Mortgage discharge fee

time2getalife

Hello and thank you to anyone that takes the time to read this post. My mortgage term is ending on the 30th June, it was a 15 year mortgage taken out in 2004.
When I inquired about recieving the redemption figure I was advised that as my mortgage term was ending that I wouldn’t have to pay the mortgage discharge fee as the mortgage was ending naturally and I wasn’t selling etc.
I have just recieved the redemption figure and the quoted figure includes the fee of £195.00 for the mortgage discharge fee. I will be contacting the mortgage company today but before I do I was wondering if anyone knew if this is correct that they add the discharge fee as I won’t owe them anything as of 30/06/19 as the term has ended and balance paid off. It is a repayment mortgage if that makes any difference.
Thanks for your time.

Thrugelmir

Discharge fee is to cover the lenders costs for the final legalities of removing the mortgage charge from the property and likewise with the Land Registry. A standard fee.

If you continue to pay your monthly direct debit the fee will be collected.

time2getalife

Thank you for your reply and clarifying that for me, I only queried it as the advisor I spoke to when I requested the redemption figure for clearing the balance at the end of the month said I wouldn’t be charged the fee as the term of the mortgage ends on the 30th.
Thanks for taking the time to read and reply it’s appreciated

ACG

As far as I am aware it would always be charged.
You may be able to get them to waive it as a goodwill gesture if the call was recorded, but ultimately you are no worse off because of the mistake (ie you would always have been charged it).

As above, it covers the legalities of removing their charge from your home which is always needed.

time2getalife

Thank you ACG for your reply. I always thought I would have to pay it so will pay it by the 30th and look foraward to having my home secure and mortgage free. Thank you for your time and reply.

amnblog

I suspect the person you spoke to was thinking about the early redemption charge not the discharge fee.