Mortgage exit charges

lisyloo

If you overpay more than £500 with A&L (and with most other lenders) then they recalculate the interest bearing balance instantly.

Thanks for the info I didn't know that.

However I think A&L fees for an internal switch of £645 are too high, so I'm off to Britannia for less.

I have had a "NO" reply to my first letter of cmplaint about A&L exit charges.
Just sending off the second one today.

I am hopeful of getting some money off from reading the results of others.

gav1

Not only was I offered a discount from the £295 down to £195, but sensing that I was gaining the upper hand, I pushed my luck a bit further. I made them an offer of £145 over the phone which they accepted. So haing started this thread 10 pages ago I'll now put my contribution to bed, but thanks to you all for your input, as without it I'd probably still be banging my head in frustration.

michaels

Gav - result!!!
I sent my second letter yesterday, response to first was no change so I guess I'll see in the next couple of days. In revenge my wife and are are getting seperate current accounts and credit cards so hopefully we can take a hundred quid of them that way for the hassle they have put us through - def not going back on next remortgage even if they are the cheapest.

MarkyMarkD

payless wrote:

We have had this discussion before - it can make more of a difference on shorter term repayment mortgages - even ignoring possible overpaments ( ie approx 0.4% on a 10 yr repay mtg) although there is a faster capital repayment in early years ( but not sure thats makes taht much difference if taken to end of term anyway)

On 25 yrs rep[ayment it generally appears to "add" about 0.1% on the rate- but again part of this is then reflected in slightly faster capital repayment .

I don't think we have had it before, at least not in relation to monthly vs daily. There really is NO difference between monthly and daily capitalisation, if you pay on the last day of the month, and never over-pay, whether the mortgage is on interest only or repayment and irrespective of term.

If you have a monthly capitalisation mortgage and pay early in the month, you are wasting money.

I agree with you about the approximate 0.1% but my argument has always been that you should select the best mortgage for you, and then (only then) decide if there's an identical product out there with a better capitalisation method. Normally the capitalisation method will not be the determinant.

Overpaying shouldn't be a consideration unless you routinely overpay by less than £500 in each month. And if you do that, you should just consider aggregating the amounts if you are on monthly capitalisation (and certainly if you are on annual capitalisation) until they are at least £500.

brm_2

MarkyMarkD wrote:

I don't agree. The costs of opening and closing accounts are tangible and real, and customers who open/close accounts more frequently are less profitable than those who remain loyal over the longer term. That's why, IMHO, entry/exit charges are becoming more common, and more significant, as customer loyalty across the banking industry continues to decline.

It does not matter whether you are talking about mortgage or bank account charges.
We, the people, for whatever reason, have allowed the banking/employers organisations to allow our salaries to be paid into an account, with whichever bank or building society.

If, as it was in the past, our payment was in cash we would then have the choice to determine whether we bank or 'keep it under our bed'

Stuff banks.

lisyloo

Does anyone have to hand a history of A&L exit fees for the last few years.
I joined in September 2003.

I am wanting this information because I have had an offer from A&L to reduce the exit fees to £195.
I am considering challenging that further (inspired by Gav) but the numbers would help my case.

Thanks

michaels

lisyloo - I can only tell you that the charge was £75 deeds release plus £75 redemption when I took out mine on 31 March 2003, hope this helps

ReportInvestor

My information, is that A&L may still prepared to knock off £220 quid (i.e. down to £75) for the 2003 cohort, but only if you complain and complain................

.......... and complain.

Good luck!

michaels

A&L have written in reponse to my second letter offering £150 - ie what I agreed to when I took out the mortgage which I think is fair. (It is tempting to follower reporters advice but I am now at what I agreed to originally so more would just be greedy).

So thanks for all the help and advice from this thread. If anyone wants copies of any of the letters just ask.

burnoutbabe

Well have written my first complaint (a print out version from here i think) and have had it dropped from £295 to £225. So £80 off.

I think my fees was £150 (i always thought £75 but apparently it was 2 lots of £75 when i took mine out) so shall write again, hope they don;t just say tough, its back at £295.