Deed release fees

oldfart_2

In the fortunate position to have paid off our mortgage today.The Halifax want £50 to release our deeds.When i asked what happens if we don't pay it they said they will destroy them!!!!!Citizens Advice suggest we look for our original contract and it may say in there.That could take some time but i just wondered if this charge is unlawful?

Rafter

Nope - when you signed the mortgage you would have agreed to this fee. If not then Halifax would be breaking the law following the ruling on Mortgage exit fees last year. Count yourself lucky - before that ruling you could be facing a bill of £200+!

This in not a penalty fee but a charge for looking after your deeds and storing them safely for the last x years.

R.

gillbee

First time I heard of this charge was the other day when looking for a fee free remortgage. The bloke at London and Country mentioned a £99 charge paid up front to the mortagage provider to release deeds. He mentioned that it's usually when you're leaving the provider. I'm now wondering if I'm going to get hit by the northern rock for something similar when my 5 year deal is up and I want to swtich. It's an expensive business!!

gillbee

Rafter wrote: »

Count yourself lucky - before that ruling you could be facing a bill of £200+!

R.

Can anyone give me details of the ruling? Is there a certain amount which is deemed to high?
I've just been in touch with Northern Rock to find out my deeds release fee is £175. Didn't quite expect that much of a fee.