Have I been overcharged on my MEAF?

Evsee

I know the current situation where lenders have extorted the price of a MEAF when surrendering a mortgage i.e. the amount they charge is far more than they quoted. I recently read that 10 years ago they cost about £50 and now a days about £200. When I took my mortgage out 7 years ago the tariff was £245 (which I agreed to as part or the terms of the mortgage agreement). As this was extortionately high for the time, is there any legislation as to the lender having to justify this amount, and failing to do so, receive a part refund?

dunstonh

The requirement is for them to look into the difference. If the fee, which was published at the start of your mortgage was £245 and we still £245 on redemption, then there is nothing you can claim.

Whilst lenders are now generally lowering or removing this charge, they are offsetting it with increasing arrangement charges. Which ironically will probably cost the consumer more in the long run as you didnt usually pay an MEAF if you changed deals with your existing lender. However, you will now pay increased arrangement costs.