NEW Mortgage Exit Fees Discussion

Noz

johnbelfast2007 wrote: »

Help!! I took a mortgage out with Birmingha and Midshires in March this year, It was discounted for two years. I am hoping to sell the property and clear the mortgage due to the recent rate rises. It is going to cost me over £7,500 in early repayment penalties. Surely this is disproportionate to the amount I borrowed. I borrowed £150,000 . Is there anyway I can get this reduced? No point saying that i should keep it for the two years as this is not an option. Appreciate any advice on this matter.
John

ERCs are a valid fees as you signed up to these fees to secure the discounted rate. Check your mortgage documentation on the exact calculation.

You have rejected possible one option, the only other idea is if you are moving property to see if they will port your mortgage to the new property and perhaps reduce the ERC.

poppyscorner

Hi All,
Can someone point me in the direction that lets me know how much I am likely to have paid and how much it should have been I held a mortgage with the royal bank of scotland which I took out in feb 2002 I sold the house and repaid the mortgage in August 2003 I can't find any of my paperwork so dont even know how much either of these fees were any help appreciated.

Poppy

upxc14

I'm trying to re-claim an exit fee from the Abbey and am getting really frustrated. :mad:

I've changed lenders several times and like an idiot disposed of the paperwork for older accounts.

The Abbey claim not to have any details, I've asked my bank for the direct debit reference and they don't have it, I've even asked the lender I switched to if they had it.

All I have is an exit date and believe it or not a bank statement from 2003 which shows the DD coming out but, alas, no reference number.

The Abbey say they cannot process the claim without the account number and I paid in excess of 3k.

Can anyone offer some help from thier endevours....?

Noz

upxc14 wrote: »

The Abbey say they cannot process the claim without the account number and I paid in excess of 3k.

First of all, 3k sounds more like an early repayment fee rather than a MEAF - can you check this, as early repayment fees are not reclaimable

Noz

poppyscorner wrote: »

Hi All,
Can someone point me in the direction that lets me know how much I am likely to have paid and how much it should have been I held a mortgage with the royal bank of scotland which I took out in feb 2002 I sold the house and repaid the mortgage in August 2003 I can't find any of my paperwork so dont even know how much either of these fees were any help appreciated.

Poppy

check these details poppyscorner: http://www.thisismoney.co.uk/mortgages/article.html?in_article_id=417037&in_page_id=8

upxc14

I was new out of the forces and civvy speak meant nothing to me at the time, I could have signed up to anything. I'm pretty sure, well I know my mortgage was taken over by the RBS and I know I had to pay the 3k which allowed me to switch lenders. Is this MEAFor early repayment.....?

Noz

upxc14 wrote: »

I was new out of the forces and civvy speak meant nothing to me at the time, I could have signed up to anything. I'm pretty sure, well I know my mortgage was taken over by the RBS and I know I had to pay the 3k which allowed me to switch lenders. Is this MEAFor early repayment.....?

Have a read of Martin's article if you haven't already: http://www.moneysavingexpert.com/reclaim/mortgage-fees. It explains the jargon.

I suspect you were charged an early repayment charge for leaving one lender before the end of a mortgage deal to move to another.

Although you may have been charged a MEAF as part of this £3,000, it would have only been as much as £250 - this is what you maybe able to partially claim back.

MarkyMarkD

It does worry me, upxc14, that you (and others) seem to switch lenders without anyone pointing out to you that you will incur ERCs to the extent of (in your case) £3,000.

It is almost NEVER worth paying an ERC. The savings in interest from the new loan, over the period the ERC remains relevant for, are almost never as much as the ERC.

The only exception is where you are on a fixed rate and where prevailing fixed rates have fallen dramatically, which hasn't been the case for quite some years now.

Were you advised to switch lenders by an adviser?

Did your solicitor not point out the £3,000 ERC when you went to sign the paperwork for the remortgage?

As you suggest that you aren't very clued up on mortgage speak, I think you should have been better advised.

ellawood

Hi can anyone help rang lloyds about moragage exit fee as we paid 225 about 5 years ago and they said I was not overcharged and this was the correct fee

MarkyMarkD

Then that's probably right. What more do you expect us to say?