NEW Mortgage Exit Fees Discussion

BigNige

I wasn't to know about MEAF fee issue that this thread is discussing when I took out the new product.

Had I have known, I would have questioned them at the time.

I think that they have coined the phrase "Mortgage Review Fee" to avoid calling an Exit Fee.

There is no justification for a "review" fee of £300, when they charged me £695 to move mortgage from one product to another. :mad:

BigNige

so the £300 could be seen as a mortgage exit fee for closing my previous NR mortgage

MarkyMarkD

No, it's not an exit fee because it isn't incurred for redeeming a mortgage.

You DID NOT "close your previous NR mortgage". You kept your previous NR mortgage, but moved it onto a different mortgage product.

"There's no justification" - there doesn't need to be. You have the choice of paying £995 in total to change products, or stay on your existing product which is, after all, what you signed up to in the first place.

People need to understand that you agree to a 25 year (or whatever) mortgage. Just because the initial fix or discount is for 2 years doesn't mean you have bought a 2 year mortgage. You've bought a 25 year mortgage where the rate goes up a lot after the first 2 years.

By allowing you to switch products, the lender is losing an awful lot more than the £995 they are asking you to pay.

Most lenders make around 2% in interest margin on an SVR mortgage - that's £2,000 per annum on a £100k mortgage. So you are costing them £4,000 over 2 years by switching to a cheaper mortgage rate. And they are only charging you £995.

Now do you see why it's ridiculous to say that "there's no justification for a review fee"?

I'mcomingbackasaman

I've had one success in reclaiming MEAFs via Abbey who sent a claim form, I sent it back and they reimbursed me £170. My second claim was with Household Mortgage Co. (who were a subsidiary company of Abbey), they've changed their company name and iit is now GE Money Lending.

GE Money Lending stated that the fees charged were fair and directed me to the Financial Services Ombudsman. I wrote to GE Money Lending again, sendng copies of the MEAFs charged and reiterating what Martin has said about them. They wrote back to say my fees were justified. So I have had to send all copies of the letters and mortgage fees charged to the Ombudsman by Recorded Delivery. I've been waiting around 10 days now for a reply so far nothing. I'm going to write to the Ombudsman soon to ask for their comments on it. Has anyone else had to do this?

tripleblack

Really confused, have spent 2 hours reading and still can't find the answers

Can't find statements either, so;

these are my dates, can anyone tell me if i can claim anything? ( i know )

NRock 00 - 02
NRock 02 - 04
Halifax 04 - 07
Halifax 07 - 09

Am i right in thinking there are no MEAFs if you just change products with the same provider? If so i would just be investigating the switch from NRock to Halifax in 04?

Feel a bit daft as i think i have got this all wrong but sure someone with more knowledge will easily be able to help me out.

And finally, this year when i took out a new mortgage with the halifax they charged me a 'Product Fee' of £299 is this kosher?

Thanks so much,
TB

MarkyMarkD

Yes, yes, and yes.

You only have one MEAF - when you left NR in 2004. And you only qualify for an MEAF refund if NR increased their MEAF between 2002 and 2004.

Product fees are not reclaimable - they are optional and you only pay them if you choose a product which has them.

pinklake05

Hi
Could someone advise please.I took out mortgage in 1997 and due to ill health and being unable to work I had to sell my house to paid off the mortgage and rent a flat.Unfortunately my mortgage insurance did not cover me for ill health or redundancy.The mortgage was paid of in 2001.Does the MEAF still apply to me? Thank you.

Noz

rigsby99 wrote: »

hi is it possible to reclaim fees for a buy-2-let mortgage

Buy-to-let mortgages aren't regulated by the FSA so you can ask your lender but there's no promises.

Noz

pinklake05 wrote: »

Hi
Could someone advise please.I took out mortgage in 1997 and due to ill health and being unable to work I had to sell my house to paid off the mortgage and rent a flat.Unfortunately my mortgage insurance did not cover me for ill health or redundancy.The mortgage was paid of in 2001.Does the MEAF still apply to me? Thank you.

Sounds like you would have paid a MEAF, however that doesn't mean there's refund due to you. You need to check your mortgages details for the answer.

MarkyMarkD

MEAFs didn't increase much between 1997 and 2001 for any lender, so any amount you can reclaim is going to be small.

You may not have paid an MEAF at all in 2001 - especially if your mortgage was with HSBC or Nationwide who I don't believe charged them then.