Extortionate Final repayment fee!!

Donut41

Thank you all, amblog, I am referring to a new mortgage product taken out on our existing property with the same lender!! We haven't moved or switched lenders which is another reason why I am shocked the bank have taken this payment off us (took it out of our surplus funds owed to us) also I have looked and under the Final repayment charge it says in brackets (fee is subject to change in the future) Barclays now charge £80 for this fee so if we have to pay it why isn't it £80? I'm sure if fee had increased they would of exercised their right to change it! ��

nidO

Donut41 wrote: »

Barclays now charge £80 for this fee so if we have to pay it why isn't it £80? I'm sure if fee had increased they would of exercised their right to change it! ��

You need to stop getting hung up on the fact that the fee is now lower for new mortgages.
The price of things go up and down all the time, just because the price of something goes down doesn't mean the supplier is acknowledging that the previous, higher fee is in some way "wrong" or "unfair", its just now cheaper than it was.

You should be totally ignoring the fact that the fee has changed between your old contract and your new one and concentrating on reading your documentation and contacting the bank to find out if you should have paid it at all.

If you were simply switching products for the same mortgage on the same house with the same lender, you should not have been charged the fee as has been said by several other posters.

If you have, this would suggest either one of the above is not in fact true, or the bank have made a mistake charging you it.

kingstreet

Donut41 wrote: »

I'm sure if fee had increased they would of exercised their right to change it! ��

No. They aren't permitted to increase it.

Northern Rock tried that a few years ago and the FSA slapped them down, so others stopped trying as well.

You pay what was agreed at the outset.

I still don't understand how this fee has been charged. "Surplus funds owed to us?" All you've done is taken a new mortgage product on the same amount you owed, no house move, no increased borrowing?

Jhoney_2

Donut41 wrote: »

Hello, I am looking for some advise as what I have found on the Internet so far hasn't been very clear??
Last week we completed on a remortgage with Barclays/Woolwich. Our old mortgage was also with Barclays dating back to 2011.
Today we have found out that we have been charged (and they have deducted it from our monies owed already) £275 for a final repayment fee???? Not once did the advisor tell us about this fee and we had no idea we had paid it till today?? I have looked on our new mortgage offer and Barclays fee says £80, so had a hunt for the previous mortgage offer and yes! it says on there £275?? This is the first time I have realised that this was a charge for just changing mortgage!! and I am so cross that Barclays have charged this amount and their advisor never brought our attention to it!! especially as we stayed with a Barclays mortgage??? How can they justify this amount of money?? and why is the charge now £80 if they didn't know that the old pricing was totally disproportionate
Please help! Is there anything we can do?? ��

OP your wording is confusing even the experienced advisors here, who are trying to help.

1. Is the sentence in blue above the home you bought in 2011 and have recently sold?
2. Is the sentence in black above the new home you have recently purchased with the same lender used previously e.g Barclays/Woolwich?

If your answer to these questions is yes, you were charged the appropriate fee of £275 as this was the amount on your previous mortgage paperwork and contract.


You have taken a new mortgage with them - again. That is not the same as saying you remortgaged with them. Hence the confusion.



If you move again in x years time, you will be charged an £80 fee as on the new mortgage contract, no matter what is charged for them in the past/future.


You are not entitled to reclaim/reduce or dispute it.


I hope that helps.

Foxy-Stoat_3

If you had read the T's & C's before you took out the mortgage and noticed this charge, would this of made any difference to you at the time?






I thought not.

dunstonh

Donut41 wrote: »

We didn't move house, we just remortgaged. My biggest gripe is the amount of money it is! It is totally disproportionate to what it is supposedly paying for. Which Barclays have obviously realised as now the fee on the new mortgage is £80. The fee on the original offer doesn't clearly explain what the fee actually is (I thought it was a fee when you finally pay your mortgage off and are mortgage free ie, to release the deeds to us etc)

Barclays have not obviously realised that. What has happened is that the backend fees used to cross subsidise the front end fees. In recent years, that has stopped and the front end fees have gone up whilst the back end fees have gone down.

Today we have found out that we have been charged (and they have deducted it from our monies owed already) £275 for a final repayment fee???? Not once did the advisor tell us about this fee and we had no idea we had paid it till today?

You signed a contract agreeing to it. In 2011, this would have been printed in clear text and not hidden away. Annual Statements usually carry this information too.

How can they justify this amount of money?

Easily.

Is there anything we can do??

Only if your 2011 contract has a different figure to £275. If not, then no. you agreed to it.

Barclays now charge £80 for this fee so if we have to pay it why isn't it £80?

Because the old product you had was priced differently to the new product you have. That is retail for you.

I'm sure if fee had increased they would of exercised their right to change it!

They cant as that would be breach of contract. This is why you have contracts. They set out the terms and both parties agree to those terms (or you take your business elsewhere)

just for clarification, it is unusual to pay the charge when buying a new deal with the same lender (on the same banking licence). Are you sure you are buying through the same distribution channel as previously? i.e. It wasnt say Woolwich before but Barclays now or a Standard Life mortgage originally but Barclays now.

amnblog

Donut41 wrote: »

Thank you all, amblog, I am referring to a new mortgage product taken out on our existing property with the same lender!! We haven't moved or switched lenders which is another reason why I am shocked the bank have taken this payment off us

There is something not right here. The £275 mortgage repayment charge should only be payable when you have cleared the lending with Barclays on the property.


Have we crossed wires? Any clues anyone?




Have you removed or added a borrower to the mortgage?

kingstreet

Only what dunston suggested, ex-Woolwich, or ex-Standard Life mortgage and and "internal remortgage" to a Barclays product?

Their product code variations confuse the hell out of me, along with which borrower can have what product!

amnblog

It's simple KS.


The borrower can have any product apart from the one you select first time!

Donut41

Thank you everyone for your responses but I had a eureka moment tonight and read carefully through our new mortgage paperwork and there was the proof I was looking for under Supplementary Conditions
1: provided the new mortgage completes simultaneously with the redemption of mortgage account ********* any final repayment charge shown on redemption statement for the existing mortgage will not be payable and should be excluded from the redemption monies sent to us.
!!!!!! The conveyancer a did in fact exclude it as they had read the offer but we were owed back a final mortgage payment of £660 as it wasn't deducted from the final redemption (last payment came out 2 days before mortgage changed) any way yesterday Barclays put the payment into our account MINUS the £275!!! Which u now have the job of trying to chase up and get it back!!!!