📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

NEW Mortgage Exit Fees Discussion

Options
18788909293146

Comments

  • hi 1st timer please be gentle
    my mortage has now finished its fixed rate this month I was on the variable!!!! im about to switch should i try to stop the fees before they charge me my fee will be £250 with northern rock
    thanks for any help in advance
  • dunstonh
    dunstonh Posts: 119,781 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    hi 1st timer please be gentle
    my mortage has now finished its fixed rate this month I was on the variable!!!! im about to switch should i try to stop the fees before they charge me my fee will be £250 with northern rock
    thanks for any help in advance

    Was the fee £250 when you set the mortgage up on the last fixed rate?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • yes its in black and white, but i admit im not good on all the jargon, and wasnt sure if its an unfair amount theyre trying to claim?
    thanks
  • dunstonh
    dunstonh Posts: 119,781 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    yes its in black and white, but i admit im not good on all the jargon, and wasnt sure if its an unfair amount theyre trying to claim?
    thanks

    If its on the contract at that amount and that is what you are being charged then its not unfair and you cannot claim it back.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • decsdad
    decsdad Posts: 265 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    I think you are being a bit harsh on people who aren't as familiar with things as you are. However, I understand your frustration when people ask for a refund of a fee they agreed to pay in the contract.

    Ok, here goes...I think you are wrong aswell.
    Because it says it in the original contract doesn't mean it is fair. After all, it says in bank account terms and conditions about the charges etc and the banks have repaid how many millions...?

    (none to me I hasten to add, had one bank charge as a student, never again)

    In my opinion its down to the "the fee/charge to exit a contract must be proportionate to the work involved".

    I settled my mortgage in 2005 with BOS, they charged £175, phoned them, said they owed me £50, I asked for a breakdown of the work carried out for the remaining £125 to be sent with my £50 chq. Guess what came, £175 + interest. ( i explained to a supervisor in the call centre that I believed it to be disproportionate to the work involved)

    I also remortgaged with Halifax in 2004 and the same thing happened, but without the interest.

    In summary, I think it is fair that we have to pay the fee we agreed to at the start, but the banks didn't play fair when they charged us more than we agreed to initially. So, they don't play by the rules.


    Paul
    I am now remortgaging from Halifax to RBS and will be doing the same again.
  • LostSocks
    LostSocks Posts: 122 Forumite
    I'd like a bit of advice as to whether to take this further. I wasn't initially bothered until I checked my paperwork again.

    We was with Coventry BS, and redeemed our mortgage in Sept 2006 and paid £195 exit fee. We took the mortgage out in 2003 when mortgage admin fee was £95. However, CBS, are saying that because we took out an advanced load in 2005 and the keyfacts for that advance stated the new fee of £195 then we are due no refund. I've checked our paperwork and I have 3 copies of the original keyfacts (dated Jun 05 when the loan was taken out) that state £0 admin fee and just a redemption fee (which I have no objection to paying as it is stated). Their copy of the keyfacts is dated Oct 07 and has the fee listed at £195. I feel this isn't right, as my copies have £0 but theirs recently printed says £195 and I'm sure they think I won't have a copy of my keyfacts, so won't notice. My understanding is that I shouldn't have to pay any exit fee as my keyfacts say £0 and should get the full refund.

    Should I try again for the whole £195? or leave it as I'm in the wrong?

    Thanks
  • MarkyMarkD
    MarkyMarkD Posts: 9,912 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    What is this "redemption fee" referred to on the further advance KFI? Any "admin fee" is irrelevant in any case.

    You definitely aren't entitled to £195 back; you MIGHT be entitled to £100 back if they didn't inform you of the increase from £95 to £195 as a condition of taking the further advance.
  • tingly
    tingly Posts: 236 Forumite
    Part of the Furniture Combo Breaker
    Hello

    in 1987 had an endowment mortgage for £56,000 with refuge who then did mortgages as well as endowments. was on a variable rate
    in 1993 wanted to raise 25k more and move to the derbyshire.

    on redeeming the refuge mortgage was charged total of £57,675 which made me feel really ill, (and still does) I was so shocked. I challenged and they said it was for admin etc and they could charge what they wanted.

    This was not a redemption penalty as it was on a variable rate. it was just for deed release etc.

    i have got there original agreement and it states "it is hereby provided that if the borrower shall pay to the lender the principal sum with interest thereon as hereinbefore provided and all costs charges and expenses properly incurred by the lender herunder then the lender will at any time thereafter at the request and cost of the borrower duly discharge this security as regards the mortgaged premises and reassign the life assurance"

    does this mean they can charge what they want
    do you think i have any chance of reclaiming some of this?

    would appreciate any help
  • I have a fixed rate mortgage with Newcastle and once a year(October) I can pay off more or redeem with no penalties - I asked over the phone how much left to pay I knew there was only a bit left and was told that with the last direct debit there was a slight overpayment ( couldnt believe it myself) . They want £30 to prepare a redemption statement to tell me how much I owe in discharge fees etc when I questioned the girl as to what things I would be charged for she would not tell me but kept insisting that it would be in the statement - surley they are standard amounts.
    On my original contract it states one amount £295 completion fee will be charged does not mention anything else, not sure if this was the full amount or could more have been added ?

    On their 2006 leaflet charges ive picked out are
    deed production £50
    discharge fee £195
    prep of redemtion statement £30
    This totals £275 - less than the original contract but i dont know if this is the full list they seem to make up titles as an excuse to charge money.

    However Im reluctant to pay the £30 only to be given a list of extras to pay. I did ask how much left to pay and I would send a cheque but they would not tell me.
    what would happen if i didnt pay anymore until they ask for it and then only pay what I think - could they keep the deeds.

    has any one else recently paid off their mortgate with them and has an idea of the costs involved .
    Many thanks for any info.
  • MarkyMarkD
    MarkyMarkD Posts: 9,912 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    @tingly: I simply don't believe that your £1,675 difference between the amount advanced and the redemption balance was an exit fee. I would almost bet you that it was mainly because you borrowed over 75% of the value of the property and it was a mortgage indemnity guarantee premium.

    Or there were up-front fees which you added to the loan rather than paying them off.

    @strawberryberry: The £30 is definitely part of what should be covered under your originally agreed £295, so simply pay the £30 and net it off if they include the full £295 (or amounts which add up to more than that) in the redemption statement. If you don't pay the amount demanded, they won't release their charge on your property and you'll never be able to sell it.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.2K Banking & Borrowing
  • 253.2K Reduce Debt & Boost Income
  • 453.7K Spending & Discounts
  • 244.2K Work, Benefits & Business
  • 599.2K Mortgages, Homes & Bills
  • 177K Life & Family
  • 257.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.