Mortgage expiry fees

Moneymagnet2

Paid my mortgage with Santander for 25 years solid and when it comes to the last payment, guess what? a £225 administration fee for the privilege of paying off my mortgage. I'm told that they will write to the Land Registry to inform them they have no further interest in the property for free. Yipee!!... Except I've just been told I've got to pay £225 for administration. :mad:

Southend1

Moneymagnet2 wrote: »

Paid my mortgage with Santander for 25 years solid and when it comes to the last payment, guess what? a £225 administration fee for the privilege of paying off my mortgage. I'm told that they will write to the Land Registry to inform them they have no further interest in the property for free. Yipee!!... Except I've just been told I've got to pay £225 for administration. :mad:

I think this is pretty standard and should be detailed in the terms and conditions of your mortgage

Land_Registry

As Southend1 states mortgage lenders will invariably have an admin fee cited in their T&Cs you need to pay them to redeem the mortgage. Similar I guess to the start up fee although in some cases of course that can be waived/reduced by them.

As you already appreciate there is no Land Registry fee to pay for removing the charge from the register.

dunstonh

Except I've just been told I've got to pay £225 for administration.

Something isnt right if you are only being told that now. The regulator position is that you should pay the amount you agreed when you took the mortgage out or the last deal you bought (Whichever is later). The contract you agreed last would have stated the exit charges on it (both on the key features illustration (KFI) and the contract itself).

Perhaps it is more a case that you didnt read it before or you forgot.

Goldiegirl

The lenders normally send out a list of their fees once a year, normally with the annual statement...... it's likely this fee is detailed on the leaflet.


If you check the leaflet insert with your last statement, it should confirm this fee, as it would have done each year

Let_Us_See

Twenty five years ago KFIs and regulated mortgage contracts simply did not exist, and an offer of a mortgage was simply in a form of a letter with very little additional information. As the OP has been with the same lender for 25 years it may be possible to check the original documentation for fees exit/redemption fee. I can guarantee if shown, it will be no where near £225.

dunstonh

Let_Us_See wrote: »

Twenty five years ago KFIs and regulated mortgage contracts simply did not exist, and an offer of a mortgage was simply in a form of a letter with very little additional information. As the OP has been with the same lender for 25 years it may be possible to check the original documentation for fees exit/redemption fee. I can guarantee if shown, it will be no where near £225.

Whilst what you say is correct, that would only matter if he has not bought any deals with them in that 25 year period. So, new renewal of fixed rates, discounts etc but been on the original terms from the start.

It is the later of the last deal bought or the original contract. So, I would only go digging out the old contract if there has been no deals bought after the original date.

Let_Us_See

Agreed. But if he had, then the fee should not have been unexpected or the amount surprising.

amnblog

Santander used to charge this fee on application, when the FSA got snotty about them charging it they renamed the fee and moved it to the end of the process - nice.