NEW Mortgage Exit Fees Discussion

MarkyMarkD

cm233lh wrote: »

I just got my redemption statement from C&G. I was expecting the current £250 or whatever, but they've included only £150 which is £50 per sub-account, which is what I was expecting (though not over the moon about).

Just reading Paul's logic above - is £150 proportionate to the costs involved when they would only charge £50 if I only had 1 sub-account? Should I try to negotiate it down before the completion date, or is it best to wait till after it's all gone through and then call up and cry "foul"?

All talk about "proportionate to the cost involved" is tosh. It's not a penalty fee. It's an up-front agreed fee. The FSA ruling explicitly allows lenders to charge precisely as much as they like, as long as they don't increase it after the loan is advanced.

MarkyMarkD

danm wrote: »

I am shortly due to remortagw with A&L.

They want to charge me a £250 'mortgage review' fee.

In light of the ruling re: fees being proportionate to the work involved etc, hs anyone had any sucess in claiming such fees back.

bear in mind that they have not provided me any advise etc. just sent through a list of products available to existing customers on remotgages.

There is no such ruling. This is all mis-interpretation. As I've said before, lenders can charge anything they like for an MEAF. They can also charge anything they like for a product switch fee, or mortgage review fee, or anything else they care to call it.

You have the right to redeem your mortgage (and to pay the MEAF).

You have the right to stay on your current product (and pay no fees at all).

And you have the right to pay a "mortgage review fee", and maybe a product fee, if you want to change products and pay a lower rate of interest than you have originally contracted to pay.

They are all free choices and the relevant fees are legal and non-negotiable.

vitodelfine

Hi All

In 2005 I took a mortgage with Halifax. In the contract, was mentioned that the exit fee would be £150.

Last month my contract ended and I paid the sum. I have tried to call them, but it did not work.

Now, do you think I have any any chance of some refund since I believe I was over charged?

I would really appreciate if someone could help.

Thank you
Vito

MarkyMarkD

You've been answered on the other thread you posted the same question on, vito.

Happy_Gilmore_3

Hi everyone

This is my first ever MSE post, and I'm hoping someone out there may be able to help me...

Following the recent publicity about mortgage exit fee increases, I thought it was worth checking an old Intelligent Finance policy. I paid £50 on exit, but wasn't sure if it was in my original contract. I have a copy of my original mortgage offer but it doesn't mention any exit fee, instead it (very vaguely) states "The Intelligent Finance Conditions 2001 will apply to your mortgage. We set these out in the Intelligent Finance Conditions booklet which we have sent out..."

*** I don't suppose anyone has a copy of the Intelligent Finance Conditions 2001 booklet?*** I rather foolishly got rid of my documentation after I moved mortgage in 2004. If not, don't worry - it was a bit of a long shot.....

I have tried ringing IF and they claim the amount paid was correct (and legal), but the BBC website says in 2002 when I started my mortgage that there was no exit fee for IF - http://news.bbc.co.uk/1/hi/business/4922604.stm#savings

Thanks in advance :-)

A_FIST_FULL_OF_DOLLARS

Hi

ive just changed mortgages

Regarding the list which Martin has put forward, my X-mortgage lender isn't on there.

Leeds Building Society.

Has anyone contacted them, if so did you get a result??? :j

dgward

Hi.
We have a 5 year fixed rate mortgage with Alliance and Leicester. Due to being offered new jobs we have had to move quickly to another part of the country and we are now living in rented accommodation. We are in the process of selling our house and are actively looking for a new one to buy.
I have spoken to A&L about settling the mortgage and they have said we will have to pay the early resettlement fee (several thousands). I have asked if we can keep it open until we find a new house and then port it over but they say no – they can only keep it open for a maximum of 3 months after we complete the sale of our house. I have a couple of questions:

1. Is there any way we can avoid the repayment fee?
   
2. Is it possible to pay off most of the mortgage leaving a small amount that we continue to pay interest on but won’t need to pay the fee for?
   
3. If 2 is possible can we get another mortgage for a new house when we find one?

I would be happy to stick with A&L and understand that we have had a good deal from the fixed rate. I am just not keen to have to pay thousands when our situation dictates that we need to rent for a while. A&L are not being very flexible!

Thanks for any help you can give!

dunstonh

Is there any way we can avoid the repayment fee?

No. Its legal, valid and fair.

Is it possible to pay off most of the mortgage leaving a small amount that we continue to pay interest on but won’t need to pay the fee for?

No. The fee is pro-rata to what you repay.

A&L are not being very flexible!

They cant be. They borrowed the money to lend to you. If you repay it, they still have to pay the interest on the money they borrowed. So the choice is they pay it and spread the cost onto other borrowers or you pay it. So, its only fair you pay it.

Zeusiblue

Hi i checked out the posts on this site regarding claiming of mortgage fees. I found all my paperwork from when i changed my mortgage provider from Northern Rock to Hinckley & Rrugby in 2003. They charged a deeds despatch fee of £80 and a discharge fee of £95. I copied the templare letter and asked for a refund with interest.They replied to say that their discharge of mortgage fee was £100 at that time and will agree to send me a cheque of £75. I have to sign an acceptance declaration within 10 days.They made no mention of any interest to be refunded. I would first like to thank Martin, especially for his template letter. Just wondering if i should sign the declatarion to accept their terms ? Any advice would be greatly appreciated . Thank you

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MarkyMarkD

dunstonh wrote: »

No. Its legal, valid and fair.


No. The fee is pro-rata to what you repay.


They cant be. They borrowed the money to lend to you. If you repay it, they still have to pay the interest on the money they borrowed. So the choice is they pay it and spread the cost onto other borrowers or you pay it. So, its only fair you pay it.

I'm with dunston here. A&L are allowing you to port with a three month gap which is more flexible than your loan agreement requires them to be.
You cannot keep a mortgage going when you don't have a house to secure it against!
The most you can expect from A&L is what they are offering you - the three month gap.