Mortgage Exit\Sealing Fee

Farmerbob

Hi Guys,

I’ve had a RBS mortgage since 2005, I’m just costing remortgaging to another lender and on the original illustration from the time the fee is £225 am I right in saying I’ll still be charged this despite product switching numerous times and this fee not being shown on the consecutive illustrations?

Phones been busy so not been able to get through to them so want to throw it out there.

Thanks

Rob

Thrugelmir

Mortgage exits fees are disclosed in the list of tariffs and charges that accompanies your annual statement of account.

ACG

Section 8 is where it would normally be from memory.

If it is not listed on your latest product illustration/offer then I would not expect them to charge it.

I made an application to Natwest today (Natwest/RBS are the same bank) and have just checked and you appear to be right, there is no exit fee listed on there.

Interesting.

amnblog

Nearly all lenders charge a sealing fee in some form.

I've noticed with product switches that it is often not shown on the new illustration.

I think this might be because these fees used to be charged up front until the regulator got snotty about it about ten years ago. Then the lenders changed the fee title and some started 'charging it' on completion of the mortgage but deferring payment until settlement - a mildly shameful way of having their cake and eating it.

Our OP will see this fee listed in the original mortgage offer because that is when it was charged.

Farmerbob

Thanks for the replies.

There’s nothing in section 8 of the PS illustrations, only the 2005 one. I know from the tariff of fees leaflet it mentions what a mortgage exit fee is and slotted in the end is “ only applicable to mortgages opened before 31st July 2007” and where the fee amount usually is “it will vary depending on when you took the mortgage”

I guess the questions should have been does the fee still stand as I took my mortgage before 31st July 2007 or do the product switches taken after them override this fee/clause since it’s not mentioned?

amnblog

It stands, the PT's do not override it

Farmerbob

amnblog wrote: »

It stands, the PT's do not override it

Thanks, I guess a little bit of me was hoping that was not the case but it was worth checking

Thrugelmir

To the lender it is an administrative cost. As the charge will be need to be removed by a suitably qualified individual.

Farmerbob

Thrugelmir wrote: »

To the lender it is an administrative cost. As the charge will be need to be removed by a suitably qualified individual.

I don’t grudge it as I signed up for it. I just found it odd that they don’t quote it anywhere on the offer for the PS alongside the fees or ERC’s but every lender has a slight variations of content of the illustration. I work for a lender that puts it on all their illustrations. At least I know to include it in my calcs 👍🏼

Farmerbob

So update managed to get through to RBS and got the redemption statement sent over much to my relief no note of the fee, I’m quite surprised but I’ll only count my chickens once it’s redeemed and discharged