NEW Mortgage Exit Fees Discussion

Scott

Did you sign a new offer?

wheres_sarah

Just wondering if anyone has been in the same situation and might be able to help?

I remortgaged in December to a variable mortgage to save having to pay early redemption fees. I have just remortgaged again this month as I have bought another flat and Chelt & Glous want to charge £225 in admin fees.

When I called C&G I was told I agreed to that amount when I signed the contract, so I would still need to pay the £225 rather than the £0 they have now reduced it to. Do I have a case? I'm supposed to be moving at the end of next week so I need to get this sorted asap. It would be preferable not to pay the amount that to have to recover it later. Any advice would be most welcome!!!!

dunstonh

Do I have a case?

No. They are required to look at the difference in the contract you signed up to and what they charge now. Not what their current contracts are charged at.

wheres_sarah

dunstonh wrote: »

No. They are required to look at the difference in the contract you signed up to and what they charge now. Not what their current contracts are charged at.

Thanks for your help. I just found the Loan Agreement (I though it was in a box!) and they quote:
Closing Administration Charge.
This fee is payable when you finally pay repay your mortgage in full and covers the administration incurred in closing your account. The current fee payable, which could be different when you come to repay your mortgage is £225.
Is that not ambiguous?!

MarkyMarkD

No, it's not.

That wording was intended to allow them to INCREASE the fee. But the FSA have now effectively outlawed that sort of INCREASE.

Reductions in fees for new customers don't have any bearing on your agreed fee of £225.

madgirlmon

Scott wrote: »

Did you sign a new offer?

as far as I remember I did not sign a new offer, I signed to agree that I could take on the mortgage on my own - it was actually quite a low mortgage so it wasn't really a problem.

matimage

Yay! Just got a letter from Mortgage Express, they are refunding me £100. I asked for £100 plus interest (about £16) but said they wouldn't give me that. I am very pleasently surprised, I wasn't expecting anything!
Thanks everyone.

Gareth56

Easiest £10 I've ever made in <5mins. Not a fortune but it's the principle that counts.

Thanks to MSE

cockbongo

dunstonh wrote: »

No. They are required to look at the difference in the contract you signed up to and what they charge now. Not what their current contracts are charged at.

"what they charge now"
"what their current contracts are charged at"

Isn't that the same thing?

If a clause in a contract says "The current fee payable, which could be different when you come to repay your mortgage" then doesn't that basically say:

"this is the price you'll have to pay now - when you repay your mortgage you may have to pay a different price"

rather than

"The current fee payable is ££££, regardless of it being different when you repay your mortgage"

Sorry to butt in, but I think there's a case here!

longfoot

littlemissnewquay -I dont know whether you still need to know the bank of ireland exit fees in 2002 (just read your post) but I paid £110 which was quoted when i took my mortgage out in 2000. However it looks as though it might have gone up in 2oo2 as I also have an (undated) tariff of charges quoting sealing fee of £145 which is filed with my mortgage statement to 30.4.2002 -but I redeemed in may 2002

hope thats not too confusing and helps you