Final account administration fee

Gaza76

Santander have sent me my final mortgage statement and are trying to charge me £225 admin fees. My mortgage contract states this should be £99 where do I stand
thanks

Thrugelmir

Every year with your mortgage statement you will have received an updated schedule of charges. The discharge fee will have increased over time. 

kingstreet

If you took a customer retention product at any time during the currency of your mortgage, the fee will have increased to reflect the new product. Only if you have remained on the same deal since day one will the original fee apply.

dunstonh

Gaza76 said:

Santander have sent me my final mortgage statement and are trying to charge me £225 admin fees. My mortgage contract states this should be £99 where do I stand
thanks

The FCA guide on this is that you pay the redemption fee of that last deal you bought. Not the original deal.  i.e. if you bought the mortgage originally and it was £99 then but 5 years later entered a new deal where is was £150 and then 5 years later got another deal where it was £225, then its the last deal (£225) that you pay.  

The latest contract supersedes the earlier ones.

Gaza76

I Have spoken to Santander customer service and they have confirmed that on the paperwork in 2005 it states £99 Administration fee and he could not understand why I was being charged £225 so it has gone further up the chain so legally do I just stand my ground and pay £99
Thanks

dunstonh

Gaza76 said:

I Have spoken to Santander customer service and they have confirmed that on the paperwork in 2005 it states £99 Administration fee and he could not understand why I was being charged £225 so it has gone further up the chain so legally do I just stand my ground and pay £99
Thanks

So, you bought a mortgage in 2005 with Santander.   And at no point since then have you ever entered into a new deal with them?

If you have never had a new deal (new fixed term, new discount, cashback etc) then you should be paying £99.   If you have had a new deal then it will be the terms of the new deal.