NEW Mortgage Exit Fees Discussion

corsagirl_2

Hi,

I got charged a £195 "Early Closure Administration charge" by Alliance and Leicester in 2004. Rung them at time and told them that as far as I was concerned I was out of any tie ins etc, they said it was a standard fee charged on all exits.

After reading board I rang A&L who agreed I would be entitled to a small refund, but would need to put in writing. Not sure why as others seem to have resolved on phone.

My question - before I write in any clue how much will get back or shall I stick out for the full £195.00?

Many thanks.

dunstonh

My question - before I write in any clue how much will get back or shall I stick out for the full £195.00?

Why do you think you are entitled to the full £195 when the FSA guidelines on this state it is only the difference between what it was when you started the mortgage deal and what you paid?

corsagirl_2

Hi,

I'm only asking due to the vagueness of the person and her not giving me a figure when I asked other than "small refund", and didn't know if anyone else has been successful with them or not. Took mortgage out with them 2000/01 time, at time I was told no fees after initial year, hence question about all. I can't get hold of paperwork at moment but wanted to get letter off asap.

Thanks

MarkyMarkD

You don't need to write a letter. Phone again and speak to someone who knows what they are talking about. The first member of staff must have just been a numpty.

When they said "no fees after the initial year" in 2000/01, they didn't mean MEAFs, they meant ERCs.

corsagirl_2

Will try ringing again, thought they may have asked me to write as I have moved since closing mortgage, even though could quote mortgage ref number, old address and their security questions.

Mine was a flexible mortgage, hence part of my thinking of all fees as well I suppose, ie they are designed for you to pay more if you want so its reasonable to expect you may pay off quicker and the mortgage advisor clearly stated no fees/penalties etc !!

Thanks

buddy1_2

Hi, in 2000 i exited from a 10 year fixed rate mortgate that i had only signed up to a year earlier. they hit me for 7 grand early exit charge. Am i able to claim any of it back now or is it 2 late?
Cheers

dunstonh

buddy1 wrote: »

Hi, in 2000 i exited from a 10 year fixed rate mortgate that i had only signed up to a year earlier. they hit me for 7 grand early exit charge. Am i able to claim any of it back now or is it 2 late?
Cheers

Nothing to do with timescale. The charge you paid was an early redemption charge and that is totally acceptable and quite justifiable. There is no way to claim that back.

buddy1_2

Thanks Duns

snowpea_2

used the template from moneysavingexpert to write to northern rock last week, asked for refund of 250 pounds they chartged me as a MEAF in 2006. They very promptly replied (considering i live in australia!!) in writing stating that;

'The financial services authority recently published the findings of it's investigation into DOM fees charged within the industry. Following the guidance issued by the Financial Services Authority, Northern Rock is charging the DOM fee that applied when the loan began or when we last ammended the contract. The DOM fee was 195.00 GBP at the time your most recent mortgage contract began.'

Hence they are offering me the difference of 55 quid - do i accept?!!!

dunstonh

Hence they are offering me the difference of 55 quid - do i accept?!!!

Why wouldnt you? You are not entitled to any more.