Loan to value fee refund

sipop

Could anyone give us some advice as the whether we would be able to have our LTV fee refunded.
We took out an endowment mortgage in 1989, this was for 100% of the value of the house therefore attracted the LTV fee.

In 1999 we remortgaged with another building society offering a lower interest rate, because we were paying only the interest, and the value of our house had not increased we paid a further £600 LTV to the new lender.
In 2003 we were advised that our endowment had been missold, the outcome being that the mortgage was converted to a repayment reverting to 1989. This then meant that we would have paid the mortgage for 11 years which would have taken us below the threshold in which LTV would have been applied.
Would we be able to claim back this fee plus the 15 years interest.

kingstreet

The mortgage indemnity premium was charged in return for a higher loan to value than you would have been given without, so it was an alternative to a bigger deposit.

The cover was designed to protect only the lender and you derived no benefit from it.

However, your choice at the time was a bigger deposit or an alternative lender and it cannot be "reclaimed."

dunstonh

Could anyone give us some advice as the whether we would be able to have our LTV fee refunded.

No. The fee is considered fair and lawful. You had a choice at the time to increase your deposit or pay the MIG.

Your decision to remortgage with another lender was a choice you made. Not one the original lender made. Had you stayed with the original lender and bought a new deal from them, you would not have paid the MIG a second time. So, it could have been avoided but you chose not to. The original lender is not responsible for that.