Mortgage exit fee - A&L

gpiddington

Hi,

Wonder if anyone can help re Alliance and Leicester Mortgage exit fee. Had a mortgage with them for some years, then in Jan 07 moved house and signed for a new advance with mortgage exit fee of £295. Paid off mortgagde in 2011.

Sent letter to Alliance and Leicester/Santander asking for refund but they replied that I signed for new higher fee in 2007. gave me details of Financial Ombudsman.

Do I have any chance of getting my fee back?

thanks

Gary

dunstonh

gpiddington wrote: »

Hi,

Wonder if anyone can help re Alliance and Leicester Mortgage exit fee. Had a mortgage with them for some years, then in Jan 07 moved house and signed for a new advance with mortgage exit fee of £295. Paid off mortgagde in 2011.

Sent letter to Alliance and Leicester/Santander asking for refund but they replied that I signed for new higher fee in 2007. gave me details of Financial Ombudsman.

Do I have any chance of getting my fee back?

The FSA ruling was that you are only entitled to get back anything above what was agreed at the point of taking out the mortgage or the last deal bought (whichever later). A&L had been £295 for very many years. So, if it was £295 when you bought that mortgage deal and you paid £295 on exit then you are not entitled to anything back as no rules have been broken.

If your last contract said say £195 was the exit fee and you paid £295 then you would be expecting to get £100 back.

So, based on what you have said, you are asking for money you are not entitled to and therefore would not expect you to get it. The FOS may give Santander a last chance to pay it before they levy the FOS charge. However, if Santander decide being right is more important then the FOS will agree with their position and your complaint will be rejected.