Mortgage document from 1996

fluffymuffy

I've just been rooting through the filing cabinet and have found the confirmation of our Nat West mortgage from the house before last.

It says...

i) Selected repayment date is 5th monthly

ii) Advance amount is 51225.00

iii) Deductions :
Fees

Remittance £30
Advance amount to be sent to your solicitor £51195.00

iv) Additions :
MGI £425.48

Total amount borrowed £51650.48


I'm just wondering what "MGI" means. I remember feeling aggrieved about it at the time but I've no idea what it is. I'm hoping it's some charge we shouldn't have been charged. Does anyone know?

We paid it off in 2005 and were charged a "sealing fee" of £225.00 (I have the document for that too).

dunstonh

I'm just wondering what "MGI" means.

It is a mortgage indemnity guarantee.

I remember feeling aggrieved about it at the time but I've no idea what it is.

How can you feel aggrieved about something you dont know?

I'm hoping it's some charge we shouldn't have been charged. Does anyone know?

You should have been charged it and there is nothing wrong with it.

fluffymuffy

dunstonh wrote: »

How can you feel aggrieved about something you dont know?

I do remember it was something we had to pay for which we didn't need.

I've just found these documents and am wondering if there's something miss sold I can claim back. No harm in wondering.

The "sealing fee" looks more promising - http://forums.moneysavingexpert.com/showpost.php?p=53051115&postcount=3662

dunstonh

The "sealing fee" looks more promising - http://forums.moneysavingexpert.com/...postcount=3662

The FSA ruling on exit charges is that you should be charged the charge that was in place at the point of your application or later deal if you purchased one. If there is any difference, the difference should be refunded.

So, in your case, if £225 was charged and that was the amount in place when you started the mortgage or later deal then you are not entitled to a refund. If it was say £150 at point of application or later deal and you were charged £225 then the lender should refund £75. The figure they use is the last agreement you signed. So, if you bought a new deal with that lender then they use the later deal terms.

fluffymuffy

The original mortgage offer has no mention of exit charges at all.
I'll fill in Martin's pro-forma letter with £0 as the agreed charge.

roonaldo

the £225 fee will be in the mortgage terms and conditions booklet not the mortgage offer. only if its not could it be refunded.

it was correct to charge you a mortgage indemnity fee. its a fee charged on high loan to value mortgages, so to avoid it either borrow less or go elsewhere for the mortgage.

fluffymuffy

Bingo!!!!

Nat West sent a letter saying they're sorry and have credited us with ...

£360

That's the £225 we paid, minus the £75 we should have paid, plus compound interest at 8%.