NEW Mortgage Exit Fees Discussion

lvb7533

I note from Martin's site on MEAFs that my old mortgage provider, C&G used to charge £225 to repay a mortgage, and now charges £0. Can this be taken as an admission that the £225 chrage was unreasonable to begin with, and therefore do you think it is possible to reclaim the £225 irrespective of what the original contract specified??

MarkyMarkD

@Mandy - they are incredibly unlikely to have refunded you the wrong amount. So the £25 payment means that when you took out your mortgage, you agreed to pay £75 and they over-charged you by £25 when you in fact paid £100.

@lvb7533 - NO. Just because a company has decided due to a policy change to charge new borrows £Nil doesn't make the original contractually agreed amount void. It's no different to M&S selling a shirt in the sale for £9 - it doesn't mean everyone who paid £25 is due a refund of £16.

Wynny

My current deal with A&L finishes end of Feb so I called them to ask what they could offer me. They said that they can "review" my mortgage with me but will charge £250 (what a rip off!) then I would have to pay any arrangement fee for a new deal. So I asked what I would have to pay to exit and they said they charge £286 exit fee (again a rip off). Has anyone else been charged this and did anyone contest it? I don't have my contract to hand so can not check what was in it to start with!

MarkyMarkD

Maybe if you read the original article, you wouldn't need to ask the question.

You will have to pay the fee originally agreed when you took out the mortgage. It definitely won't be £286. It's more likely to be £295 and certainly is if your "deal" is a 2 year one.

Wynny

Pls be nice to all MoneySavers. There's no such thing as a stupid question, and even if you disagree courtesy helps.

Try reading this before being sarcastic!

dunstonh

Wynny wrote: »

Pls be nice to all MoneySavers. There's no such thing as a stupid question, and even if you disagree courtesy helps.

Try reading this before being sarcastic!

Please be nice to the regulars who spend their time on the board answering these FAQs time and again.

Martin has also spent time writing an article on this from which this thread is linked. The answers are in the article and dozens of times in the thread.

laura_williams

hello, can anyone tell me if a mortgage company can charge one months interest as well as a mortgage exit fee. i have been with my mortgage company for three years at a whopping 11%. I was tied in for three years of a 25 year mortgage. i made all payments for three years and have now found a suitable new mortgage. yet the old company are charging 190 pound plus 665 pounds for me to leave? can they do this. i have top pay nearly a thousand for the privilage of leaving a company who have sqeezed the money out for years? thanks

Noz

what are the terms and conditions of your mortgage? If this is what you agreed to then it would stand. You need to check what your original doumentation says for us.

MarkyMarkD

As Noz says, it's down to your original terms. Many lenders used to charge interest up to the end of the month of redemption - which isn't the same as charging a month's penalty interest, unless you choose to redeem on the first day of a month. Timing your redemption appropriately may save you some money.

But if it's a pure one month penalty for redemption at any time, plus £190, and it says all of the above in your mortgage offer, then it's binding. Sorry.

MarkyMarkD

Wynny wrote: »

Pls be nice to all MoneySavers. There's no such thing as a stupid question, and even if you disagree courtesy helps.

Try reading this before being sarcastic!

Hi Wynny and welcome to MSE.

The correct way to use MSE is as follows:

- look at Martin's articles, on the main site (not the forums) and see whether he answers your questions;
- failing that, search the main site using the search facility at the top right of this screen to see if you can find a relevant answer; and
- failing that, look at the posts in a relevant forum to see if there's a relevant one. The most frequently referred to ones are "sticky" threads at the top of each forum's thread list. This is a sticky thread;
- having identified the right thread for your question, read the first few pages of posts to see if your question has already been asked - and answered (it has been, by the way).

This thread runs to 1,000 posts. At least 900 of them are unnecessary and a complete waste of space including yours, because they were answered by Martin's original article and/or by an earlier post in the thread.

Repeating questions because you don't know how MSE works, or because you didn't bother to look for the answer before repeating yourself, merely clutters up the forums and makes it harder for the next person to find a quick answer to their (identical) easy question.

Despite your question being unnecessary, I answered it anyway, and courteously. I also reminded you that there is forum best practice which is not to ask unnecessary questions which have been posed dozens of times before.

I hope that you'll find MSE easier to use next time you have a question - and that you'll find the answer without having to post something which has been covered before.