Incorrectly Charged an Early Repayment Fee - What do we need to look out for?

sleepingpintsized1 · 27 January 2015 at 9:46PM

Hi, we received our annual mortgage statement to find we've been charged an early repayment fee of £2655 which we're assuming was added to our account last June when we remortgaged. However, we remortgaged with the same company at the end of a 5yr fixed deal.

We have been advised there has been an administrative error and they are working towards rectifying the situation. We're just wondering if there's anything we need to look out for as we have no idea what we're owed or how to work it out - surely it can't just be a refund of the £2655?

We're wondering if anyone else has faced a similar situation and could offer some guidance?

Many Thanks

Thrugelmir · 27 January 2015 at 9:49PM

You should also refund a refund of interest charged. That'll put you in the position you should have been. Also the lender will no doubt give you compensation for the inconvenience caused..

sleepingpintsized1 · 27 January 2015 at 11:00PM

Thank you for replying Thrugelmir. We've been overpaying each month so guess that will add to the problem of working out the refund. Just wish we knew how to work out where we should have been had the error not have occurred. It feels like we are going to have to take their word for it. They've been very apologetic about the error but didn't think they'd do anything other than refund what's owed us - we never saw this as a compensation issue but guess we'll have to wait and see? Thanks again.

sleepingpintsized1 · 1 February 2015 at 11:39PM

Just by way of an update, the building society have calculated where we should have been with the mortgage had the early repayment charge not been added. Monthly payments have gone down but as we overpay each month anyway, guess that just means we're overpaying that bit more each month!! There was no talk of compensation and we never asked (though not entirely sure if it should have been a case of us asking - wouldn't have felt right!) Anyway, we're happy with the outcome so we're not going to think anything more of it. Thanks again for taking the time to respond.