HELP! Are these charges reclaimable?

Katie_m_w

My husband and I have recently started the process of re-mortgaging as we could not afford the monthly payments after our previous lender Abbey increased our monthly payments from £515 per month to £615 per month.

We chose to go with Halifax who assured us that they covered all charges bar the odd £20ish charge.

We have a loan with First Plus, which is the 'second charge' (I think that was the expression Halifax used). In the process of re-mortgaging there is apparently a moment when our mortgage is transferred, when First Plus become the 'first charge' and therefore have first claim to our home rather than the mortgage lender. Halifax have had their solicitors write to First Plus asking them to relinquish this claim for the split second that the mortgage transfers, apparently this is normal and not usually a problem.

We have since been charged about £150 by the solicitors, which Halifax say is not covered by their offer and we will have to pay directly to their solicitors. We have also been billed £125 by First Plus just for them to sign the deed. Both parties have been dragging their heels getting things sorted so we are stuck paying our previous mortgage lender, Abbey, their extortionate monthly payments.

Do we have any options for reclaiming any of the money as this is crippling us financially and was meant to be saving us money?

Dan_Collins_2

I am sorry to say that you probably cannot. Iif its that bad and you have not completed may be borrow £400 to cover the costs. This is normal for the free legals not cover the charge. Check the forms the solicitor sent out as the charges will be on that and I bet you went direct to halifax?

Leon_W

As Dan says. Free legal services provided by the lender are for a standard remortgage only. The costs of dealing with second charges etc are bourne by the borrower.

In fairness to Halifax. They can have no influence on charges made by a third party such as First Plus anyway, as that is between you and them.

Unless these fees can be found upfront then most brokers would build a small contingency in the loan amount to cover them if necessary.

Katie_m_w

I did go direct to halifax- i'm guessing that was a bad thing! thanks to both of you for the reply- at least i know where i stand.