Mortgage paid off........nearly

Worried_of_wakefield

Hi all, what should have been a day to celebrate several weeks ago has left a sour taste. With only £1000 ish left on my mortgage I rang my provider for a exact settlement figure which they gave, along with the shock news that a 'admin' fee of £225 would also be due. Whilst i'm sure this is identified somewhere in the T&C's it didn't stop me feeling aggrieved.

I rang them back a week later asking them for a monthly repayment figure based on an outstanding capital of a £1 over the remaining 10 year term ( i,m on SVR by the way). Nearly 50 minutes the operator sought help from her line managers as the computers would not provide such a forecast but confirmed that there were no rules forbidding me to do so.

So I now owe a £1 and shall pay the £225 admin fee in 10year's time, I'm now waiting for next months DD which had better be a percentage of the £1 owed or i'm back on the phone!

Petty I know but having been subject to regular increases despite the base rate not moving gives an element of satisfaction.

In defence of my mortgage provider the young lady handled my call extremely professionally even though I am positive I could hear grinding of teeth.

Lifes_Grand_Plan

Worried_of_wakefield wrote: »

I rang them back a week later asking them for a monthly repayment figure based on an outstanding capital of a £1 over the remaining 10 year term ( i,m on SVR by the way). Nearly 50 minutes the operator sought help from her line managers as the computers would not provide such a forecast but confirmed that there were no rules forbidding me to do so.

Ha ha, great plan - I love it.....

Cotta

No justification for the £250 admin fee, you're right to feel annoyed about this.

pinkteapot

Worried_of_wakefield wrote: »

Hi all, what should have been a day to celebrate several weeks ago has left a sour taste. With only £1000 ish left on my mortgage I rang my provider for a exact settlement figure which they gave, along with the shock news that a 'admin' fee of £225 would also be due. Whilst i'm sure this is identified somewhere in the T&C's it didn't stop me feeling aggrieved.

The new mortgage we're getting is with Santander and one of the fees is a £225 "mortgage account fee", supposedly for setting up the account. By default it's deferred to the end of the mortgage (due on redemption), though we can pay it at the start if we prefer. Is this fee something similar?

Ours doesn't increase over time (e.g. with inflation), so £225 at the end of our mortgage will probably be about the same cost as a loaf of bread. :rotfl:

Tahlullah

That is just beautiful! The aggravation of having to calculate a monthly repayment for the next 10 years on £1 is divine. Plus the cost of having to send out regular notifications on changes of interest rate, your annual statement etc. What happens if you miss your monthly payment, will they attempt to repossess the house? Classic, I can't stop smiling at the madness of it all.

In reality, I guess they will ask for an annual payment.

Please do keep us informed on what they do to resolve this! Oh, and congratulations and best wishes on being Mortgage Free!

edinburgher

I'm amused, but doesn't that mean you're paying the SVR on £225 for 10 years? I.e. are you cutting off your nose to spite your face?

I agree with the others re. the silliness of certain charges (we were charged £25 for a duplicate statement although we never received the original and left it 'too late' to mention it)....

Worried_of_wakefield

No Edinburghur, the admin fee is not due until such time the mortgage has been paid off in full which is £1 over 120 months or there abouts. Hope SVR doesnt go thro the roof it could cripple me!

pawlala

Could you not extend your mortgage term beyond 10 years also?

I have done this type of thing in the past, my first mortgage ended as a £0.18 payment p/m for a good 18 months towards the end.

Worried_of_wakefield

Now thats a good idea pawlala, what sort of response do you think i'll get from them?

HelenDaveKids

We left our last one as owing a pound, as at that time if you owed anything they kept your deeds for free, I seem to think they volunteered this information / option on our last payment. I appreciate this saving of deeds is no longer required. They never charged us interest on the £1. We never got to the "end" as after a few years we borrowed the whole lot (and some) back. Hence still here....

southantrim3

Love it