Santander mortgage fee from 2007

Rose_quartz

We've just received a letter from Santander asking us if we want to pay our mortgage fee from February 2007 when we took the mortgage out. We asked for the fee to be taken upfront - they say they didn't have systems in place but now have.
We thought we paid it at the time - it's only 225 pound but we had it at the time - now we don't! I've complained and am waiting for a reply. Any suggestions as to potential action we can take? Thanks

w00519772

Is the fee quoted in the terms? If it is then surely it is your responsibility to pay it when you said you would pay it? Could it be a mistake?

Thrugelmir

If you don't pay the fee then it will be added to the mortgage, and cost you interest.

You haven't paid the fee. So difficult to see what you've got to complain about. Mistakes do happen.

dunstonh

Any suggestions as to potential action we can take?

A mistake does not mean you get out of paying a fee you owe.

Check your mortgage key features illustration or contract to see if the fee is detailed in there. If it is and you never paid it then you are largely stuffed unless they decide to be generous.

Rose_quartz

Hi we didn't not pay the fee - we authorised Santander to collect it at the time - the letter states they didn't have the process in place to collect it ! They still managed to collect every other fee though - it's not our fault they took over 7 years to get something in place - the letter states that if we want to pay it at the end of the term they won't charge interest

kingstreet

Rose_quartz wrote: »

the letter states that if we want to pay it at the end of the term they won't charge interest

In which case, you appear to have the answer.

Allow inflation to erode it and pay it on redemption.

Nick_C

Thrugelmir wrote: »

If you don't pay the fee then it will be added to the mortgage, and cost you interest.

You haven't paid the fee. So difficult to see what you've got to complain about. Mistakes do happen.

That's not correct. We are just in the process of taking out a Santander mortgage. We had the choice of paying it up front or on redemption. Naturally, we chose to pay on redemption. £225 will be a lot less in real terms than it is now.

If you still have the "Key Facts" document, it is probably in Section 8 "What fees must you pay?". This says "a Mortgage Account Fee for the provision and administration of your mortgage. This fee can be paid on completion or deferred until the end of your mortgage. If you defer the payment, the fee will not increase."

kingstreet

Not the first thread on this subject this week;-

https://forums.moneysavingexpert.com/discussion/5091561

Nick_C

Incidentally, in 2006 I needed to raise capital short term to renovate a property. I remortgaged with Santander and I got lumbered with the new £225 mortgage fee (these were previously called redemption fees) on my interest only mortgage. 14 months later, I was in a position to pay off the entire mortgage, and asked for a redemption figure. I asked them if they would waive the redemption fee but they said no. So I made a capital payment instead, reducing the outstanding balance to £5.

For the next 6 years, Santander looked after my deeds, sent me annual statements, and sent me a letter every time the variable interest rate changed telling me what my new monthly payment was. My payment was 2 or 3 pence every month, which they collected by direct debit.

I eventually had to pay the redemption fee at the end of the agreed term, but it must have cost them a lot more to service my account for those last 6 years than they collected on the redemption fee. Its no wonder the banks ran into difficulty.

dunstonh

I eventually had to pay the redemption fee at the end of the agreed term, but it must have cost them a lot more to service my account for those last 6 years than they collected on the redemption fee. Its no wonder the banks ran into difficulty.

That is one of the reasons most banks have stopped offering that.

Nick_C

dunstonh wrote: »

That is one of the reasons most banks have stopped offering that.

Are you saying that if you make a capital payment, there is now a minimum amount you must keep on the mortgage?

Edit: I've just checked the Key Facts on my pending Santander mortgage. Restrictions on capital repayments only seem to apply if there is an early repayment charge.