NEW Mortgage Exit Fees Discussion

[Deleted User]

MarkyMarkD wrote: »

Not to mention that any claim is (legally speaking) statute barred if over 6 years old so a claim from 11 years ago is way out of time.

I have just made a successful claim to Alliance & Leicester for a mortgage that ended 8 years ago, so I would not necessarily be put off by the statute of limitations.
Regards.
CR.

MarkyMarkD

I'm sure that many lenders are not enforcing the 6 year limit, but others are doing. The amounts involved also aren't very large for claims over 6 years old, so it's less worth bothering.

[Deleted User]

viewsonice wrote: »

Hi please can anyone help, I asked Alliance&Leicester what my start fee was and the exit fee and to send me any differene back they said they have a team that deals with this and i would get a reply back. I recieved a letter stating, Alliance&Leicester first introduced a single administration fee of £195 from 5 January 2004 called the Early closure Administration charge and this fee was increased in August 2004 to £295. However, we have decided to reduce the fee payable to customers who took out their mortgage before August 2004 to the original level. Having reviewed our records, I am pleased to enclose a cheque for £10 refunding the difffernce between the fees in place at the time you took a mortgage with us compared to the £85 fee that was incurred on closure of your account. If I have not heard from you within the next 7 days, I will regard your coplaint as closed. I have not got any proof how much I paid them but I think I paid the full amount. Has anyone else cliamed back during this period with Alliance&leicester and got back more money than £10. Thanks ViewSonic

It's not clear from your post when your mortgage started and finished but my mortgage ran from 1990-1999 and I received a £65 refund.
Regards,
C.R.

paulfletch

Hi all, hope this isn't going to sound stupid but.... I remortgaged last year and because we had to do it quickly the interest rate we got was very poor, we are now remortgaging again and have found in the initial contract that if we remortgaged or paid the mortgage off within six years we have to pay over £9,000, is this the exit fee that this thread is about and does this sound right/legal??? Any thoughts would be appreciated,
Paul

dunstonh

paid the mortgage off within six years we have to pay over £9,000, is this the exit fee that this thread is

That is not the fee in question.

does this sound right/legal???

Its perfectly legal, valid and fair.

You go into a deal to get better terms and the lender can offer those terms by making sure you stay with them for a period. If you leave in that period, the lender faces costs. That is what you are paying for.

chiesam

I recently saw your interview on gmtv regarding unfair mortgage exit fees. In 2006 I changed my mortgage from the Abbey National to Yorkshire Building Society. I noted that my original contract with Abbey stated £85 yet I had been charged £225 on departure. I wrote using your sample letter however they have responded stating that my claim is inelligible. This was due to the fact that I took out a further loan with Abbey in 2005 This loan was used to provide a further advance and repay my existing mortgage. The new contract stated a fee of £225 I assume their claim that I am inelligible is correct. I would appreciate your advice before I give up. Thanks.

Noz

chiesam wrote: »

I recently saw your interview on gmtv regarding unfair mortgage exit fees. In 2006 I changed my mortgage from the Abbey National to Yorkshire Building Society. I noted that my original contract with Abbey stated £85 yet I had been charged £225 on departure. I wrote using your sample letter however they have responded stating that my claim is inelligible. This was due to the fact that I took out a further loan with Abbey in 2005 This loan was used to provide a further advance and repay my existing mortgage. The new contract stated a fee of £225 I assume their claim that I am inelligible is correct. I would appreciate your advice before I give up. Thanks.

That sounds correct, assuming that the new contract did indeed state £225

paulfletch

dunstonh wrote: »

That is not the fee in question.



Its perfectly legal, valid and fair.

You go into a deal to get better terms and the lender can offer those terms by making sure you stay with them for a period. If you leave in that period, the lender faces costs. That is what you are paying for.

!!!!!!!!!:mad: Legal and valid maybe but fair I doubt it!!

MarkyMarkD

If you sign up for a mortgage, paul, without noticing that it has a £9k ERC, that is scarcely anyone else's fault.

It IS fair for mortgages to have ERCs for early exit from a special deal, precisely because without those ERCs the lender couldn't afford to offer those special deals.

If you think that ERCs should be outlawed, then everyone will be paying SVR like they were 20 years ago.

mr_lordi

hi, i am looking for advice on my claim. i have just recieved a letter from the bristol & west on saturday and am a little confused..... it says, after the usual start to a letter about how much work goes into exiting mortgages and their rights etc etc . that after reviewing our records i note that whilst your your mortgage was completed on 20-03-03a variation was made to your mortgage on 03-12-03 due to a home improvement loan the (mea)fee at the time of the advance was £200 this was illustrated in our leaflet ( dont remember) as a gesture of goodwill i will offer you £45 being the difference between £245 that you was charged at the time you paid the mortgage and £200 that was quoted ( dont remember ) on the further advance, do other posters think i should accept this offer and move on or look into it further... im not really sure what to do next or what to say, any advice is much appreiciated.....