Mortgage exit charges

lisyloo

I am happy to take the risk especially if it goes to a good cause
However I'm not sure it's such a good idea as we'd probably argue endlessly over the wooly terms of the bet :-)

dougk_2

IMO the FSA should regulate this and all other charges. The lender should be made to quote all fees at the start so that mortages can be fairly and easily compared. Once any fee is set it should be fixed and not changeable. Banks should be made to plan ahead and think, like we the public are meant to do.

If you pay off your mortgage and they do not return the deeds to you , can this be not then deemed as theft as they have no rights to your property?

lisyloo

Do they actually physically hold the deeds anymore?

I thought that many were now held digitally at the land registry.
Is deeds release fee a mis-noma?

Does anyone know?

If they don't actually hold them then is this something else I can challenge them on?

MarkyMarkD

lisyloo wrote:

Do you wanna bet?
How about loser gives £20 to charity?

We might need to be a bit more specific about the terms though e.g. there might be a decision that's in favour of some lenders and not others.

I am willing to bet that the ombudsman will rule that £295 is too high.
If I lose I'm happy that a good cause will benefit.

Whaddaya say?

I think that saying that £295 is too high is missing the point. I thought that your principle was that the INCREASE shouldn't be too great. The A&L increase to £295 is £100 - the same as others have increased theirs.

And no, I don't want to bet. I think both outcomes are possible.

MarkyMarkD

Doug

No it's not theft. If you don't pay the charges laid down in your mortgage agreement, you aren't entitled to your deeds back.

Lisy

They don't call it a deeds release fee so I don't see how it's relevant whether they hold the deeds or not. It's a "redemption administration charge" which is an FSA standard wording and has to be called that in the Key Facts Illustration.

lisyloo

I think that saying that £295 is too high is missing the point. I thought that your principle was that the INCREASE shouldn't be too great.

It's both.
A 50% increase is too high in an environment where inflation is 1.9% and wage inflation 3%-4%.
The increase has resulted in fees which are too high for the work involved in my opinion.

It's a "redemption administration charge" which is an FSA standard wording and has to be called that in the Key Facts Illustration.

Ok, I'm sure you're right.
A&L used t ohave two fees and I think one was for deeds release and the other was called a sealing charge.
I don't remeber the EXACT names but there were definitely two in the recent past. Perhaps it has all changed recently.

My feeling is that the charges are too high, but I'm an outsider and I'm making an educated guess at what they have to do, to redeem the charge, send out deeds and close an account.
Any information about the detail is useful because it can help back up my case.

payless

I have stayed out of this thread - but a little twist , - I've noticed that KFI's ( new style illustrations) that I have ordered direct from A&L 's site (rather than via 3rd party software providers) state that the Redemption Admin Charge (RAC) is waived/ refunded in new loan taken within 3 months with them following a house move
( obviously no good on a remtg)

Note sure if they have worded it right , and mean the Early Repayment Charge (ERC) , but its there in black and white

gav1

Sorry, but in spite of starting this whole thread, I'm not that bright, Payless, and not sure exactly what you are saying here. Does your point only relate to housemovers then?

payless

gav1 wrote:

Sorry, but in spite of starting this whole thread, I'm not that bright, Payless, and not sure exactly what you are saying here. Does your point only relate to housemovers then?

Yes, appears homemovers who are loyal to A&L appear to be free of this increased charge- if their new KFI can be taken as true

payless

I doubt that its charged if you swap to one of their new (existing customers not moving house) rates either