Redemption Fee (Alliance & Leicester)

markthemariner

Hi there,

Just want to pass this by you and see what you guys think.

I payed off my mortgage with the Alliance & Leicester in February 2007. The balance was paid via cheque including this rip off redemption exit fee. I recently saw Martin on a TV program and he mentioned this and how you can claim it back. I wrote to the the Alliance & Leicester to say I wanted my £295 back explaining why with advice off this site. I would have accepted £245 which is less £50 that Martin has said what the actual real administration charges are approximately. I received the reply this morning with a cheque for £120. They explain in the letter that they went from a fee of £195 to £295 which I paid someway back in 2004. Why they have mentioned this I'm not sure!!? They say the fee offered to me is the "difference between the fees in place at the time you took a mortgage with us".

I would ask what would you do? I am not happy and want more of the amount I paid ie the £295 fee. I think they have tried to fob me off. It seems most will pay out but won't give you them amount you actually are entitled to.

I would appreciate your thoughts and if you have had the same experience.

Regards,

Mark.

dunstonh

I would have accepted £245 which is less £50 that Martin has said what the actual real administration charges are approximately.

I haven't read the article recently but I doubt Martin says that because admin fees do not need to reflect the cost. It doesn't matter if it costs them 10p, £10 or £100.

It seems most will pay out but won't give you them amount you actually are entitled to.

I am not sure you have read Martin's article as if you had you would know that you have been offered the correct amount and that A&L are acting in accordance with the FSA's instructions.

Your contract when you took out the mortgage (or the last deal you agreed) would have stated the amount. The lender should use that amount (unless a realistic increase has been agreed and sanctioned by the FSA).

Why they have mentioned this I'm not sure!!?

Because they are complying with the rules correctly and not the made up way you have asked them.

If you want more info then take a look at Martins article again or read the multitudes of posts on the same subject.

Xstyle

You can't claim back exit fees when they are stated at the outset of the mortgage can you???

Dan_Collins_2

Sounds ok if you joined them in 2004. Your offer and quote will show this fee.

markthemariner

Hi there,

Back in June 2006 I asked for a redemption statement as I was going to pay it off then, something came up and I didn't bother. I was given the balance at that time with a redemption charge of £295. I'm not sure how the offer of £120 is good if I paid the redemption fee I did. I was under the impression that these fees were totaly inflated to what they need to be and that is why lenders are required to pay them back, or at least a decent percentage. This site does state that the approximate fee for the administration charges to the lender amount to about £50. And haing watched Martin on TV saying we should all apply for these fees back as they are a rip off in terms of what they are. Also it seems so have the lenders by the FSA otherwise they would'nt be making offers of repayment of the fees.

I am just wondering if that it is common practice to turn down the first offer as the lender could just be offering a low amount to see if they can get away with it? I did swap my mortgage with them in 2004 or there abouts. Why does this make this offer that they have sent me a decent one?

I just want advice if I should accept this or request another offer to be made because I am unhappy with this one.

Regards,

Mark.

dunstonh

I was under the impression that these fees were totaly inflated to what they need to be and that is why lenders are required to pay them back, or at least a decent percentage.

You are mistaken.

I am just wondering if that it is common practice to turn down the first offer as the lender could just be offering a low amount to see if they can get away with it?

No.

The lenders have to follow what the FSA have told them. This is the difference between the figure on the contract offer letter and what was charged.