early repayment charges ?

yates123

i have written a letter to my previous mortgage lender as i paid a redemtion of £1500.00 they have written back to me and offered me a good will gester of £50.00 if i sign and return a letter stating i settle my complaint and dont have any claim against them, there is no letter two on the web site and dont know what to do next does any one else know ?

they did state in the letter that i over paid £50.00 on my mortgage exit fee so i replied asking them to send me a cheque for the £50.00 and told them it is not a good will gester as this money is owed to me hopefully i will receive that cheque soon.

Other than that is there any letter to claim back an early repayment Charge ?

dunstonh

£1500 suggests that includes an early redemption penalty and those are not unlawful and are a contract event.

You are neither morally or legally entitled to have those back. The £50 sounds like a fair result if you paid £50 more than the fee that was in place at the time the mortgage was taken out. The figure sounds about right.

kingkano

I dont believe early repayment charges for leaving a deal early (fixed rate etc) are illegal. The charges that can be claimed back is the redemption charge.... this is because alot of people were told it was x (say 100) at the start of their mortgage. 4 years later when they did remortgage elsewhere, the bank had since changed this to 250 and charged them that..... hence you can rightfully claim back the 150 in difference. DOes this help at all?

1500 sounds alot more like an ERC than a redemption charge??