Refund of a High Loan to Value Fee?

driller.drew

My wife and I arranged our first time mortgage with Abbey National almost 6 years ago. As we were borrowing 95% of the value of the house we were charged £1280 fee for the above and this was added onto our mortgage.

At the time we thought this was the norm but obviously we now know this is not the case!! We have been with another lender for the last few years.

There are other threads regarding reclaiming mortgage exit fees but nothing on the above.

Has anyone had any success with claiming this fee back or any comments regarding claiming it back?

Thanks

Drew

andrewbrydon

Sadly no. They buy an "insurance" to cover the shortfall if the property is sold with negative equity

kingkano

It was the norm then, because more and more people need these higher LTVs now, alot of lenders are paying the fee for you or some such... sign of the times is all. Its not been deemed illegal or anything like that, so no claiming back.

MarkyMarkD

It still is the norm. It's just that some lenders either don't charge anything at all extra for higher percentage loans, or don't make higher percentage loans, or (step forward Nationwide) pretend not to charge a higher loan charge (and shout about it in TV ads) but instead charge a higher rate of interest on the entire loan which isn't necessarily any cheaper than charging an HLC in the first place.

There's nothing illegal about any up-front mortgage charge - if you are offered a loan with, or without, any such charge it's your own free choice to accept or reject it. If you accept it, then it's legal and binding.