Northern Rock Offer, is this right ?

alison74

I have tried to work through the minefield that is reclaiming my Mortgage Exit Fee but everything is very confusing for me.

I sent the letter off to Northern Rock 2 weeks ago, claiming back my MEAF of £250 (or part of it as they can't justify £250 for some admin etc)

This morning a letter came through saying that 'at the time your most recent mortgage contract began, the DOM fee was £175. I have arranged to refund the difference between the amount that we charged you £250 and the fee that applied at the start of this mortgage contract (£175)

So I can send you a cheque for £75 please sign the enclosed........... etc etc

Now, I know I do not know the first thing about this, but am I not being ripped off here ? I have paid £250 for me DOM fee and they are suggesting they pay a difference ?! They have not justified costs etc.

Although I would be happy with £75, should I ask them to explain it to me and why I am not getting closer to the £200 mark (allowing for £50 for admin etc) ?

Any advice would be greatfully received, or to point me to a thread where this has been answered already. I did do a search, but just got confused with everything as banks etc are not my forte.

Thanks in advance

Kurt_Hamster

As far as I'm aware a Mortgage Exit Fee is a service fee and can't be reclaimed.

You can only claim fees that are punitive, e.g. late payment fees.

alison74

Thanks, but according to Martin's article, they can be partially claimed back as they cant justify charging £250 for a few pieces of admin.

Can anyone clarify this ? Should I take the £75 they are offering ?

Kurt_Hamster

You may be better served if you ask in the mortgages board

http://forums.moneysavingexpert.com/forumdisplay.html?f=15

kingkano

alison74 wrote: »

Thanks, but according to Martin's article, they can be partially claimed back as they cant justify charging £250 for a few pieces of admin.

Can anyone clarify this ? Should I take the £75 they are offering ?

Are you confusing bank charges and MEAF? I thought basically that you can claim the difference between your contracted MEAF and whatever they try to charge you at the time (which is what they have offered you). I dont think Martin has argued that like bank charges they are unfair....

alison74

kingkano wrote: »

Are you confusing bank charges and MEAF? I thought basically that you can claim the difference between your contracted MEAF and whatever they try to charge you at the time (which is what they have offered you). I dont think Martin has argued that like bank charges they are unfair....

Perhaps I am confusing them !? It's just ALL very confusing. I'll still be happy with £75 !! I have no bank charges to reclaim.

MuDvAyNeX

You can claim the difference to what you should have paid and what you did pay, this is what NR have offered you.

Be happy they have not made you just through hoops for your cash

Its not unlawful to charge an Redemption Fee, but if you paid more than you agreed when your contract started they have to refund the difference.

alison74

Thanks, that explains it clearly to me