Mortgage Fees: cross posted from House Buying Forum

Melissa177

Hi,

I've read with interest the current battle that some mortgage payers are having with their lenders regarding exit fees. Homeowners won the right to claim back fees that were not included in the original mortgage contract, but imposed afterwards.


I have a slightly different issue, but on the same theme.

I have just bought a property, Scottish Widows is the lender. I received a list of tarriffs at the time I applied for the mortgage and when I signed the mortgage contract for items like "unpaid DD fee", and "property letting fee".

The property letting fee was a one-off charge of 125 pounds, should I wish to rent out my property - this permission could not be unreasonably withheld by the lender.

I am, in the future, thinking about letting out my property (company is thinking about relocating me to Geneva), so I was satisfied that the 125 pound fee was not astronomical.

Yesterday I received another tarriff of charges doc from SWidows, along with my mortgage statement. Now the property letting fee is listed as "up to a maximum of 450 pounds annually"

I am not sure SW can do this - this was not the original T&Cs in my contract.

Can anyone advise? Surely SW cannot hike the charges after I have signed up to them.

I'll cross post this on the Mortgage Board too.

Thanks in advance any advice.

Best wishes,
Melissa

JoeK_3

Melissa177 wrote: »

Hi,

I've read with interest the current battle that some mortgage payers are having with their lenders regarding exit fees. Homeowners won the right to claim back fees that were not included in the original mortgage contract, but imposed afterwards.


I have a slightly different issue, but on the same theme.

I have just bought a property, Scottish Widows is the lender. I received a list of tarriffs at the time I applied for the mortgage and when I signed the mortgage contract for items like "unpaid DD fee", and "property letting fee".

The property letting fee was a one-off charge of 125 pounds, should I wish to rent out my property - this permission could not be unreasonably withheld by the lender.

I am, in the future, thinking about letting out my property (company is thinking about relocating me to Geneva), so I was satisfied that the 125 pound fee was not astronomical.

Yesterday I received another tarriff of charges doc from SWidows, along with my mortgage statement. Now the property letting fee is listed as "up to a maximum of 450 pounds annually"

I am not sure SW can do this - this was not the original T&Cs in my contract.

Can anyone advise? Surely SW cannot hike the charges after I have signed up to them.

I'll cross post this on the Mortgage Board too.

Thanks in advance any advice.

Best wishes,
Melissa

You need to get a copy of the mortgage deed and see if there is a caveat that the fees can be changed by the lender.

Write to Scottish Widows and request a copy.

JoeK

Melissa177

Thanks Joe - I have a copy of the mortgage deed, but it's in the office.

Even if the fees can be changed by the lender, they can fall under "unfair terms and conditions" (there is a discussion about this on the House Buying Forum as well). I thought a one-off charge for 125 pounds was reasonably, but an annual fee of 450 pounds (for what, exactly?), seems excessive.

JoeK_3

Melissa177 wrote: »

Thanks Joe - I have a copy of the mortgage deed, but it's in the office.

Even if the fees can be changed by the lender, they can fall under "unfair terms and conditions" (there is a discussion about this on the House Buying Forum as well). I thought a one-off charge for 125 pounds was reasonably, but an annual fee of 450 pounds (for what, exactly?), seems excessive.

It's doubtfull that you have a copy of the mortgage deed as this is the legal document that you signed with the solicitor.

You may have a copy of the mortgage Keyfacts but that will not be as comprehensive.

JoeK

homer_j_3

SW are well within their rights to change their fees, the FSA will of course want to be satisfied that the fee is reasonable with the work required.

The Fee you quote is not a T&C and it does say upto a maximum. Have you asked SW what the actual fee will be in your circumstances. I would imagine if your company would be relocating you they would cover these fees for you?

Melissa177

JoeK wrote: »

It's doubtfull that you have a copy of the mortgage deed as this is the legal document that you signed with the solicitor.

You may have a copy of the mortgage Keyfacts but that will not be as comprehensive.

JoeK

The document I have is what I call the mortgage contract. Big thick heavy document that I signed when I purchased the property, containing all the mortgage terms and conditions.

Actually - good point: maybe I don't have this document anymore. Maybe it went back to Scottish Widows. Need to check my filing cabinet at work!

Melissa177

homer_j wrote: »

SW are well within their rights to change their fees, the FSA will of course want to be satisfied that the fee is reasonable with the work required.

The Fee you quote is not a T&C and it does say upto a maximum. Have you asked SW what the actual fee will be in your circumstances. I would imagine if your company would be relocating you they would cover these fees for you?

Thanks - I'm just of the opinion that to go from a 125 pound fee to an annual fee of up to 450 (of course, it could be less) is a big jump - I only bought my property two months ago, and so I was surprised by this quick increase.

Company package is still up for discussion - I work for a large multinational, and they have various relocation packages. I would negotiate this come the time. My initial thought was that they would pay living costs in Geneva, leaving me to rent out my property in London.

homer_j_3

yes I understand where you are coming from, it does seem like a big jump but it could have been that fee for years before this change and you are a victim of circumstance and timing here.

I hope that you get it for less than 450.

Are you excited by the prospect of going to another country to work. I did it a fe years ago - only to ireland though but commuted and had a rental place there.

Melissa177

homer_j wrote: »

yes I understand where you are coming from, it does seem like a big jump but it could have been that fee for years before this change and you are a victim of circumstance and timing here.

That did occur to me - I was just intrigued to know whether or not this was fair, given the recent discussion about mortgage exit fees etc.

Are you excited by the prospect of going to another country to work. I did it a fe years ago - only to ireland though but commuted and had a rental place there.

Yes - although it's still up for debate! My company is looking to move the entire department to Geneva (35 of us), or perhaps only half of us. It's still a little way off yet, and I don't know for sure whether I'll be going, but I'm more likely to move than not.

I just don't know anyone in Geneva - I'm worried it might be rather dull!

homer_j_3

thats the reason why I ended up going to Ireland. I took my department out there and set it all up. Was there for 8 months in all.

Before we went, my employer did a lot of consultations with all people that wanted to go and even took us out there for us to look at the place and see some of the sights.

I knew though it wasn't permanent so lived with the distance thing between my firends and family. I really hope that everything goes the way you want it too - I have never been to switzerland but it is somewhere I would like to go.

Language would be my concern going there on a permanent basis but what
city in the world has nothing to do. Cant imagine it being boring.

Melissa177

Thanks Homer.

I have been to Geneva before - it is a beautiful city, although it is somewhat dull, I am told! I speak some French, but thankfully the company provides language courses. Since I am young and single, I don't have to worry about upheaving my family (my parents already live in another country!).

There is a lot of consultations going on at the moment, but I'll have a firm commitment by the end of June as to whether I am going.