NEW Mortgage Exit Fees Discussion

MarkyMarkD

Not if you stayed with the same lender, on the same property, no. That would be either a product switch fee or an Early Repayment Charge (ERC), neither of which are reclaimable.

yakyak

I am looking to pay my mortgage off in September. I rang yourshire bank today, and they said that I would have to pay £195. This is to release the deeds apparently, though I already have them electronically I don't really need them.

Also on my original mortgage agreement 7 years ago, the fees were nothing. Surely I shouldn't be expected to pay £195 now?

the guy on the phone also said that I could pay the £195, and due to the spotlight currently on mortgage fees, could probably claim it straight back...

Any thoughts..

Noz

kymrob wrote: »

don't know if i can claim
moved 3 years ago repayed old mortgage got a new one.
old mortgage was fixed rate had to pay few hundred to get out of the fixed rate. is this the same thing?

Quite possibly, or could be an early repayment charge

pampam

Abbey National are saying they haven't any record of my old mortgage so are refusing to pay up.
It was taken out in 1998 and I changed to another lender in 2001.
Can they do this?
Thanks
Pam

MarkyMarkD

They don't have to reimburse you for any mortgage closed over 6 years ago - standard statute of limitations.

Many lenders aren't enforcing this, but there's no requirement for Abbey to keep records of an account closed over 6 years ago.

HEATH_2

hi

Just received letter from mortgage peeps bank of scotland who we left in 2003, we paid exit fee of £150.
They say that they will not be paying this as £150 was in the origanal terms and cons and £150 was paid on exit and did not increase so does not apply to us.
This does make sense and was a shot in the dark, but as they want a reply i want to make sure this is correct first - any advice please xx

madgirlmon

:mad: .........How Annoying!

I took my mortgage out with Northern Rock in 1998 (with me husband - now my ex). The exit fee was £75 then.
In June last year I paid £175 to have my ex-husband's name removed from teh mortgage....I had been on the base rate for a while as I couldn't enter into anything or move my mortgage until his name was off.
I moved my mortgage in July of the same year (only a month later) and I was charged £250 exit fee.
I sent of a letter to the Northern Rock asking for the full amount back, clearly stating I was told the fee was £75 back in Jan 1998.
Today I received an offer of £75 from them as they state that my most recent mortgage contract states the fee was £175! They are actually going off the time I had my ex removed from the mortgage. I have telephoned them and asked for a full explanation as there is no way this can be right.....I did not change my mortgage contract, I simply had a name removed from an existing contract.....and paid £175 for the privelidge!!!! That's something else that is a rip-off, £175 to have a name taken off a mortgage because he wasn't paying it anyway! Riddiculous:mad: I am waiting to hear from them!!!!!!!!!

Scott

Removing someone from a mortgage is a significant variation in the contract, and you will have signed new terms, I'm afraid.

MarkyMarkD

It's also a significant increase in risk for the lender, as they only have one borrower to go after in the event of arrears/default. So charging a fee is fair enough IMHO.

@HEATH - what you are being told is correct, so I'd accept it.

madgirlmon

No I am not accepting it, I did not sign new terms, it was the same mortgage, same term, same amount, same rate and yes I provided them with all they needed to prove I could pay the mortgage on my own (as I had already been doing for 3year since my husband left)
Even Northern Rock themselves have told me on the phone it is change of parties, not change of mortgage.....that is why the mortgage dept have spoken to customer service and I have been told they are looking at it again as they should have gone back to 1998.....
And no, I don't think it is fair to pay £175 to have a name removed.....there is not £175 worth of admin goes into it, considering you have to also pay a Solicitor to deal with it all!
I don't give up easy, so I'm sure I will get more than the £75 they first offered.