Mortgage Exit Fees MEAF

cbrpaul

Does anyone have any advise or know of a template letter I can use to request what I feel is a " disproportional charge " of £295 for merely exiting my mortgage with what was A&L please.


Many thanks

dunstonh

On what basis do you feel it is disproportionate? The regulator looked at these some years back and made a ruling but it never ruled they were disproportionate.

The regulator stated that the lender could only charge the fee that was in place when the mortgage contract was agreed or a later deal was bought (whichever was the latest). A&L deals were £295 for a very long time. So, chances are your contract said £295 and you paid £295. So, on that basis they have complied with the the regulator findings. However, if your contract said £50 and they charged you £295 then they should refund £245.

Pricing of mortgage deals was factored over the initial charge, rate and exit charge. Some lenders had higher initial and lower exit or vice versa. So, the charge didnt just reflect the work done at the end but included part of the package. A&L used to market that if you kept on buying new deals with them when the old one expired you would avoid the exit charge each time until the very end. It was popular.

By all means, write your letter but be aware that what you asking for is an area reviewed by the FSA and not something they had an issue with (at least not matching your views)