A&L exit admin fees

stujames

I had an alliance and leicester mortgage which stated the redemption admin charge was £295 on the contract, i assume they charged that but under the new FSA ruling is this an excessive amount and can i claim anything back, even though I have now paid off that mortgage.

dunstonh

i assume they charged that but under the new FSA ruling is this an excessive amount

What ruling says that you can claim the £295 back?

I suggest you read this article: http://www.moneysavingexpert.com/reclaim/mortgage-fees

stujames

dunstonh wrote: »

What ruling says that you can claim the £295 back?

I suggest you read this article: http://www.moneysavingexpert.com/reclaim/mortgage-fees

Sorry it wasn't the bit with the FSA ruling that i'd seen, it was the bit further down the page which says. It's arguable that MEAF fees aren't justified, much like with [FONT=arial,helvetica,sans-serif]reclaiming bank charges[/FONT][FONT=arial,helvetica,sans-serif] the basic concept is that under UK contract law, you can't fine someone for breaking a contract, you can only charge them an amount proportionate to the[/FONT][FONT=arial,helvetica,sans-serif] cost of the breach.

The actual administration cost to a mortgage lender of closing down a mortgage isn't thought to be much more than £50 so it's arguable that you needn't pay more than £50, regardless of what your contract says. Therefore writing to your lender, asking it to justify the charges with a full breakdown, and if it refuses asking for a full refund, can work.
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[FONT=arial,helvetica,sans-serif]Just wondering whether anyones had any success with this from A&L.
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dunstonh

administration charges are legal. Its penalty charges that have to be justifiable.

As the FSA have basically said that these charges have to be in line with what they were on the offer letter at the start or have increases that are justified you are unlikely to get back anything other than the difference.

Trying to argue in a small claims court that the charge is a penalty when it was disclosed at the start as a contract event service charge you agreed to is not likely to succeed.

innit

dunstonh wrote: »

What ruling says that you can claim the £295 back?

I suggest you read this article: http://www.moneysavingexpert.com/reclaim/mortgage-fees

i had a variable mortgage with the A&l in dec 2005 i changed this in 2006 to a buy to let mortgage they charged me £100 for doing this then with interest rates rising i decided to fix this for 2 years with the tennant inside they charged me £295 admin fee £1000 product fee. when i cashed the mortgage in due to bad tennants and repaid it fully in june 07 some 7 months later, they charged me £4000 redemption penalty and another £295 redemption admin charge, even !!!!!! turpin wore a mask, can i get any of this money back?

KTF

innit wrote: »

i had a variable mortgage with the A&l in dec 2005 i changed this in 2006 to a buy to let mortgage they charged me £100 for doing this then with interest rates rising

No because its a charge for changing to a BTL mortgage.

i decided to fix this for 2 years with the tennant inside they charged me £295 admin fee £1000 product fee

No because the £1000 fee is for 'buying' the fixed mortgage and the £295 is for sorting it out.

. when i cashed the mortgage in due to bad tennants and repaid it fully in june 07 some 7 months later, they charged me £4000 redemption penalty and another £295 redemption admin charge, even !!!!!! turpin wore a mask

No because you cancelled the mortgage early and the ERC kicked in as a result. This would have been detailed in the paperwork. The £295 is the MEAF.

can i get any of this money back?

No.