Santander - Mortgage account fee

Kraftty

A little disgruntled after calling Santander (my current mortgage provider) to arrange a fixed rate mortgage, was given info. on their products, chose one without a fee - and then when I got the paperwork through they'd slipped a £225 Mortgage Account Fee in there.


Called to question this and to ask for a breakdown in what exactly I would be paying for and was told repeatedly that it was an 'admin' fee (which of course could mean anything!).


Just wanted to know if anyone else has experience of this and whether this fee is justified - and also whether other mortgage lenders charge similar fees....? (i.e. if I go to another lender will I just get more of the same).


Thanks!

Thrugelmir

Are you referring to an exit fee at the end of the mortgage term?

Mortgage_Mark_2

That's standard for any lender. Halifax charge £295, Clydesdale Bank £195.

It's what used to be called a 'Deeds Release Fee' although they now justify it by saying that it covers the cost of setting up, administering, and closing down the mortgage over your entire term. You will never, ever, pay it until you close down that mortgage, and no interest is charged on it.

SteelGoon

Make sure you keep the paperwork that states how much it is in case they try and increase it over the life of your mortgage.

Some lenders did this in the past according to this site and had to back down once the proof was shown to them.

My Santander mortgage shows that same amount for MAF.

amnblog

This is a fee you settle on the way out not on the way in.

Kraftty

Thrugelmir wrote: »

Are you referring to an exit fee at the end of the mortgage term?

They call it a 'Mortgage Account Fee'.... 'for provision and general administration of your mortgage. This fee can be paid on completion or deferred until the end of your mortgage'