NEW Mortgage Exit Fees Discussion

worto03

Hi,

Sorry to ask a stupid question but I'm new to this (just looking at remortgaging now at the end of my first 2 year fixed deal in August)

I'm currently with the A&L and have chosen to go with HSBC for my new one, A&L are charging me £300 to leave them while the HSBC one if fee free.

Is this the sort of thing that people are claiming is too high (I borrowed £95,000) or am I confused? Should I pay it then look at claiming it back or do you just refuse to pay it, or is £300 acceptable anyway?

I heard that there was a court case coming up which would sort this has that happened yet?

Thanks for any help\updates & sorry if this is already covered but I don't have time to go through 27 pages!
worto.

Noz

worto03 wrote: »

Hi,

Sorry to ask a stupid question but I'm new to this (just looking at remortgaging now at the end of my first 2 year fixed deal in August)

I'm currently with the A&L and have chosen to go with HSBC for my new one, A&L are charging me £300 to leave them while the HSBC one if fee free.

Is this the sort of thing that people are claiming is too high (I borrowed £95,000) or am I confused? Should I pay it then look at claiming it back or do you just refuse to pay it, or is £300 acceptable anyway?

I heard that there was a court case coming up which would sort this has that happened yet?

Thanks for any help\updates & sorry if this is already covered but I don't have time to go through 27 pages!
worto.

You need to check what you signed up to in your mortgage deal.

Is this £300 a MEAF? If its in your contract that your MEAF will be £300 then this is correct and there is no refund/reduction open to you.

Martin's article for mort detail: http://www.moneysavingexpert.com/reclaim/mortgage-fees

freestyleskier

ellawood wrote: »

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

Unlike many people here, I am of the opinion that people should be reclaiming the full amount of these fees rather than just the amount of any increase. The legal basis for this is that they are penalties for leaving the lender and do not reflect the true cost of redeeming the mortgage. I won't go into the specifics but this is the same laws as apply to reclaiming other bank charges.

More info will be available tomorrow eve (Friday) on Tonight with Trevor MacDonald 20:00-20:30. Think it's actually billed as "Reclaim, reclaim, reclaim: Tonight" and features Martin Lewis. I did discuss a couple of details with the producer so I think it is aimed at the reclaiming the full amount.

RABC

RABC wrote: »

HI
Me and my partner took out a mortgage with northern rock around 1995 but due to circumstances we had to sell the property in the year 2000 where the mortgage was paid off in full but we have no idea as to what charges etc we paid when closing the mortgage, we now have another mortgage with another building society which we have had for the past four years
would it be worth us enquiring whether we will be entitled to any refunds etc,
as we have no paperwork connected to that mortgage,sorry if hard to understand . THANKS FOR ANY ADVICE

One quick letter of enquiry £125 cheque...........

MarkyMarkD

freestyleskier wrote: »

Unlike many people here, I am of the opinion that people should be reclaiming the full amount of these fees rather than just the amount of any increase. The legal basis for this is that they are penalties for leaving the lender and do not reflect the true cost of redeeming the mortgage. I won't go into the specifics but this is the same laws as apply to reclaiming other bank charges.

More info will be available tomorrow eve (Friday) on Tonight with Trevor MacDonald 20:00-20:30. Think it's actually billed as "Reclaim, reclaim, reclaim: Tonight" and features Martin Lewis. I did discuss a couple of details with the producer so I think it is aimed at the reclaiming the full amount.

The FSA have fully considered the legal situation and they don't agree with you. If they did, they wouldn't have told lenders that it's perfectly acceptable to charge any amount they like, as long as it's agreed up front.

Your argument holds no water. How is it any different to charge an agreed £250 fee at the start of a loan, or an agreed £250 fee at the end of a loan's life? Yet you seem to believe the latter is an unlawful penalty and the former is OK.

MarkyMarkD

worto03 wrote: »

Hi,

Sorry to ask a stupid question but I'm new to this (just looking at remortgaging now at the end of my first 2 year fixed deal in August)

I'm currently with the A&L and have chosen to go with HSBC for my new one, A&L are charging me £300 to leave them while the HSBC one if fee free.

Is this the sort of thing that people are claiming is too high (I borrowed £95,000) or am I confused? Should I pay it then look at claiming it back or do you just refuse to pay it, or is £300 acceptable anyway?

I heard that there was a court case coming up which would sort this has that happened yet?

Thanks for any help\updates & sorry if this is already covered but I don't have time to go through 27 pages!
worto.

You can't morally claim anything as you agreed to pay £295 (not £300) when you took out the mortgage and that's exactly what you are being asked to pay now.

worto03

Ah I see - I thought that the whole debate was that they were stupidly high for the little ammount of work involved but I see now it seems more to do with people signing up for one thing then being charged something else.

Thanks I'll wander off into the corner quietly,
worto.

deufman

I Cannot download the template letter to start the ball rolling regarding morgage exit fees.

I Wonder if some kind soul call paste the letter onto here for me so i can copy it and send it off.

Kind Regards

sarah1975uk

Not sure if this has already been posted but if you are claiming off of Halifax for mortgage exit fees the dedicated phone number to deal with getting yourmoney back is 0845 1203 033, hope this helps. Good luck in getting all your money back xx

sarah1975uk

oh my god just called and they are refunding me £100 the fee when i took out the mortgage the fee was £75 when i exited it i paid £175 been told i should receive a £100 cheque within 28 days.