£295 Fee to Close Mortgage Account

pennypincher3562

Hi There

I phoned up A&L today, to pay off my mortgage in full. The deal I was on has expired, so I didn't expect any fees.

However, I was told that I would be expected to pay a £295 fee, I think they call it the 'account closure' or 'account redemption' fee.

Of course I'd rather not pay it, and was wondering if anyone can think of clever way to minimise it, or get it waived?

Thanks
PennyPincher3562

edinburgher

Isn't that fairly standard? I think our new mortgage has a £315 version of the same thing.

I've heard of people leaving a tiny balance for years to avoid it, but I never really saw the point.

pennypincher3562

Yes, its standard. Though I do think £295 to close an account is a bit steep, and of course would like to minimise it if possible...

Cheers
PennyPincher3562

Hurdler

I agree with Ed - I definately have a fee included in my terms but if you are so dead set against it, I would actually call them and try and get them to waive it. I find that calling them up sometimes and discussing the option somtimes gets results - either way what have you got to lose... oh well... £295 I suppose :rotfl:

Goldiegirl

I can't see a reason for them to waive it - if it's in the T&C then I think they'll enforce it if the OP wants to close their mortgage. It's not fair on all the other customers if it's waived, just because someone doesn't want to pay it!

edinburgher

It doesn't hurt to ask, but I wonder how many people are actually successful with such requests. After all, the details will have been in the original mortgage paperwork.

To the OP - is it a psychological thing that makes you begrudge paying it? I.e. 'I've paid this blimmin' mortgage for xx years, why should I have to pay another £300?'

Genuinely curious

pennypincher3562

Hi

I know in my original post I mentioned 'waived' but to be honest I was realistically hoping to find ways to get it reduced. After making enquiries, I believe that it can be reduced, and is partly dependent on the remaining balance at time of account closure (don't quote me on this.)

Why did I not want to pay the full £295? Eh, after all, it's a lot of money for someone to carry out what I imagine is an admin task? I also thought I'd already paid them quite handsomely, after fully paying off a mortgage :-)

I never used to try and get fees waived in the past, but have been successful in getting various bank charges waived, why throw money away?

In the past I would have just accepted all fees without question, but I think that's the wrong attitude, especially since many of these fees are to carry out what I presume are basic admin tasks.

Cheers
PennyPincher3562

edinburgher

I like your thinking, it would be nice if you let us know what the end result is :beer:

Vomityspice

What we did was simply left £1 owing on the account (which was helpful later when we refurbished the house!). That way you are letting inflation decrease the value of the fee. In 20 years time , £295 may potentially be the cost of a bag of chips.

pennypincher3562

Thanks VomitySpice. I mentioned that tactic to them on the phone, and I think they've got that one covered I'm afraid.

I was half asleep when I called, so I will phone and ask again tomorrow, to see if I can use this trick.

Cheers
PennyPincher3562

Eydon

You need to check your mortgage paperwork and find out what the fee was at the time you took your mortgage out.

A&L might be different but I know with Barclays you now only have to pay the fee that was in force at the time you took your mortgage out rather than whatever the fee is today.