NEW Mortgage Exit Fees Discussion

mortgagadvicecenter

Make sure when your financial advisor gives you the product illustration that you check the exit charges on the fess section. Some lenders will offer products with no arrangement fees but will charge an eit fee which is less visible to the consumer when purchasing a mortgage

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mountainchrisriver

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davisjul

I have had a letter back from Abbey to say that as we took out additional lending during the term of the mortgate we would have been told the additional lending specifid a mortage repayment fee of £225. This was about 5 yrs ago so cannot remember. Can I dispute this

richnelaine

I contacted Northern Rock Re MEAF and received a letter back saying that the Discharge of Mortgage fee was £175 (when we switched our mortgage 2004) and they applied a fee of £195 - so were happy to refund the £20 difference. Why does a Discharge of Mortgage differ to a Mortgage Exit Administration Fee - surely it is the same thing but with a different name!Would be glad of any help with this.

Casadeora

For Northern Rock guidance.
5/9/07 - spoke with Northern Rock Mortgage accounts team, who advised they will only respond if you write in. They will investigate the matter accordingly. The quoted the FSA ruling in as much that on the original mortgage offer, you would have been quoted one figure, and on the Mortgage Exit fee, if it was different, you would be a due a refund. Of course, this may or may not be higher.

WRITE TO
NORTHERN ROCK
CUSOMTER SUPPORT TEAM
Northern Rock House
Gosforth
Newcastle Upon Tyne
NE 3 4PL

"After the recent FSA statement on Mortgage Exit Administration Fees (MEAFs), I am writing to Challenge the discharge of mortgage fee made to the account.

I look forward for a full response to this letter within 48 hours."

LISA68_2

Hi there can anyone help me on this please

It has taken 2 months to get a reply from birmingham midshires i eventually had to make a complaint to their customer relations i phoned regarding exit fee. Received a reply today stating that difference they can refund £50 as contract stated £100 i paid £150 but they want me to sign stating this is full and final settlement (just like my bank charges letters) and that i will not continue with any complaints against birmingham midshires, halifax or any of their subsidiaries, thing is i have a case going through with halifax visa (credit card) that i have just filed a judgement against as not refunding my charges at all.

Are birm. mid. allowed to do this as everybody else i know regarding exit fees they have just been sent a cheque.

Dont want to sign as it might mess up my credit card claim thanks for advise

MarkyMarkD

Just amend it to read "I will not continue with any complaints ... in respect of this mortgage account" and I'm sure they will settle your claim.

LISA68_2

MarkyMarkD wrote: »

Just amend it to read "I will not continue with any complaints ... in respect of this mortgage account" and I'm sure they will settle your claim.

Thanks for the advise i will amend the letter

tinax0

If the fee was £250 when you took out your mortgage, and they are charging you £250, then that's the end of the story. There's no justification for you to pay any less, so you only get a refund of the amount between the charge you paid and what it stated in the contract.

I'm about to claim MEAFS back for the 5 mortgages I have had in the passed 6-years, however took the statement off one of the pages on this thread.

My understanding of the FSA directive was that the MEAF was an admin charge for which the FSA could see no reason in this admin charge being more than £50.00 - no matter what it said in the contract - and that in charging more than £50.00 the customer who claims a refund should get either a) all monies plus interest, or b)all monies - less £50.00 - plus interest.

In my understanding It's a bit like bank charges - it was in their terms and conditions that they could charge you great amounts to bounce chqs etc, but other legislation ruled these terms and conditions unenforceable- therefore when claiming back meafs the max meaf we should have had to pay £50.00 - all the rest is to be refunded, plus interest. If they dont agree to this then a complaint should be escalated to the FSA where the FSA will request the lender to justify the charges on your account for the work done.

AM I right or mis informed?

dunstonh

My understanding of the FSA directive was that the MEAF was an admin charge for which the FSA could see no reason in this admin charge being more than £50.00

That is incorrect.

In my understanding It's a bit like bank charges

That is incorrect. Its nothing like bank charges as they are a penalty charge. This is an admin charge.

AM I right or mis informed?

The FSA have stated that the charge at the start of the mortgage (or current mortgage deal if newer) is what should be levied. They would allow for a reasonable increase over time (inflation basically) which they would sanction. Unreasonable increases would not be sanctioned.