Redemption Administration Charge / Santander

acercon3

We are on the last lap with our mortgage , due to be paid off during October.
Last week I contacted Santander for a balance enquiry and the chap on the phone quoted me my balance plus a RAC of £ 295 as an illustration of what it would cost to pay of as at that time.

I seem to recall an earlier telecon that I had with someone else at Santander last year and during that converstaion I was told that the RAC would not be applicable as our mortgage had gone from being on a fixed rate deal to the standard variable rate.

We are still on the SVR , is the RAC applicable ?

_Andy_

Sounds like they/you have confused the early repayment charge (which would apply during the fixed rate period) and the account/release fee (which I thought was £225 but hey) which would apply at any point (assuming it was on your mortgage KFI/offer).

I would call them back to confirm/clarify.

kingstreet

I agree. Early repayment charge is made only on early redemption during any fixed or discounted rate period. The deeds release, or mortgage account fee would be payable on top.

After the ERP period ends, the other fee is still payable right up to the end of the term as it represents the cost of closing the account and removing the charge over the property.

In 2010, the fee was £225. It is still £225 according to a KFI I produced yesterday. Was this an old A&L account, as its possible their final fee was higher?

dunstonh

£295 is a MEAF. The description of the telephone call is an ERC. So, like those above, this does appear to be a confusion over the two charges that can apply.

kingstreet

I've just checked an old A&L KFI. The "RAC" is their charge and £295 is the correct amount too.

acercon3

Thanks for getting back to me all.

I'll ask for a clarification but do expect that I'll have to swallow this charge ultimately.