Santander Mortgage Exit Fees

Ximian

I've read the article regarding the MAEF listed here: http://www.moneysavingexpert.com/reclaim/mortgage-fees

My current mortgage (which was fixed for 5 years) with Santander will be coming to an end soon and I have read that there is a £225 early redemption charge/mortgage account fee. The mortgage was originally with Abbey. The article listed above mentions the same amount that has been stated on my paperwork: £225. Just to confirm, will I be eligible to have this fee reduced to £85 if I change mortgage providers? I believe that I can but wanted to make sure before I switch providers as I would like to factor in any additional costs involved to switch providers.

TIA

Wh05apk

When you took the mortgage what was the amount quoted on the KFI?

Lenders can charge whatever they want (within reason) provided you are informed up front, they are allowed to increase charges reasonably, the issue previously was that lenders dramatically increased their charges which was unreasonable, hence had to refund charges.

Ximian

Thanks Wh05apk. I have the paperwork with me now and the KFI states that the fee is £225 for the administration of the account and can be deferred until the end of the mortgage. It's interesting as I was with NatWest previously and was only charged £85 for a release of deeds. Just wanted to check that the £225 was justified and if I could perhaps claim it back according to the article I read.

Wh05apk wrote: »

When you took the mortgage what was the amount quoted on the KFI?

Lenders can charge whatever they want (within reason) provided you are informed up front, they are allowed to increase charges reasonably, the issue previously was that lenders dramatically increased their charges which was unreasonable, hence had to refund charges.

kingstreet

As long as the payment quoted at the exit is the same as that quoted at the point you applied for the mortgage, or transferred to that particular product, it is payable.

The FSA ruled only that lenders could not increase fees mid-term, not that they could not charge them.

Lenders do not have to charge the same as each other. Some higher, some lower, some charge nothing.

Ximian

Thanks for clarifying kingstreet.