closing statement to see if i qualify for this?
  • smreynard wrote: »
    My son took out a mortgage in July 2001 with Royal Bank of Scotland, he has just moved house and paid off that mortgage and taken out a new one with Nationwide. RBS charged a MEAF of £250 (I think it was about £80 when he took out the mortgage). He phoned the number provided on here and he was told that as he took out the mortgage in July 2001 he isn't entitled to reclaim anything. Is this true?
    I paid off my mortgage with Royal Bank of Scotland in 2006. I had no idea of how much I paid in exit fees or even my mortgage account number but wrote to them anyway using the letter from this site. After a few weeks I received a cheque for £150 no problems at all. I took out the mortgage in March 2004
  • samuela66
    samuela66 Posts: 1,203 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    Hi

    I am leaving my mortgage at the moment with the yorkshire b/s

    it says redemtion administration fee 199.00

    is this what I dont have to pay???

    thanks
    Sam
    Sam B
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